Retirement age increase worsens youth unemployment –ABCON

Retirement age increase worsens youth unemployment –ABCON
ABCON President, Alhaji Aminu Gwadabe

The Association of Bureaux De Change Operators of Nigeria has cautioned the government against increasing the retirement age.

ABCON stated that this would work against policies to reduce youth unemployment in the country.

The association stated this in its quarterly economic review report for the third quarter of 2020.

It advised that the Federal Government should prepare post-retirement facilities instead of increasing retirement age.

The association’s position was against the backdrop of the recent decision of the Federal Government to increase the retirement age of teachers from 60 years 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.

It added that the Federal Government should promote policy to reduce youth unemployment with a view to addressing social unrest.

The association noted that recovery from the severe impact of the 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 advised that government spending should be directed towards business recovery, poverty alleviation and infrastructure development but structured to give a good mix with monetary policy trust.

The association also cautioned the Central Bank of Nigeria against pegging of the interest rates and other variable, stressing that this could lead to malfunctioning of the system.

It recommended that the monetary authority should intervene in selected priority sectors through incentives, adding that this would allow for smooth flow of the whole economy, especially when complemented with fiscal management efforts.

ABCON emphasised the need for the CBN to address the huge exchange rate mismatch in the forex market.

The association stated, “It is imperative for the monetary authority to actively participate with precision through market level interventions.

“Volumetric interventions and demand push exchange rates must automatically influence the market in the direction the authority desires.

“As example, it is illogical to intervene in the market at N380 when open market is moving at N460. Who takes the margin? This is an exchange rate mismatch.

“The solution to the problem is not throwing millstones or blackmail of any sub-sector of the market, the margin ends in one market and is functional to the volume to satisfy market deficit in supply.”

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