Naira redesign: Stop economic chaos, NECA implores FG

The Nigeria Employers’ Consultative Association, NECA, has urged the Federal Government to look beyond the politics of the naira redesign and instead focus on the negative consequences for businesses and the economy as a whole.

Speaking in Lagos, the Director-General, Adewale-Smatt Oyerinde, said “It is unfortunate that too much attention has been placed on the politics of the naira redesign, with government and, indeed, the Central Bank of Nigeria, CBN, shifting attention away from the damaging effect of the cash squeeze on businesses and the already fragile economy as a whole.

“No matter how well intentioned, a good policy with poor implementation plan will ultimately fail, eroding the little gains the economy would have made.

“It should be on record that the CBN Naira redesign policy with the objectives as stated by the CBN is laudable. However, like many of the Bank’s Policy initiatives, this is also flawed by improper and shortsightedness in implementation.

”For a definitive monetary policy as the naira redesign, it is expected that the CBN will not only take lessons from other countries such as India, Myanmar, Australia, Venezuela, Zimbabwe and the European Union, who witnessed various degrees of successes and failures when they implanted their currency redesign, but will also do a thorough analysis and simulation of likely social and economic challenges that might arise and definitive response to those challenges.

”Thus far, it does not seem that the CBN understands the challenges, nor has solutions to the economic issues, thereby allowing speculators and economic saboteurs to have a field day at the expense of legitimate businesses and the economy.

“In the last few weeks, with the cash squeeze and the purchasing ability of Nigerians greatly impaired by the shameless implementation of the policy, the economy has witnessed a significant bashing with report stating that the real sector witnessed about 40 per cent drop in productive activities.

”As the cash crush continues, thousands of productive hours are lost daily on queues by employees and many cannot even get to work. The value chain in the formal and informal sector with over N10billion cash transaction daily is almost destroyed, with consequences for employment, business sustainability and national development.”

While making recommendations for a quick resolution of the challenges, the NECA boss urged that “while the CBN’s desire for a cashless economy is commendable, it should not, in the process exclude those it intended to include.”

”We urge that critical and immediate efforts should be made  to improve or upgrade alternative routes to cash, thereby ensuring seamless transactions before going digital.”