#EndSARS Protest: NECA solicits bail-out funds for affected businesses

The Nigeria Employers’ Consultative Association (NECA), has called on the Federal Government to without delay make public its detailed plans on how it intends to support businesses that were destroyed during the EndSARS protest that ravaged the country.
It said , now, that the protest has ended it was very imperative that effort be made to ensure a return to economic normalcy across the country ,even as it recommended that deliberate bail-out funds be made available to verifiable businesses affected by crisis, urging that approval of funds from the Stabilization Fund of the Nigerian Sovereign Investment Authority (NSIA) be made as part of the effort.
“It is critical that further initiatives need to be urgently put in place to ensure a quick return to economic normalcy across the country. We therefore urge the Federal Government to, without delay; make public details of its planned support for the businesses that were affected,” the president of the association,Taiwo Adeniyi declared at a press conference on Tuesday afternoon.
Adeniyi , who is also the Chairman of Council of NECA said that the association also “recommends that deliberate bail-out funds for verified businesses affected by the crisis as well as other programmes and interventions aimed at supporting these businesses to get back to production and remain sustainable and competitive in the long run, be urgently initiated.”
“Prior to the outbreak of COVID-19 pandemic, the Nigerian economy had witnessed tepid domestic growth, constrained fiscal space, low foreign and domestic investments, declining foreign reserves, which made the economy disproportionately vulnerable to the twin shocks of crude oil price/production collapse and a health crisis.
The GDP was projected to grow at 2.93 per cent in 2020; however, this was reversed to -4.3 per cent by the International Monetary Fund (IMF), following the outbreak of COVID-19 pandemic, and its rapid twist into a global pandemic in Q1 2020, which has had corresponding economic consequences.
According to the World Bank, the COVID-19 shock alone is projected to push about 5 million more Nigerians into poverty in 2020. While before the pandemic, the number of poor Nigerians was expected to increase by about 2 million largely due to population growth, the number is now projected to increase by 7 million – with a poverty rate projected to rise from 40.1 per cent in 2019 to 42.5 per cent in 2020.
Adeniyi said , “still stuttering from weakened growth and struggling to recover from the negative effects of Covid-19, organized businesses became one of the victims of the colossal and barbaric destruction and vandalization of critical investment and assets by hoodlums.
This act not only compromises the ability of these businesses to meet obligations to their creditors, vendors, employees and regulators amongst many others, it also has the capacity to cripple efforts at reducing unemployment and attracting foreign direct investment into the nation.”
He said while the Lagos State Government estimated a loss of about N1trillion and Plateau State Government estimated over N700 billion, the total value of the economic loss to organized businesses nationwide could be in the region of over N5 trillion.
The NECA President said “from looted machineries, consumables, livestock, raw-materials, pharmaceutical products, luxury goods and cash to actual and wicked vandalization and destruction of walls, smashed and mutilated doors, glasses, damaged critical electricity infrastructures, burnt buildings and properties and looted stocks. The list is endless.”
“The actual value in terms of financial, emotional and psychological loss suffered as a result of the arson and looting experienced by these businesses can only be imagined and the impact will linger for a long time. Representatives of some of these businesses will share their stories in the course of this Press Briefing.
“We commend the Federal and State Governments and a number of non-governmental Organizations for the initiatives and interventions aimed at mitigating the loss by businesses.
We wish to particularly call out the proactive and on-going steps by the Lagos State Government, the Central Bank of Nigeria, Access Bank Plc, Federal Inland Revenue Service (FIRS) among others that have taken it upon themselves to support businesses to ensure the sustainability of the Nigerian economy.
The proactive initiatives by the Governor of Lagos through well-thought out tax-breaks, grants and other financial assistance from other Stakeholders, have increased the confidence of organized business that better days are ahead.”
NECA Chairman said while the additional window of penalty and interest waiver for businesses by the Federal Inland Revenue Services is commendable, what businesses really need at this critical period is substantial tax relief to enable them stay afloat and also keep productive activities going.
“It is in our national interest to enable businesses surmount the challenges of rising unemployment.
We strongly believe that setting aside an Intervention Fund for the purpose of easing the burden of losses incurred by businesses as a result of the dastardly acts will not only make a huge difference but it is in the enlightened self-interest of the nation.
Approval of funds from the Stabilization Fund of the Nigerian Sovereign Investment Authority (NSIA), among other possible measures would help stabilize the system and stop further increase in unemployment rate,” he said.