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Tag: Lagos Chamber of Commerce and Industry (LCCI)

  • 2018 Budget: LCCI lauds 30.8% capital allocation

    2018 Budget: LCCI lauds 30.8% capital allocation

    The Lagos Chamber of Commerce and Industry (LCCI) has commended the Federal Government for allocating 30.8 per cent of the 2018 Federal Budget to capital projects.

    The Director-General of LCCI, Mr Muda Yusuf, gave the commendation in a statement on Thursday in Lagos.

    President Muhammadu Buhari presented the N8.6 trillion 2018 Federal Budget to the National Assembly on Nov. 7.

    The N8.6 trillion 2018 Budget represents a 16 per cent increase in nominal term over the 2017 Budget of N7.44 trillion.

    “We welcome the priority accorded to infrastructure in the budget proposal focusing on roads, railways, power projects, water projects and second Niger bridge.

    “Reference was made to the embarrassing state of the access to the ports and the public private initiative to fix it.

    “We welcome the decision to connect the Lagos-Ibadan standard gauge to the Apapa and the Tin-Can Island port.

    “But time is of the essence.

    “There is an urgent need to save the private sector and investors from the agony of persistent gridlock at the Apapa and Tin-Can ports which accounts for over 70 per cent of import and export cargo in the country,” he said.

    Yusuf said that it was imperative to formulate policies to mobilise private sector capital into the infrastructure space.

    He said that consideration should be given to further reduction in cost of governance and scaling up remittances of surplus from MDAs to the coffers of government.

    The LCCI boss also said there was the need to refocus government’s tax drive from direct to indirect taxes in line with the National Tax Policy.

    “A disproportionate focus on direct taxation is detrimental to investment and hard work.

    “There is also need to curb the growing incidence of multiplicity of taxes and levies on businesses at all levels of government,” he said.

    According to him, as the budget appropriation process progresses, there is need for clarifications on the status of budgetary appropriation for petroleum subsidy both for the current fiscal year and 2018.

    “It is also necessary to throw some light on the status of the estimated N800 billion debt to oil marketers.

    “Investors in this sector would like to see a sustainable framework for the management of petrol subsidy,” Yusuf said.

    He also called for clarification on the status of Asset Management Corporation of Nigeria (AMCON) debts estimated at about N5 trillion within the debt management framework of the government.

    Yusuf said that clarification on the framework for payment of contractors’ arrears which cuts across various MDAs should be provided.

    “The non-payment of contractor’s arrears has taken a huge toll on many contractors.

    “The amount involved has been estimated at over N1 trillion,” he said.

    The LCCI boss appealed to the National Assembly to ensure speedy consideration of the appropriation bill toward normalising the budgetary cycle and bringing greater predictability to the economic management process.

    NAN

  • EU to enhance SMEs growth in Nigeria

    EU to enhance SMEs growth in Nigeria

    The European Union ( EU ) says it will enhance Small and Medium Enterprises ( SMEs ) in Nigeria through forging of linkages and partnerships with business innovators.

    Mr Jean-Jacques Lennon, the European Union Senior Manager, made this known in an interview at the ongoing Lagos International Trade Fair ( LITF ) in Lagos.

    Lennon said that some EU initiatives were seeking to assist SMEs to access international markets and enhance their growth potential.

    According to him, EU sees great prospects in Nigeria’s economy and wants to seize the business opportunities provided on the platform of the Lagos International Trade Fair ( LITF ) to upscale business activities for SMEs.

    The EU officially got a pavilion and brought exhibitors to the fair for the first time in the 31 years of the fair.

    He said Nigeria was listed as one of the 11 countries that European Union, through its SME Instrument Overseas Trade Fairs Programme, would showcase innovations and commercialise its technology.

    Lennon said that the fair was identified as a veritable platform where investors and innovators from EU could synergise toward boosting economic growth.

    He said that some of the technologies exhibited by nine EU innovators would improve activities in agriculture, waste management, weather forecast, renewable energy, food safety and genetic services.

    Lennon urged the Federal Government to continue with the policies and reforms that would create an enabling environment to attract investments into the country.

    NAN reports that the LITF is an annual event organised by the Lagos Chamber of Commerce and Industry ( LCCI ).

    It began on Nov. 3 and end on Nov.12.

    NAN

  • Lagos trade fair will enhance economic growth – Ambode

    Lagos trade fair will enhance economic growth – Ambode

    Gov. Akinwunmi Ambode of Lagos State says the 2017 Lagos International Trade Fair ( LITF ) will be an avenue for collaboration toward enhancing economic growth.

    Ambode, represented by Dr Idiat Adebule, Deputy Governor of Lagos State, made the remark on Friday, at the opening of the fair with the theme: “Promoting Industrialisation for Economic Recovery and Sustainable Growth.”

    The fair is an annual event organised by the Lagos Chamber of Commerce and Industry ( LCCI ).

    Ambode noted that the previous edition of the event was held amid economic recession, but now, the economy had not only exited recession, but had received positive global rating.

    According to him, the rating has shown an improvement in the country’s Ease of Doing Business ranking of the World Bank.

    “This positive development is the cumulative effect of policies and reforms being implemented diligently to ensure a conducive environment for business growth and development,” he said.

    The governor said the large turnout of participants, networking events and volume of transactions recorded yearly are testaments of the trade fair’s relevance in boosting national economic growth and recovery plans.

    In her comments, Mrs Nike Akande, President of LCCI, said that the theme of the fair was to underscore the critical importance of industrialisation in the nation’s economic recovery and diversification process.

    She said that it would also draw attention to the imperative of creating an enabling environment to attract new investments, grow existing ones and the necessity to build a sustainable economy.

    “There is perhaps no better time to do this than now. This is the time to focus more on the non-oil sector for diversification.

    “The non-oil economy is more inclusive and integrated. It is also more growth-oriented, characterised by high economic linkages, stable, and above all, more sustainable,” she said.

    According to her, appreciating the dynamics of the economy will enable government to construct policies that will ensure sustainable economic development.

    Akande said that government’s priority should be to fix impediments to productivity and competitiveness in the economy.

    She said that tackling the constraints would encourage domestic investment, attract foreign capital and facilitate the realisation of the objectives of the Economic Recovery and Growth Plan (ERGP) of the government.

    Chief Alaba Lawson, President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), urged the government to implement infrastructural development measures, toward improving all sectors of the economy.

    She said that doing this would make the country take its rightful position as not only one of the largest economies in Africa, but also the most industrialised one.

    The 31st edition of the Lagos International Trade Fair ends on Nov. 12.

    NAN

  • Automotive policy biting harder on economy – LCCI

    Automotive policy biting harder on economy – LCCI

    The automotive policy is biting harder on the economy and must be urgently reviewed, the Lagos Chamber of Commerce and Industry ( LCCI ) said on Monday in Lagos.

    The Director-General of LCCI, Mr Muda Yusuf, who made the observation in an interview, said that the review was necessary for facilitated economic growth.

    Yusuf said that the policy, which raised tariff on imported cars from 20 per cent to 70 per cent, had put the cost of vehicles beyond the reach of many individuals and corporate bodies

    “There is the need to act quickly to reverse the unsavory situation,” he said.

    The automotive policy was introduced in 2013 as a strategy to reduce importation of vehicles and boost the capacity of domestic vehicle assembly plants.

    “The automobile sector was hit by the double shock of currency depreciation and a hike in tariff from 20 per cent to 70 per cent (in the case of new cars).

    “Whereas, there is very little that can be done about the currency depreciation, a great deal can be done about the policy, which is a creation of government,” Yusuf said.

    Yusuf said that years into the implementation of the policy, much progress had yet to been made.

    “The affordable vehicles promised at the inception of the policy are yet to be seen. The economy has suffered incalculable consequences and shocks as the cost of vehicles reached levels that are unprecedented in the history of the country.

    “Virtually all aspects of our economic and social lives have been adversely affected by the situation because over 90 per cent of the country’s freight and human movement are done by road, which implies heavy dependence on cars, commercial buses and trucks.

    “Manufacturers and other real sector investors suffer from sharp increases in haulage cost because of the high cost of trucks; school buses have become unaffordable by many institutions.

    “Many hospitals cannot afford new ambulances; many corporate organisations have drastically cut down on their fleet. Car ownership is now completely beyond the majority of the middle class,’’ he said.

    He said that the consequences of the policy on the economy and welfare of citizens were immeasurable.

    According to him, the cost of vehicles rose by between 100 per cent  and 400 per cent due to the policy.

    “ A new car of 1.8-litre engine capacity now costs as high as N18 million;  two-litre engine capacity costs N20 million and a 3-litre new Japanese car costs as high as N30 million.

    “A 30-seater bus costs about N45 million and an 18-seater bus costs N29 million.

    “Not many investors and citizens have the capacity to absorb these outrageous prices.

    “Even big corporate organisations are now buying used vehicles. This scenario is most inappropriate for an economy that is heavily dependent on road transportation,” he said.

    Yusuf added that the policy had caused loss of maritime business and increased smuggling due to high import duty and levy with a huge duty differential compared with those of neighbouring countries.

    He said that the policy also caused huge loss of Customs revenue due to reduction in vehicle importation.

    The director-general also said that the policy resulted in increased cost of transportation which affected all sectors of the economy.

    “Import duty on commercial vehicles and used cars should be reviewed downwards to 20 per cent.

    “Complete Knocked Down ( CKD ) and Semi Knocked Down ( SKD ) should all attract zero duty,” the LCCI boss advised.

    According to Yusuf, the government should grant further tax concession and waiver to assembly plants and retain incentives for machineries and tyre industries as contained in the policy.

    Yusuf said that similar incentives should be extended for local production of vehicle spare parts.

    He urged the government and its agencies to encourage patronage of locally assembled vehicles to boost growth of the industry.

    Yusuf said that review of the policy would restore jobs in the automobile industry and boost activities in the maritime sector.

    NAN

  • Economy to lose N150bn daily to PENGASSAN, NUPENG strike – LCCI

    Economy to lose N150bn daily to PENGASSAN, NUPENG strike – LCCI

    The Lagos Chamber of Commerce and Industry ( LCCI ), has warned that the economy would lose an estimated N150 billion daily, if the proposed strike by PENGASSAN and NUPENG is not averted.

    The Director-General of LCCI, Mr Muda Yusuf, disclosed this in an interview on Monday in Lagos.

    Yusuf said that it would not be a good development for an economy that was just emerging from recession.

    The two unions had threatened to embark on an indefinite strike over delay in the payment of N800 billion subsidy arrears to oil marketers.

    Yusuf urged the Federal Government to engage the unions and propose a credible payment plan to settle the arrears.

    He noted that the consequences of the proposed strike would be severe because of the strategic and critical nature of the oil and gas sector.

    “It would paralyse the chain of logistics in the economy as economic activities are driven largely by road transportation, both for commuting and freight.

    “It will impact on revenue as the upstream sector would be affected as well. It would impact the power sector which is largely powered by gas,“he said.

    The LCCI boss noted that the fuel subsidy phenomenon had become a recurring distraction in the management of the country’s economy.

    “It is regrettable that government has over the years got itself entangled in a problem which should not have arisen in the first place,“he said.

    He alleged that the country’s economy had suffered serial scandals and monumental corruption in the oil and gas sector because of the phenomenon of petrol subsidy.

    “We have consistently argued that the government should completely decouple itself from the business of importation, refining, transportation and retailing of petroleum products.

    “This arrangement has created considerable distortions and stagnated private investment in the downstream sector because these are enterprises that the private sector is best suited to manage,“he said.

    Yusuf said that government has no business fixing prices and subsidising the players.

    He said that in spite of  the monumental problem  the economy had from the subsidy regime, government has not taken urgent steps to put an end to price fixing for PMS.

    “The economy cannot sustain this arrangement. The current debt of N800 billion is 151 per cent of the total capital allocation for the Federal Ministry of Works, Power, and Housing in the 2017 budget.

    “It is 1,568 per cent of the capital allocation to health; it is 305 per cent of the capital allocation to Federal Ministry of Transportation; and 1,600 per cent of the capital allocation to education.

    “This raises vital questions about the optimality and efficiency of resource allocation and utilisation by government,” he said.

    He called for speedy passage of the Petroleum Industry Bill ( PIB ), adding that it will help to normalise the oil and gas sector.

    Yusuf urged the government to replicate the telecoms sector model in the oil and gas industry, adding that it would free resources for investment in critical infrastructures like power, roads, the railway, health and education sector.

    He stressed that the model would improve product availability, eliminate fuel queues, and create more jobs for the teeming youth in the downstream oil sector.

    NAN

  • LCCI to engage Fashola on power sector

    LCCI to engage Fashola on power sector

    The Lagos Chamber of Commerce and Industry (LCCI) is set to hold a dialogue targeted at proffering solutions to challenges in the nation’s power sector.

    According to a statement issued by the chamber on Monday, the dialogue is to hold on Thursday in Lagos.

    The statement was issued by the Director-General of LCCI, Mr Muda Yusuf.

    It said that the dialogue was part of the chamber’s public sector engagement programmes for the growth of the nation’s economy.

    “The Minister of Power, Works and Housing, Mr Babatunde Fashola, will attend this dialogue session as the special guest of honour.

    “It will be a platform for the minister to intimate Nigerians about ongoing projects and efforts of government at solving the energy/power debacle.

    “The forum will enable stakeholders to deliberate on key aspects of the privatisation of the power sector, the role of  distribution companies, generation companies, government and all categories of consumers in achieving a successful reform in the sector,” it said said.

    It added that some experts in the sector would be present at the dialogue to engage the minister.

  • LCCI urges NASS to guard against loss of investors’ confidence

    LCCI urges NASS to guard against loss of investors’ confidence

    The Lagos Chamber of Commerce and Industry (LCCI) has urged the National Assembly to be cautious in its oversight and investigative role, to avoid economic disruption and loss of investors’ confidence.

    Mr Muda Yusuf, Director-General of LCCI, made the appeal in a statement on Monday in Lagos.

    He said that allegations and petitions received by the national assembly about infractions by the Private Sector should be properly verified for credibility, before presenting such to the media.

    “The most recent of such public pronouncements was the alleged N30 trillion revenue loss, and the allegedly missing 288 vessels by the Senate Joint Committee on Customs, Excise, Tariffs and Marine Transport.

    “Some 63 firms were accused of complicity in the alleged scam. These are grave allegations that needed to be subjected to proper scrutiny, before making them public issues.

    “Their implications for the nation’s image and foreign investors’ perception are severe.

    “The chamber believes and promotes the ideals of high ethical standards in business and would not support infractions against statutory laws by private sector entities.

    “However, we would like to see a legislative/private sector interface characterised by mutual respect, fairness, and courtesy,” Yusuf said.

    According to him, listing corporate organisations in the media over allegations have considerable reputational costs and weighty consequences for the brand equity of such organisations.

    He noted that frequent summons of organisations by the legislature had significant financial implications to organisations not domiciled in Abuja, in terms of costs of flights, hotels and other logistics for appearing before the national assembly.

    “The Executive time committed to appearance before committees of the national assembly is enormous, especially since most of the committees would insist that appearance should be at the level of the CEOs of the companies.

    “There is need to streamline the summons and public hearings to avoid duplication and overlap between the Senate and the House of Representatives.

    “It is also imperative for the leadership of the national assembly to vet the summons by its committees to ensure efficiency, cost effectiveness and optimisation of executive time committed to the public hearings.

    “This is important when we realise that we have 89 Standing Committees in the House of Representatives and 59 Standing Committees in the Senate,” he said.

    The LCCI boss said that statutory agencies of government were often custodians of some information that the private sector was required to provide support to legislative investigations.

    “It is more cost effective to access this information from these agencies of government.

    “Matters that can be investigated by the statutory agencies of government such as the Judiciary, the EFCC, the Independent Corrupt Practices and

    Other Related Offences Commission (ICPC), the Federal Inland Revenue Service (FIRS) and the National Industrial Court, the Nigeria Customs Service (NCS), should be referred to such institutions.

    “These bodies have better competences, capacities, and structures for investigation of infringements of the law.

    “This would enable the National Assembly focus on its core duties of representation and lawmaking,” he said.

    Yusuf said that the chamber appreciated the role of the senate in enacting enabling laws and review of obsolete legislations toward creating an enabling environment for investors.

    According to him, the economy needs investors to boost job creation and accelerate the economic recovery process, adding that the Economic

    Recovery and Growth Plan (ERGP) deliverables are anchored largely on the private sector.

    He, therefore, urged the national assembly to align with the plan toward reducing avoidable distractions to investors in the economy.

  • NBS wins 2016 Best Public Institution Award

    NBS wins 2016 Best Public Institution Award

    The National Bureau of Statistics (NBS) has been awarded the Best Public Institution Award, 2016 in Nigeria by the Lagos Chamber of Commerce and Industry (LCCI).

    The NBS stated this in a statement issued by the Statistician- General of the Federation, Dr Yemi Kale on Tuesday in Abuja.

    Kale said that the award presented by the President of LCCI, Dr Nike Akande, was received on behalf of the management of NBS by him.

    According to him, the Best Public Institution Award category is among other categories of awards given at the award ceremony.

    Kale said the award was an outcome of a painstaking selection process from numerous entries received for the award category and backed by feed backs from industry and market intelligence.

    The statistician-general said he was delighted about the award and expressed his appreciation to the entire staff of NBS.
    Kale emphasised that the award was a reward of their tireless efforts in ensuring that quality data were produced.

    He thanked the management of LCCI for carrying out a transparent process which led to the selection of NBS for the award.

    Kale also expressed his appreciation to Nigerians who massively voted for NBS during the selection process of the award and assured them of reliable, timely, comprehensive and accurate data for national development.

    The News Agency of Nigeria (NAN) reports that the NBS had in April emerged as the winner of the Best Public Sector website for the year 2016 and 2017.

    The award was attributed to the manner in which the bureau had communicated and simplified its data to users in recent times.

    The News Agency of Nigeria (NAN) reported that the bureau had recorded increase in the number and the type of published reports on its website.

  • Ambode promises business-friendly policies

    Ambode promises business-friendly policies

    Gov. Akinwunmi Ambode of Lagos says the government will continue to initiate policies and strategies that will enhance business opportunities and enable local products to achieve parity in the international market.

    Ambode, represented by Prince Rotimi Ogunleye, Lagos State Commissioner for Commerce and Industry, said this on Saturday night in Lagos at the LCCI Commerce and Industry Awards.

    The News Agency of Nigeria (NAN) reports that the Commerce and Industry Awards was organised by the Lagos Chamber of Commerce and Industry (LCCI).

    The award is to celebrate private and public institutions operating in the country for their best practises, growth through innovations, business sustainability and positive impact on the society.

    Ambode said that people were conversant with the challenges of the past three years that disrupted investment opportunities in the maritime sector, manufacturing, textile and other real sectors of the economy.

    He, however, said the government was making progress in creating an enabling environment through policies, initiatives, institutional re-energising and infrastructural renewal/development.

    Ambode said that the business environment would continue to improve as positive outcome of some of government’s policies and strategies in the areas of transportation, power, infrastructure and waste management become manifest.

    According to him, synergy between government and the organised private sector through development and implementation of policies has alleviated challenges hindering local and foreign investments in the country.

    He urged local investors and business entrepreneurs to integrate trends that would push Nigeria’s product to a global state, as strategic technological development had changed the way businesses was done globally.

    The governor congratulated all recipients of the award, adding that the success achieved in their various sectors in spite of challenges in the business environment was a testament of their resourcefulness and creativity.

    Ambode urged the organised private sector to continue to partner with government in proffering solutions to the challenges confronting businesses in the country.

    Mrs Nike Akande, President of LCCI, said that the chamber was committed to the promotion of the core values that would ensure sustainable progress of the nation’s economy.

    “The core values include integrity, transparency, social responsibility and sincere commitment to the ideals of business ethics. Value creation is at the heart of wealth creation.

    “We are today celebrating enterprises that have excelled in the economy amidst multitude of challenges in the investment environment.

    “While the government is fixing the power sector, security challenges, foreign exchange issues, infrastructure issues, institutional bottlenecks and corruption, the private sector must move on with the business of creating wealth,” she said.

    Akande said that the chamber’s award would continue to promote healthy competition among corporate and public institutions, adding that there was tremendous value in competition as a driver of excellence.

  • LCCI calls for faithful implementation of ERGP

    Mr. Muda Yusuf, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), on Monday called for faithful implementation of the Economic Recovery and Growth Plan (ERGP).

    Yusuf told the News Agency of Nigeria (NAN) in Lagos that the plan would help to stop policy uncertainties.

    He said that the plan would also boost investors’ confidence in the economy as it had made clear the direction of the government.

    “You know that a number of Nigerians have complained that they did not know the economic direction of the government.

    “The Economy Recovery and Growth Plan has shown what the government policies are.

    “This will help to enhance the confidence of foreign and local investors.

    “Also the good thing about the plan is that foreign investors will be encouraged to bring in more funds into the country”.

    The LCCI boss said that the plan had a delivery unit to monitor its implementation.

    “We have had similar plans in the past, but implementation had always been the problem.

    “So, one good thing about the plan is the clear expression about its implementation,” he said.

    Yusuf advised government to ensure proper coordination of fiscal, monetary and trade policies as important elements of the plan.

    He expressed optimism that the plan would have positive effects on foreign exchange market and makes it market driven.

    “It is important and of interest to monitor how fast this can be delivered because it will bring normalcy to the foreign exchange management and also address challenges in the market”.

    Mr. Wale Adegbite, the Chairman of Ota Branch of Manufacturers Association of Nigeria (MAN), also urged that the plan should be well implemented.

    Adegbite said that nothing could be said yet about the plan until the implementation stage.

    He said that the era of non-implementation of policies had gone and called for full implementation for the success of the policy.

    “It is one thing to have a plan and another is to implement it.

    “It is only at the point of implementation that we can assess the policy.

    “At this stage, we can only urge the government to ensure that the policy achieved its target.

    “Like I said, they are all good intentions and they are all achievable once they put their minds into it,” Adegbite said.