In its quarterly economic review report for the third quarter of 2020, the Association of Bureaux De Change Operators of Nigeria (ABCON) has cautioned the Federal Government against increasing the retirement age.
ABCON stated that increasing the retirement age would work against government policies to reduce youth unemployment in the country. It therefore advised that rather than increasing the retirement age, the Federal Government should prepare post-retirement facilities.
Recently, the Federal Government decided to increase the retirement age of teachers from 60 to 65 years.
“Increasing workforce retirement age is counterproductive under conditions of high youth unemployment rate, instead government should prepare solid post retirement facilities,” ABCON stated.
The association noted that recovery from the severe impact of COVID-19 pandemic on the nation’s economy would be determined by a structured and people-oriented policy aimed at resolving the macroeconomic imbalance arising from the disruptions. It therefore added that the Federal Government should promote the policy to reduce youth unemployment with a view to addressing social unrest.
While advising that government should be directed towards business recovery, poverty alleviation, and infrastructure development, the association also cautioned the Central Bank of Nigeria against pegging of the interest rate and other variables, stressing that it could lead to malfunctioning of the system.
ABCON recommended that the monetary authority should intervene in selected priority sectors through incentives with emphasis on the need for the CBN to address the huge exchange rate mismatch in the forex market.