By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has advised that Nigeria needs a positive national orientation to navigate the current economic crisis facing the country.
According to a statement, the President of the chamber, Mr Gabriel Idahosa, made this known in his address on the state of the economy in Lagos yesterday.
He noted that Nigeria’s economy was at a crossroads and needed better direction and clarity.
He then urged the President Bola Tinubu-led administration to come out plain to Nigerians and businesses on the direction of its policies and what near-term achievements are possible.
According to Mr Idahosa, this will build some level of certainty to support business planning and decision-making forward in the country.
“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,” he said.
Speaking on the state of the country’s manufacturing sector, the LCCI president explained that the manufacturing sector remained weak as growth slowed to 1.28 per cent in the second quarter from 1.49 per cent in the first quarter to 2.20 per cent in the corresponding quarter of 2023.
“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.”
“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,” he added.