LCCI expresses fear of another recession in 2023

Leading advocacy voice for the organized private sector, the Lagos Chamber of Commerce and Industry (LCCI) has expressed fear that the slow growth of the country’s Gross Domestic Product (GDP), and the nation’s challenging business environments might lead to recession in 2023, if the right fiscal and economic policies are not in place.

The President of the Chamber, Asiwaju Michael Olawale-Cole, raised the alarm while presenting his report at the 134th edition of the Chamber’s Annual General Meeting (AGM) held in Lagos, over the weekend.

Reviewing the nation’s economic and business environment in the outgoing year 2022, Cole argued that the third quarter GDP figure, indicating a 2.25 percent growth, in the year under review, was a slowdown in growth, compared with 4.03 percent growth recorded in Q3 of 2021.

Cole noted that that the worsening security challenges in some parts of the country, forex scarcity, and high energy costs, might result in growth shrink; since production bases had continued to come under siege, and supply chains disrupted, thereby leading to scarcity of goods in the markets.

He added that the worsening security perception about the country, and the coming of a new government, might also discourage investors from bringing in the much-needed foreign direct investments (fdi) into the country, at this time.

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The LCCI boss therefore harped on the need to ensure that fiscal and monetary sides of the economy promote growth-enhancing and confidence-building policies that would encourage private capital flows into the economy.

“Fiscal and monetary authorities must develop a medium-term growth plan anchored on boosting local production, supporting ease of doing business, attracting private investment, developing physical and soft infrastructure, business-friendly regulatory policies, economic diversification, and employment generation among others,” Cole stated.

While attributing the slowdown in growth to the impacts of the nation’s challenging economic conditions, the LCCI’s boss however expressed optimism of the annual GDP growth closing on a positive note for 2022.

The LCCI boss also commended the federal government, on its decision to launch the National Development Plan (NDP) for 2021 to 2025, to succeed the Economic Recovery and Growth Plan (ERGP) which expired in December 2020. He however expressed regrets that the administration had not been able to finance the plan due to its inability to resolve its debt crises and revenue challenges.