Budget 2020 may precipitate industrial unrest, NECA warns

By Toba AgboolaThe Nigeria Employers Consultative Association (NECA) has warned that the budget 2020 might instigate massive retrenchment of workers and labour unrest in the country.This development, it said, casts doubts over the ability of the budget to ensure growth and job creation as envisioned by the Federal Government.Speaking with The Nation, its Director-General, Timothy Olawale, said the document was not clear on the inclusion of the consequential adjustment of the national minimum wage in the Appropriation Bill.This omission, he said, might lead to more rounds of strike in the coming year by labour.While urging the National Assembly to expedite action to return the budgetary process to a January December fiscal year as enshrined in the constitution, he cautioned that the oil benchmark in the budget, which proposes $57 per barrel, reflected a reduction from $60 per barrel in the year approved the budget.Olawale said the benchmark is just slightly above the current average price of $58 witnessed in eight months of this year.He noted that any further impact on the global economy could result in the crash of oil prices with reduced demand globally due to slow down in the global economy, as forecast by the International Monetary Fund (IMF), and World Bank in their reports.He advised Federal Government to commence the sale of government non-oil assets and gradual improvement in non-oil revenue.To manage the budget efficiently, he sought a reduction in the cost of governance, promotion of efficiency and accountability, and transparency of the budget process.With capital projects estimated at N2.46 trillion, Olawale said the priority should be given to on-going projects before new ones are started and a sound monitoring and evaluation mechanism clearly defined for successful implementation of the budget.On the increase in Value Added Tax (VAT), he maintained the earlier position that it would erode some of the gains recorded in economic growth.He informed that with 85 per cent of VAT collection going to states and local governments, there was the need to focus closely on utilisation of the additional funds accruing to states and local governments for development.
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