LCCI
Despite rise in growth and productiveness indices, the Lagos Chamber of Commerce and Industry (LCCI) has acknowledged that the economic system remains fragile going by recurring challenges that proceed to create considerations about prospects for sustainable poverty discount.
Specifically, the chamber famous that continued delay within the passage of 2018 funds, excessive price of operations for companies, insecurity, unfavourable insurance policies, amongst others are main challenges slowing down financial growth.
With an inhabitants growth fee pegged at three per cent yearly, the Chamber urged the necessity for presidency to embrace poverty discount measures.Addressing journalists on the state of the economic system, in Lagos yesterday, LCCI President, Babatunde Ruwase, stated although the nation’s actual GDP grew by 1.92% in This autumn 2017, few sectors are presently contributing to the optimistic GDP numbers, necessitating the necessity to develop different sectors.
“Productivity and growth remains lower than desired and fragile; population growth is high at 3% per annum, raising concerns about prospects for sustainable poverty reduction”, he added.
On funds passage delay, he stated: This is definitely not one of the simplest ways to run the affairs of a nation. The delay within the budgetary course of would additional entrench the vicious cycle of poor funds implementation, particularly the capital element of the funds. The threat is that recurrent spending might be absolutely applied whereas capital tasks undergo the standard implementation deficiency.
“The delay has implications for planning in both the public and private sectors of the economy. Strategic planning for many organizations takes a cue from the budget structure and the policies that come with it. To the extent that the budget is not in place, uncertainty and associated business risks in the economy are heightened. This is surely not good for investors’ confidence, either from a foreign investor’s perspective, or from domestic investors standpoint”.
He recognized the non-oil export section as one of many sectors requiring authorities intervention.Specifically, he acknowledged that exporters are complaining of entry to the Nigeria Export-Import Bank (NEXIM) N500 billion fund.
“Early last year, an export facility was approved by the Central Bank of Nigeria (CBN) and NEXIM. Many applications have been submitted to NEXIM and the Central Bank for processing. We appeal to the CBN and NEXIM is to expedite the action on the disbursement of the facility”, he stated.
Acknowledging authorities efforts in fixing roads by means of the improved capital funds within the 2018 funds, Ruwase expressed fear about the price of logistics which remains very excessive, arising largely from the poor state of the roads and the consequences on transportation and logistics price.
“We demand for a better funding framework for Nigerian roads. The current budget-dependent framework for fundin-g of the roads cannot make the desired impact.“The proposal to set up a Road Fund needs to be quickly revisited and its implementation accelerated. This is the model that has worked in many other jurisdictions and we believe it will work here. The earlier we adopt this model for funding the roads, the better for the economy and the citizens”, he added.