Olajide Fashina, CEO of Olageospatial Global Investment Company (OGIC), has voiced the need for a more comprehensive approach to address the challenges faced by small and medium enterprises (SMEs) and the citizens they employ.
Speaking with Oxygist in Abeokuta, Fashina highlighted the plight of workers in SMEs who are grappling with unprofitable businesses and an inability to pay their employees due to increased costs, notably the rise in fuel pump prices.
He emphasized that while it might be tempting to compare Nigeria's fuel prices with those of neighboring countries, the crux of the matter lies in the earning capacity of individuals, the cost of basic necessities, and the purchasing power of the Naira.
The CEO underscored that the heart of the issue is the disconnect between earning and spending capacity.
Fashina noted that while it's essential to consider exchange rates and international comparisons, the focus should be on ensuring that the average Nigerian's earnings are sufficient to cover their living expenses, education, healthcare, and other basic needs.
He argued that the exchange rate and the value of the Naira directly impact citizens' ability to maintain a balanced and stable life.
Fashina suggested that rather than adding or removing subsidy, the government should concentrate on increasing the purchasing power of the naira, that alone will regulate that.
He proposed that policies should be geared towards boosting local production, creating jobs, and enabling citizens to earn more, thus making essential commodities affordable.
The CEO further stressed that the economic well-being of the people should be the primary consideration, as policies leading to high inflation and increased living costs can result in desperation, depression, and social unrest.
While acknowledging President Tinubu's prompt response to citizens' concerns, Fashina called for a careful examination of the exchange rate and its impact on the earning and living capacity of average Nigerians.
He urged the President to focus on policies that would strengthen the naira, whereby making it possible for citizens to afford more basic needs of life.
Fashina therefore emphasized that aligning the earning capacity with living expenses is crucial for fostering economic stability and harmony within the nation.
His words " The Price of Commodity will not matter if we earn more but in a situation whereby you spend more when you earn nothing or you earn less it will leads to desperation, depression, and social uprising.
"That's the reason why we are calling President Tinubu that the most important thing to us which we think is the most problem is the exchange rate, since Nigeria is a consumable country, and we should quickly go into local production. How do we strengthen the purchasing power of naira, is the most thing Mr President should look into."
