Organized Private Sector (OPS) and the African Network for Environment and Economic Justice (ANEEJ) on Thursday postulated that the only way government can address the current economic recession is to put policies in place to boost Small and Medium Enterprises (SMEs).
The OPS comprised the Manufacturers Association of Nigeria (MAN), Edo/Delta chapter, and the Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA).
Speaking with BusinessDay in an exclusive interview in Benin City, the groups attributed the current recession to COVID-19 pandemic and the #EndSARS protest that was subsequently infiltrated by hoodlums.
In their various remarks, Okwara Arua Udensi, chairman, Edo/Delta State chapter of MAN, David Ugolor, executive director, ANEEJ, and John Yesufu Imalingmhe, director general, BENCCIMA, noted that encouraging SMEs will contribute significantly to navigating the country out of economic challenges.
The trio also said it was uneconomical for the leadership of Nigeria to fully rely on crude oil.
Udensi said the association was not surprised at the recession, adding that the manufacturing sector will be worst hit because of the hike in prices and difficulties in getting raw materials for production.
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He said the development was not good news for the manufacturing industry. He frowned at the way the Central Bank of Nigeria (CBN) was managing the nation’s economy, especially the currency market.
While describing the management of the dollar by the CBN as unacceptable, he opined that it has contributed to the nation’s economic woes.
“Our foreign reserve is in dollar, and when we don’t have it, it becomes a problem. As it is today, exchange is about N480 per dollar, and it may go up to N500 in the coming days.
“I don’t see us coming out of this recession this year. One of the ways government can take us out of recession is to encourage SMEs, provide lifeline and constant power supply to boost up manufacturing.
“Manufacturers need to be encouraged. If manufacturers get good working conditions such as uninterrupted power supply, then it will boost manufacturing and consequently lead to drop in prices of commodities,” he said.
On his part, Imalingmhe of BENCIMA asked for relaxation of tax drive for the SMEs’ survival. He also called on state governments to take a cue from the federal government’s survival fund, and assist small businesses within their jurisdictions to stand on their feet.
He explained that when industries are collapsing, definitely recession will be inevitable.
He said COVID-19 pandemic, #EndSARS protest and government policies were major catalysts and contributory factors to the present economic challenges confronting the country.
“Unemployment rate is alarming, and when businesses begin to collapse, then the unemployment market begins to swell, thereby resulting to high rate of criminality in the country.
“When you talk of recession, you look at the economic side of it – things are going down and are no longer normal. People no longer live to standard due to decline in economy.
“So, when there is decline, the things you consider include government’s policy, economic policy, reaction of organisations, and other challenges over time.
“You can see some of these small scale industries who are the propellants, those factors that grow the economy, many of them have gone out of business because of COVID-19 pandemic,” he added.
Ugolor of ANEEJ called for the prudent management of the nation’s resources, and readjustment of the budget to reflect ways the country can climb out from the negative impacts of COVID-19.
He noted that huge amount of the nation’s economic resources go to the services of political machineries and advocated that the current recession presents an ample opportunity for government to reduce it.
