Oil Marketers Join NECA in Calling on FG to Reevaluate Fuel Subsidy Removal, Naira Floatation, Urge Pragmatic Approach

The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to revisit the decision to remove fuel subsidies and allow the naira to float, citing potential unemployment crises amid the current challenging economic climate.

NECA, representing employers in the country, criticized the government’s policies, including the redesign of the currency by the Central Bank of Nigeria, removal of fuel subsidies, floating of foreign exchange, increased taxes, and a higher foreign exchange rate for customs import clearance.

Director-General of NECA, Mr. Adewale-Smatt Oyerinde, highlighted the adverse impact of these measures on businesses, leading to potential closures and downsizing. Oyerinde expressed concern over the rising unemployment rate, projecting a 40.6% rate for 2023, emphasizing the urgent need for the government to support the private sector, the largest employer in the economy.

Amidst the economic challenges, Oyerinde recommended the government to end monetary rationing, review fuel subsidy removal, and reconsider the floating exchange rate. He emphasized the importance of transparently guiding the nation’s currency and reviewing tax credits and projections to alleviate the burden on businesses.

Oil Marketers Plead for Naira-Dollar Peg at N750

In a related development, oil marketers, operating under the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), appealed to President Bola Tinubu to peg the naira at N750 to the dollar. The plea comes as the naira experienced a further decline to N1,850 against the dollar.

NOGASA President, Mr. Benneth Korie, attributed the economic challenges to constant devaluation, urging the government to take bold steps in handling the foreign exchange market. Korie expressed concerns about the high cost of the dollar forcing marketers out of the industry, warning of potential station closures by the end of March.

Highlighting the impact on the cost of diesel and the struggles faced by the industry, Korie urged a return to the N750/$ benchmark set in the budget. He suggested reconsidering the deregulation policy and introducing bridging (petroleum equalization fund) to alleviate transport costs.