Businesses To Shutdown Over Naira Crisis, NECA

Nigeria Employers’ Consultative Association has predicted the shutdown of small businesses if the lingering naira crisis persists.

The Director-General, NECA, Mr Wale Oyerinde, said with the rising inflation and reduction in purchasing power of consumers, the nation could witness the death of many small and medium-scale businesses as well as the shutdown of many large businesses.

He said, “As Nigerians grapple with limited availability of cash, they are at the same time confronted with scarcity of petrol, a product for which trillions of naira is being expended as subsidy, while businesses also continue to face increasing energy cost, inadequate forex, high operating cost amongst others.

Oyerinde said the current situation portends grave danger for the economy, adding that Nigerians were not able to access the new notes.

“It is apt to conclude that it could be counter-productive to seek to implement a cashless economy abruptly, when at the same time the new Naira notes are being rolled out in limited quantities within an impracticably short timeframe.”

Oyerinde urged the government to as a matter of urgency ensure the availability of the new naira notes, prosecute saboteurs if necessary to ease the frustration of Nigerians and avert the impending breakdown of law and order.

He further added, “Contrary to the touted narrative and according to financial experts, Nigeria does not have excess cash in circulation (it is less than 2percent of Gross Domestic Product). The latest report by the Central Bank of Nigeria actually shows that the currency in circulation is only N3trn out of N52trn aggregate money supply. If the monetary policy is not working as we have seen overtime, it is not because of the N3trn out of N52trn (which is less than 6percent).”

He however reiterated that the government should save the nation’s economy from further bashing, adding that Nigerians grapple with multi-facet problems.