As new naira notes scarcity persists within the seven days which President Muhammadu Buhari pleaded to resolve the crisis, the Nigeria Employers’ Consultative Association (NECA) has predicted death of surviving Small and Medium Enterprises (SMEs) due to the cash crunch.
The Director-General, NECA, Mr Wale Oyerinde, said with the rising inflation and reduction in purchasing power of consumers, the nation could witness the death of many small and medium-scale businesses as well as the shutdown of many large businesses.
In a letter titled, ‘Save the economy from inherent economic contradictions: NECA urged government,’ to immediately halt the scarcity of peoples hard earned money.
NECA further averred that the rising energy cost, inadequate foreign exchange, high operating cost amongst others was impacting businesses negatively. He lamented that Nigerians were grappling with limited availability of cash, scarcity of petrol. He said, “As Nigerians grapple with limited availability of cash, they are at the same time confronted with scarcity of petrol, a product for which trillions of naira is being expended as subsidy, while businesses also continue to face increasing energy cost, inadequate forex, high operating cost amongst others.
‘With the rising inflation and real reduction in purchasing power of the citizens, the nation could be witnessing the death of many small and medium scale businesses and also shutting down of many otherwise large businesses.” Oyerinde said the current situation portends grave danger for the economy, adding that Nigerians were not able to access the new notes.
