LABOUR: 2022 terrible for busines, 2023 not likely to be better—NECA

In this piece, the Director-General of Nigeria Employers’ Consultative Association, NECA, Wale-Smatt Oyerinde, reviewed year 2022 and expectations for 2023, declaring that while 2022 was a terrible year for business, things may not change for better in 2023
Excerpt:

Business issues of 2022
The year 2022 was quite unique in view of the many issues that characterized it. Some of these issues were local in nature and peculiar to Nigeria, while others were global, with dire consequences for us as a nation. As the nation struggled to recover from the COVID-19 pandemic which inflicted leadership and sustainability challenges across the globe, businesses were forced to operate under excruciating circumstances, made worse by inherent systemic contradictions.
Firstly, the Russia-Ukraine war changed the narratives from recovery from the COVID-19 effects to sustainability, in view of the consequential effects of the War. The needless war caused a major increase in the cost of energy across the world, with Europe greatly affected. The war also heightened the disruption in global value chain which further compromised business sustainability. The impact of the war on energy and food distribution remained a concern for not only businesses but also global leaders. Furthermore, the withdrawal of liquidity in the world economy prompted the increase in interest rates and the consequential effect on nations with high debts, including Nigeria. It can be rightly adduced that the war has further deepened the level of poverty and caused a\ spike in inflation rate.
Comparatively and according to the Economic Intelligence Unit, EIU, and other expert sources, year 2022 was more tepid than 2021.

The GDP growth rate was 2.9 percent as against 3.6 percent in 2021; average power output (MWh/h) was 4.735 as against 4.559 in 2021; average inflation rate, 16.5 percent against 11.5 percent in 2021; unemployment rate was 35.5 percent against the 2021 figure of 33 percent; average oil production rate (mbpd) of 1.21mbpd against the 2021 figure of 1.67mbpd; external reserve of about US$36.9billion as against US$40.5billion in 2021, among many other indices.