The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to urgently address the structure of the power sector, especially the transmission segment, to enable it attract the much-needed private sector investment.
Making the appeal in his address on the state of the economy for the first quarter of 2024, in Lagos, the Chamber’s president, Gabriel Idahosa, stated that such investments are needed to bring in relevant financial, technical and management capacity.
The Chamber also urged the government to adopt prudent fiscal policy measures and investment-friendly tax policies that align with the ongoing efforts of the Central Bank of Nigeria (CBN) to tame inflation.
While commending President Bola Tinubu on his recent directive to reduce entourage size for his domestic and international travels by 60 percent, the Chamber, however, urged other arms of government, including state governors, members of the National Assembly and state houses of assembly, to adopt the same level of fiscal discipline.
The Chamber identified high energy cost (cost of diesel and electricity tariff), exchange rate volatility, continuous rise in interest rate, and weak consumer demand as some of the macro-economic factors that militated against the growth of the manufacturing sector in 2023.
“These macro-economic factors are expected to further weigh on the growth prospect of the sector in the short term. Growth in manufacturing is expected to remain weak due to squeezed consumer spending,” the Chamber stated.
The business advocacy group however projected an improvement in the growth of the sector in the medium term due to fuel subsidy removal, which it believes may attract investment in oil refining and other opportunities in the sector.
“It may as well ease price pressures which are expected to boost real wages and increase disposable income,” it stated.
In the agriculture sector, the Chamber appealed to the Federal Government to improve security and intensify the implementation of the national agricultural extension policy with focus on improved and relevant agricultural technologies.
“The Chamber recommends that the government consider fast-tracking the movement of policing from the exclusive list to the concurrent list. This will ensure effective policing of the nooks and crannies of our communities including the farmlands,” it stated.
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