Your overly aggressive revenue posture killing businesses, LCCI warns federal government agencies

•Says $1trn economy dream may remain a dream without power

The Lagos Chamber of Commerce and Industry (LCCI) has warned government agencies in the country over their overly aggressive revenue posture, which the Chamber believes has continued to harm many businesses and push them to the precipice.

The chamber’s President, Gabriel Idahosa, while giving the warning during the chamber’s First Quarterly Review of the State of the Nation’s Economy, also warned that the federal government’s plans of hitting $1Trillion economy by 2030 may also remain a dream without fixing the power sector, and make it perform optimally.

The group called on the agencies of government to refocus their mandates from revenue collection to robust regulation and facilitation, noting that an overly aggressive revenue-driven posture remains detrimental to stakeholders, especially SMEs, importers, and exporters.

On the plight of the nation’s Micro, Small, and Medium Enterprises (MSMEs), the chamber noted that MSMEs, which should have been the backbone of the nation’s economy, still continue to grapple with severe operational challenges, including insecurity and unreliable power supply.

It added that many small businesses have shut down or reduced staff strength, due to poor power supply, high electricity tariffs and rising materials.

The chamber, therefore called on the relevant authorities for immediate government intervention, through electricity subsidies, proper refund mechanisms, and regulatory clarity on energy billing, to protect the backbone of Nigeria’s economy.

“Without fixing the power sector to perform at optimal levels, our aspiration to achieve a $1 trillion economy may remain a dream with no reality. We urge the government to remain committed to commercial partnerships, signed with various renewable energy investors, by granting them required licenses, providing a robust and competitive regulatory environment, and driving local content provisions in those energy projects.

“With the states now empowered to generate power in their domains, we expect to see more states becoming aggressive like we already see in a few states. With more states depending less on the national grid, we would generate more power nationwide and improve power supply in the medium to long term,” the chamber added.

On the country’s debt profile projected to hit over N157 trillion by December 2025, the chamber argued that while there are noticeable improvements in the government’s fiscal situation; it however expressed concerns about government’s new borrowings, especially those borrowings that are not for productive investments.

It therefore, advised the government on the need to revisit Nigeria’s debt management plan with the objective of cheaper sources of debt through better use of the national assets.

Speaking on food security and inflation, the chamber called for urgent concerted efforts; since the challenges are grave. It noted that despite some improvements, food prices remain high, and millions of Nigerians continue to experience food insufficiency.

“We need to scale up food processing to meet the demand for finished food products, some of which are hitherto being imported. The Special Agro-Industrial Processing Zones (SAPZ) initiative should be well-equipped to support the production of finished food products across the country.

“We call on federal agencies to work closely with the states to control the expected floods projected to disrupt many states this year. We should be proactive in handling flood alerts to prevent the destruction of farmlands and loss of crops,” it added.

Akin Adewakun