The Nigeria Employers’ Consultative Association (NECA) has called on Government to give more tax cuts to promote business capital investment as a means to improve economic growth after Nigeria recently slipped into a recession.
This was disclosed by NECA’s Director-General, Dr. Timothy Olawale, in a statement on Saturday.
“The report of NBS showed the country’s GDP growth declined by 3.62 per cent in Q3, 2020 after an earlier contraction of 6.1 per cent in Q2.
“In summary, the GDP for Q1 to Q3 of 2020 stood at -2.48 per cent; the oil GDP fell by -13.89 per cent from -6.63 per cent in Q2 2020 and Non-Oil fell by -2.51 per cent from -6.05 per cent in Q2 2020.
“With negative GDP growth in two consecutive quarters, the economy has invariably entered into recession,” Olawale said.
He proposed that the FG announces tax cuts to boost investment into the nation’s economy and fast track the implementation of policies to diversify export opportunities.
“Government should give more tax cuts to promote business capital investment while encouraging local and foreign investment.
“Government should fast track the implementation of policies to diversify further its export potentials, mostly the huge stock of natural and agro resources, in order to reduce pressure on the foreign reserves.
“We call for more robust and comprehensive expansionary fiscal and monetary policy packages to expeditiously reflate the economy out of the current crisis,” he said.
What you should know
Nairametrics reported that Nigeria’s Gross Domestic Product (GDP) in real terms declined by -3.62% (year-on-year) in Q3 2020, thereby marking a full-blown recession and second consecutive contraction from -6.10% recorded in the previous quarter (Q2 2020).