The Lagos Chamber of Commerce and Industry (LCCI) don dey call on the federal government to quickly adopt fiscal policy measures to drive Nigeria’s non-oil exports and foreign exchange earnings. According to Gabriel Idahosa, the president of LCCI, strong fiscal policies wey promote export and local manufacturing are very important.
Idahosa talk dis during the chamber’s quarterly press conference on the state of the economy in Lagos. He say, “We urge the government to adopt prudent fiscal policy measures and create a business environment that promotes non-oil export growth and competitiveness.” He add say dis will help boost export earnings, diversify foreign exchange earnings, raise domestic revenue, increase business productivity, and improve citizen welfare.
He also talk about the need for the government to address the high production costs wey dey affect manufacturers. “The increase in production costs could lead to higher prices for goods and services, potentially affecting the competitiveness of Nigerian products in Africa and global markets,” he explain.
LCCI president emphasize the need for massive investment in infrastructure, reviving government-owned oil refineries, and reducing the bottlenecks in fuel supply to improve real sector productivity. He also mention the issues of high interest rates, multiple taxation, and volatile naira wey dey limit the country’s industrialisation drive.
According to data from the National Bureau of Statistics, the manufacturing sector growth remain weak, slowing down to 1.28 percent in the second quarter from 1.49 percent in the first quarter. Idahosa say, “Recent manufacturing indicators reflect a burdened production sector bedevilled with the high cost of production driven by high interest rates, a weak currency, weak consumer demand as inflation erodes consumers’ purchasing power, and costly logistics due to high energy costs.”
LCCI also recommend that the monetary and fiscal authorities focus on addressing supply-side deficiencies to manage high inflation. Idahosa stress the importance of increasing food production and reducing insecurity in farmlands to achieve dis.
He advocate for concessionary rates lower than the Central Bank of Nigeria (CBN) prevailing Monetary Policy Rate (MPR) for Micro, Small, and Medium Enterprises (MSMEs) to support their operations and production lines. He note say high lending rates make it challenging for businesses to access credit, especially for Small and Medium Enterprises (SMEs) wey be the backbone of the economy.
