
Following the admission of a crossroads with policy choices of President Bola Tinubu-led administration, the Lagos Chamber of Commerce and Industry (LCCI), has suggested that Nigeria needs a positive national orientation to navigate the stormy waters it finds itself currently in economic quagmire.
Specifically, the LCCI urged the Tinubu-led administration to come out plain to Nigerians and businesses on the direction of its policies and what near-term achievements are possible, so that this will build some level of certainty to support business planning and decision-making forward in the country.
To LCCI, there seems to be no clear-cut clarity in the Tinubu-led administration’s economic policies for the nation’s economy in the past 18 months of this government, as it has been lamentation upon lamentation of hardship and more hardship by Nigerian populace, which is not good for economic prosperity and good well-being of the citizens.
President of the LCCI, Mr. Gabriel Idahosa, made this known in his address on the state of the economy in Lagos, yesterday that Nigeria’s economy was at a crossroads begging for better direction and clarity in all ramifications currently, with the back and forth inconsistent policy summersaults.
Idahosa said: “At a crossroads with policy choices, Nigeria needs a positive national orientation to navigate the stormy waters we find ourselves in today.
“We therefore recommend that the government come plain to Nigerians and businesses on the direction of their policies and what near-term achievements are possible.
“This will build some level of certainty to support business planning and decisions.”
Speaking on the state of the country’s manufacturing sector, the LCCI president explained that manufacturing sector remained weak as growth slowed to 1.28 per cent in Q2 from 1.49 per cent in the first quarter to 2.20 per cent in the corresponding quarter of 2023.
He added, “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.”
According to him, “In most of our recent statements to the media, we have consistently recommended the need for fiscal stimulus and non-cash interventions to cushion the burdens unleashed through the tight monetary stance of the government in the past 18 months.
“In the situation we find ourselves in, we urge the government to stay focused and more vigorous regarding the ongoing interventions like removing some taxes, the transition to Compressed Natural Gas (CNG) mobility, the Crude for Naira scheme, and the suspension of some import duties.
“The CNG mobility initiative must be supported with CNG refuelling stations nationwide and credit facilities to support quick conversion and usage.”
In addition, Idahosa added, “Removing VAT on diesel and cooking gas is a bold step towards reducing the cost of living for Nigerians, but it is only the beginning.
“As we look to the future, the transition to Compressed Natural Gas mobility offers an opportunity to make energy more affordable, reduce emissions, and create jobs.”