Covid-19: How Nigerian government can avert mass layoffs by OPS - NECA
…after Atiku’s son tested positive …Aisha Buhari calls for total shutdown
The Nigerian government must urgently initiate specific and direct business sustainability schemes to save organised businesses from the debilitating effect of the Covid-19 pandemic to avert looming mass layoffs of workers.
This is the position of Nigeria Employers’ Consultative Association (NECA), which says such measures are already being taken in other countries to sustain jobs.
The International Labour Organisation (ILO) has projected that over 22.7 million jobs could be lost globally as a result of the Covid-19 pandemic.
In Nigeria, however, even before the outbreak of Covid-19, the unemployment situation had been worrisome, and NECA believes it does not have to get worse.
Timothy Olawale, directorgeneral of NECA, speaking in Lagos, says while the body commend the efforts of the Central Bank of Nigeria (CBN) for intention to provide palliatives and stimulus to businesses, “we make bold to say that much more could be done to keep businesses afloat and reduce the risk of massive job losses.”
Olawale notes that governments in other climes have taken specific measures to protect local industries and guarantee job security for their citizens.
“In Australia, government provided tax-free cashflow for employers. Up to $25,000 is available to help pay wages or for investment to protect against downturn in activity.
“This is excluding wage subsidy and instant asset writeoff for businesses with turnover of less than $500 million. In China, SMES were exempted from payment of pension contributions, unemployment and work injury insurances, while same had been halved for large companies from February to April 2020, and also extension on the tax reporting period; import goods and materials were exempted from import tax, among other palliatives.”
Speaking further, the NECA director-general states that Cook Island provided an economic stabilisation fund consisting NZ56 million to support business continuity. it included provision of wage subsidy at the minimum rate for up to three months while in denmark, the government is providing Pay Compensation Scheme to companies with the risk of laying off in order to retain jobs.
He notes that under the scheme, which will last for three months, the state will cover 75% of the salaries of employees paid on a monthly basis who would otherwise have been fired, with companies paying the remaining amount.
He further notes that for hourly workers covered by the agreement, the government will cover 90% of their wages, up to 26,000 Danish kroner (£3,162) per month.
He also points to France, where the government proposed that water, gas and electricity bills as well as rents will be suspended for companies in difficult situation.
Similarly, fixed costs will also be reduced by the saving of rents, especially for businesses that have to closed, in France, while in the Ireland government instituted a payment of €305 per week for two weeks for those self-isolating and for those diagnosed with the virus, the payment will be made for the duration of illness.
“This is separate from the payment of €203 per week for six weeks (Covid-19 pandemic unemployment payment) available for affected workers (including self-employed) who have been impacted but not ill or self-isolating,” the director-general says.
He also makes reference to Italy, where the government, among others, initiated the suspension of payments of taxes and social security contributions, while the Japanese government pays 8,330 yen per day for each worker who misses work, while selfemployed people, as well as freelance workers who meet certain conditions, will receive a uniform 4,100 yen per day.