Adewale Sanyaolu

The Nigeria Employers Consultative Association (NECA), has urged the Federal Government to make available electricity bailout for power consumers.

NECA Director General, Dr. Timothy Olawale, made the call during a Channels Television progamme, Business Morning in Lagos yesterday.

He said in the wake of the directives by various state governments and the Federal Government for a sit at home order, especially for civil servants to contain the spread of coronavirus, more families would have to pay more for electricity bills.

He said the weak purchasing power of Nigerians would be further eroded with mounting electricity bills, hence the call for an electricity stimulus package to cushion the effect.

He, however pointed out that lack of data for the citizens could pose a threat to the initiative as the country lacks credible data to track the poor of the poorest.

He said the Federal Government should have used the opportunity of the lapses discovered during the implementation of the Tradermoni initiative to correct same, by streamlining and harmonizing its date collection and collation processes to make it reliable and credible

The NECA boss said the country needs a reliable base as the issue will keep coming over and over, and that only a reliable database would solve the challenges that come with such.

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NECA had in an open letter to the President Muhammadu Buhari, called on the Federal Government to consider tax waivers and other fiscal incentives that would enable them retain jobs. It also canvassed the suspension of payment of taxes and levies, noting that the coronavirus pandemic has affected business circles and activities.

According to NECA, “The real sector is facing the risk of total shut down, as there are no imports and exports; sales are down and production at almost zero level. At the same time, workers are expected to be paid and other commitments honoured by the businesses. “Tax-free cash flow boost for employers; a stimulus package to help pay wages or for investment to protect against a downturn in activity; the payment should be open to businesses with a turnover of less than N50 million”, NECA demanded. The association also urged government to allow for tax payment deferrals more flexible for a period of six months, upon request, with a discount on interest rates

The letter, which was signed by Olawale, called on the president  to take more specific steps in providing palliatives and support to organised businesses.

The group listed the specific support to include, among others, a temporary scheme for paying compensation to companies in risk of laying off in order to retain jobs to aid the continued existence of companies and prevent layoffs within private companies facing financial pressure as a result of coronavirus.

“Under the scheme, which could last for the next three months, Government will cover 60 per cent of the salaries of employees paid on a monthly basis, who would otherwise have been fired, with companies paying the remaining amount”, it stated.

NECA further advocated support from government to negotiate and reschedule bank loans, to aid in boosting businesses and also afford adequate time for payment, especially loans taken by companies within the past three months.

Specifically, it listed some of the sectors that are worst hit and that should enjoy special focus as Aviation, Hospitality, Manufacturing, Retails, Tourism, Food and Beverage, among others, adding that government could collaborate with NECA as the representative body of organised business to implement stimulus packages that are sector specific.”