The Association of Bureaux De Change Operators of Nigeria (ABCON), has cautioned against an increase in retirement age.
The Association maintained that the increase in the retirement age works indirectly on the policies that are targeted at reducing the rate of unemployment amongst youth in the country.
In its quarterly economic review report for the third quarter of the year (Q3 2020), ABCON stated that the Federal Government should prepare a post-retirement facility instead of increasing the retirement age.
“Increasing workforce retirement age is counterproductive under conditions of high youth unemployment rate; instead government should prepare a post retirement facility;
“Federal Government should promote policy to ensure that the rate of unemployment amongst youth is reduced to its barest minimum with a view to addressing social unrest.”
Laying more emphasis on the recovery from the severe effect of COVID-19 on the Nation’s Economy, ABCON recommended that government spending should be channeled towards business recovery, poverty alleviation and infrastructure development but structured to give a good mix with monetary policy trust.
In the same vein, ABCON advised the Central Bank of Nigeria (CBN) against pegging of the interest rates and other variables which can lead to malfunctioning of the system.
It suggested that the monetary authority should intervene in selected priority sector through incentives which will allow smooth flow of the economy especially when complemented with fiscal management efforts.
ABCON explained the need for CBN to address the huge exchange rate mismatch in the forex market.
“It is imperative for the monetary authority to actively participate with precision through market level interventions. Volumetric interventions and demand push exchange rate must automatically influence the market in the direction the authority desires.”
It’s no longer news that unemployment is a major problem faced by youth in the country. As devastating as it is to individual and the society, nothing has been done so far to curb this problem. All we have is more violence in the country.
If the government fails to revert its decision and continue on this trend, the increase on the retirement age would not only aggravate youth unemployment, it will also deteriorate productivity and worse the standard of living of the people.