Formulate medium-term growth plan to boost local production, LCCI urges FG

By Joy Obakeye

The Lagos Chamber of Commerce and Industry (LCCI) has said fiscal and monetary authorities should develop a medium-term growth plan hinged on boosting local production, supporting ease of doing business and attracting private investment.

The LCCI President Dr Michael Olawale-Cole disclosed this at the LCCI 134th Annual General Meeting (AGM) in Lagos.

He projected that the Nigerian economy will end the year with a positive growth of three to four per cent.

According to him, the chamber’s projected growth required the fiscal and monetary authorities to promote policies to encourage private capital inflows to the economy.

He further explained that “the authorities must also develop physical and soft infrastructure, business-friendly regulatory policies, economic diversification and employment generation, among others.”

Speaking on the country’s Gross Domestic Product (GDP) third-quarter growth decline of 1.78 per cent year on year, he said the development was reflective of the challenging economic conditions.

“It should be noted that emerging shocks, threats, and risks have created fears of slowing growth and even recession in the coming quarters going into the New Year 2023.

“With the worsening security challenges in some parts of the country, foreign exchange scarcity, and high energy costs, growth may shrink as production bases come under siege, and supply chains disrupted leading to scarcity of goods in the markets.

“With worsening security perception about the country, and the coming of a new government, foreign investors are not interested in bringing in Foreign Direct Investments (FDIs) to Nigeria at this time.

“We have, however, in the year, advocated for a well-coordinated synergy between the fiscal and monetary authorities, as well as members of the private sector in navigating the uncertain economic terrain.”

“We would continue to engage with the government in creating an enabling business environment where the private sector is empowered to create jobs and generate revenue for the government,” he said.

“These structural factors will continue to mount pressure on domestic consumer prices,” he said.

Addressing the power sector, the LCCI president noted that the frequent collapse of the national grid showed that it could not supply sufficient power to meet the electricity demand of Nigerians.

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LCCI president added that the sector recorded issues of vandalisation, disrupted gas supply, the inability of distribution companies to take up generated power and the challenges of achieving 100 per cent metering for power consumers.

“With the cost of diesel at record levels and persisting poor power supply, businesses are running on unsustainable costs and producing at uncompetitive prices.

“This can lead to job losses if the output is constrained due to the unbearable cost of production.

“If not quickly tackled, these challenges will likely subdue the GDP growth potential and projections for 2022.

“The most sustainable solution to Nigeria’s power shortages is the transition to renewable energy and the decentralisation of the national grid,” he said.