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Tag: Lagos Chamber of Commerce and Industry (LCCI)

  • LCCI to CBN: Grant exporters free access to export proceeds

    LCCI to CBN: Grant exporters free access to export proceeds

    The Lagos Chamber of Commerce and Industry (LCCI) has called on the Central Bank of Nigeria (CBN) to review its foreign exchange policy that restricts exporters’ free access to their export proceeds.

    The Director-General, Mr Muda Yusuf, told the News Agency of Nigeria (NAN) on Tuesday in Lagos that the policy was detrimental to non-oil export and did not motivate exporters.

    “The Chamber has received several complaints from exporters about the adverse effects of current foreign exchange policy on export business.

    “The policy hurts exporters as it denies them of the natural advantage of increased profitability which a weak currency offers.

    “Indeed, many Asian economies deliberately devalue their currencies to stimulate their export sectors.

    “A major advantage of weak currency is the incentives it provides to exporters because the currency depreciation makes exports cheaper, boosts demand for exports, creates more business for exporters and improves profitability.

    “It also makes it possible for the export sector to create more jobs, contribute to recovery and growth of the economy.

    “But the foreign exchange policy has denied exporters this very important advantage as they are denied unfettered access to their export proceeds,” he said.

    According to him, the current regulation makes banks custodians of export proceed which they covert to local currency for exporters at official rate.

    “Given the free market premium of about 35 per cent, the policy represents a major disincentive to export business.

    “Yet export sector development is one of the major planks of the economic diversification programme of the present administration,” Yusuf said.

    The director-general said that the policy resulted in a decline in official declaration of export proceeds and led to sharp practices and corruption in export documentation processes.

    “This is a major shortcoming of the current foreign exchange policy of the CBN.

    “It does not augur well for the economy and not consistent with the objectives of the Economic Recovery and Growth Plan (ERGP),” he said.

    “Yusuf urged the CBN and the Economic Management Team to urgently review the policy and not impose conversion rates on exporters.

    “All forms of restrictions to foreign exchange inflows should be removed so that the supply side of the market can be positively impacted and reduce the current pressure on the Forex market.”

    Yusuf said that implementing this would complement recent efforts of CBN to ease the pressure on the foreign exchange market, strengthen the naira exchange rate, bolster foreign reserves and boost investors’ confidence.

     

  • LCCI urges FG to review Import duty on vehicles

    LCCI urges FG to review Import duty on vehicles

    The Lagos Chamber of Commerce and Industry (LCCI) has advised the Federal Government to review import duty on vehicles in order to bring down the cost of transportation in the country.

    The LCCI Director General, Mr Muda Yusuf, made this known to newsmen at Ota, Ogun State on Monday.

    According to him, the current import duty on vehicles was aggravating the cost of transportation in the country.

    Yusuf noted that there is the need for the Federal Government to urgently review the automotive policy in 2017 because of its adverse effects on the economy.

    “The current 70 per cent import duty on new cars is prohibitive and has put the price of new cars beyond the reach of most Nigerians and corporate organisations.

    “Similarly, the present import duty of 35 percent on trucks and buses has also negatively affected the cost of transportation in the economy.

    “This is a period when importers are already grappling with sharp currency depreciation.”

    Yusuf said that if the Federal Government could review downward the import duty on Vehicles, it would enhance people’s standard of living and boost the economy.

  • Nigeria will come out of recession stronger in 2017— LCCI

    Nigeria will come out of recession stronger in 2017— LCCI

    The President, Lagos Chamber of Commerce and Industry (LCCI), Dr Nike Akande, has predicted  that Nigeria will surmount its economic woes and come out of the recession stronger in 2017.

    Akande said this on the sidelines of the LCCI 128th Annual General Meeting (AGM) dinner in Lagos.

    She said that Nigeria, as the giant of Africa, would not stay too long before bouncing back to its former pride of place among the Commonwealth of Nations.

    “LCCI has noted in particular the decline in oil price, the weakening of our currency and the associated challenges this scenario portends.

    “I strongly believe that we will bounce back from the recession stronger in 2017. The economic recession was caused by our over-dependence on oil, but now we have taken the bull by its horns.

    “So many campaigns are going on and restructuring on diversification; with all these put in place, we are sure to come back to reckoning among the Commonwealth of Nations.

    “The year 2o17 is just a couple of months away but by the end of it, things will be better, I am very optimistic,” she said.

    The Managing Director, Bank of Industry (BOI), Mr Waheed Olagunju, said right investment portfolio and diversification would get Nigeria out of recession in short time.

    “What we need to do in this time of this recession is to diversify our economy and stop paying lip service to it.

    “We will need to look at the Mexico model and stop the over-reliance on crude oil as the mainstay of revenue for the country.  We need other sectors as well.

    “We need to encourage more investments because increased investment is one of the ways we can get out of recession. When you invest, it increases production and the Gross Domestic Product (GDP) increases.

    “We can only grow our economy by providing a wide range of investment portfolios and also encourage manufacturing which is a key to any economic development,’’ he said.

  • Nigeria, Morocco set to deepen bilateral trade

    Nigeria, Morocco set to deepen bilateral trade

    Nigeria and Kingdom of Morocco are set to improve bilateral trade relations to boost intra-Africa trade volume.

    Mr Laoye Jaiyeola, Chief Executive Officer, Nigerian Economic Summit Group (NESG), said on Thursday that public and private sectors of both countries would collaborate to leverage on opportunities for sustainable economic growth.

    He said this in Lagos during a Nigeria – Morocco Business Meeting on the theme: “Business Climate and Investment Opportunities”.

    According to Jaiyeola, improved business relations between both countries will create mutual benefits, connect the continent’s markets and enhance competitiveness.

    Mr Muda Yusuf, Director-General, Lagos Chamber of Commerce and Industry (LCCI), said that improved trade relations would boost regional integration between both countries.

    He noted that the strategic partnership between both countries would unlock several trade and investment opportunities in the West African region.

    Ms. Yewande Sadiku, Executive Secretary, Nigerian Investment Promotion Commission (NIPC), said that, in spite of the present economic challenges, Nigeria remained the most profitable economy in Africa.

    She said that business-friendly policies, increasing urbanisation, large young workforce, growing consumer spending, and vibrant private sector were creating investment opportunities in the country.

    According to her, investment opportunities abound in the manufacturing, infrastructure, agriculture, solid minerals, information and communication technology, tourism and hospitality and oil & gas sectors.

    She said that the government was working assiduously to create enabling environment for businesses to thrive.

    Mrs Miriem Bensalah-Chaqroun, Chairman, Confederation Generale des Entreprises du Maroc (CGEM), said that Morocco was interested in partnering with Nigeria to establish a strong foothold in West Africa.

    According to her, both countries have interest in agriculture.
    She noted that agriculture accounted for about 14 per cent of Morocco’s GDP and employed about 40 per cent of its working population.

    She said that the country’s tourism sector was well developed, ranked as first tourist destination in Africa, second job creator and foreign exchange earner.

    According to her, the synergy will position Nigeria to benefit from Morocco’s renewable energy and industrial acceleration plan for socio-economic development.

    “The bilateral trade between Nigeria and Morocco is too low; we need to enhance the trade relations between both countries.

    “We have strong will to partner with Nigeria as a strong economy in Africa despite its economic recession ; it has the market and a large youth population.

    “As Africans, we should trust each other, try to create proper mechanism to deepen intra Africa trade and remove structural barriers to trade and Investment.”

    SGe said that the partnership would be the beginning of a great future for both countries.

  • Obasa: Lagos Assembly to introduce lobby law

    Obasa: Lagos Assembly to introduce lobby law

    Speaker of the Lagos State House of Assembly, Hon. Mudashiru Obasa, has disclosed the intention of the House to introduce a Lobby Law aimed at legalising lobbying to influence government policies.

    Obasa stated this at the awards night organised by the Lagos Chamber of Commerce and Industry (LCCI) to reward corporate organisations which have excelled in different sectors of the economy in the country. The event took place at the Shell Hall, MUSON Centre, Onikan Lagos.

    According to the Speaker, the legislature is essential to providing conducive environment for business to thrive because, “without reasonable and enduring law with human face coupled with policy regulations subjected to the approval of the parliament, there cannot be an enabling and viable investment climate”.

    Obasa stated further that there is the need for corporate investors to collaborate with the parliament, which is saddled with the task of providing the laws for creating conducive environment for investors to operate.

    “Furthermore, to make things easy, the Lagos State House of Assembly is also contemplating introducing a Lobby Law where investors can engage professional lobbyists and engage in the profession of lobbyism to influence government policies,” he said.

    The speaker commended LCCI for initiating the awards which he noted will continue to create healthy rivalry among corporate organisations in the country. He also urged individuals and corporate bodies to support the LCCI initiative saying “it is a means of recognising, promoting and celebrating private and public institutions in the country for best business practices, growth through innovations, business sustainability and positive impact on the people and the society”.

    Speaking earlier, the President of LCCI, Dr. (Mrs.) Nike Akande, stated that the awards night was instituted by the organisation to reward excellent practices in business. “The awards are also meant to encourage winners not to rest on their oars as well as gear up others to emulate the award winners and put in place conducive business practices for the general benefit of the people,” Akande, a former Minster in Nigeria, said.

    Also speaking, the Lagos State Governor, Akinwunmi Ambode who was represented by his Deputy, Dr. (Mrs.) Idiat Oluranti Adebule, commended LCCI for putting up a grand and successful outing.

    He also congratulated the various winners urging them not to relent in putting in place good business practices for the general benefit of the people.

    Twenty corporate organisations won awards in different categories at the event chaired by former presidential aspirant, Chief Phillip Asiodu.

    Among award recipients are: Skye Bank, Bank of Industry, DSTV, Startimes, Verdic Lifecare Hospital, Nestle, Olam, Unilever, May and Baker, Alpha Morgan Capital Managers, Nigerian Export-Import Bank (NEXIM) and Mainone Cable among others.

  • Ban of tomato paste: Labour calls for forex policy review

    Ban of tomato paste: Labour calls for forex policy review

    The officials of Labour union in some of the local tomato processing companies have called on the presidency to prevail on Central Bank of Nigeria (CBN) to review the forex policy listing of triple concentrate tomato paste among the 41 items banned from accessing foreign exchange from the official window by the CBN as the inability of the firms to import tomato concentrate which is the main raw materials used in their production process had drastically affected them.

    This is according to the President, National Union of Food, Beverage and Tobacco Employees, Lateef Oyelekan, saying the companies involved should be given the latitude to plan for backward integration as one of the downside of the policy is that it could lead to massive job losses, as an estimated 1000 jobs are likely to be lost in the tomato process manufacturing sector.

    “The jobs of the workers are at stake unless the ban is reversed, and that the opportunity for backward integration would be lost by the affected companies.”

    According to Oyelekan, the quantity of the produce being cultivated presently in the country is not enough for local consumption and the quality is not good enough to be processed into paste.

    He pointed out that it would take years for the planting, harvesting and processing of the produce into concentrate, adding that most of the companies had run out of stock.

    Oyelekan explained that the volatility factor inherent in tomato farming is often a product of seasonal variations, which is itself a function of the variables of weather, agronomy, water, seed, fertilizer, market, storage, transportation, and numerous other agro-allied business dynamics.

    “If triple concentrate tomato paste is now placed among the list of items that will not have access to the foreign exchange market overnight, that line of business has been killed because the government is working from the perspective that there are tomatoes in the environment for cultivation, processing into paste and packaging. Rather than prohibiting the items overnight, why not engage the manufacturers in discussion.”

    He expressed that the objective of the forex restriction was not a bad idea on its own, however lamented that the implementation of the policy has far-reaching implication in the short, medium and long term.

    Also speaking on the policy, President of the Lagos Chamber of Commerce and Industry (LCCI), Remi Bello, while decrying the policy, warned that most manufacturers might be forced to shut down and move their operations to neighbouring countries due to their inability to access foreign exchange for raw materials and other critical inputs.

    According to him, the government needs to first address the issue of post-harvest wastage emanating from inadequate storage and the absence of processing facilities and the development of agro-allied industry.

    “No matter how bounteous the nation’s harvest is, such productivity will count for little if the produce cannot be stored,” he said.

  • LCCI canvasses PPP collaboration with govt

    LCCI canvasses PPP collaboration with govt

    • Chamber decries double taxation

    President of Lagos Chamber of Commerce and Industry (LCCI), Alhaji ‘Remi Bello, has canvassed the need for collaboration between the private sector and government. He stressed that public-private dialogue is critical to the progress of the state, the welfare of the citizens and the prosperity of businesses.

    He spoke at a meeting held in Lagos last week, between LCCI and Lagos State Governor Babatunde Fashola. He noted that the chamber and the state government have the collective duty to continue to promote and strengthen Lagos as the commercial nerve centre of the country and indeed, the West African Sub region and as a model megacity on the African continent.

    Bello acknowledged the impact made by the governor in areas such as security of lives, environmental improvement and beautification, and huge investment in drainage improvement. Others are infrastructural development, massive railway project on the Lagos Mile-2 corridor, traffic management, industrial parks and enterprise zones.

    He further praised Fashola on investments in the power sector, urban renewal projects and intervention in the traffic gridlock created by the heavy duty trucks and tankers along the Mile 2-Apapa axis.

    He said: “It is widely acknowledged that private sector productivity is a function of the quality of the investment climate. The Lagos State government is working in tandem with this realisation. We however, will like to draw attention to some issues of concern to the business community in the state such as multiplicity and arbitrariness of levies by local government councils

    Bello further said: “We have issues with the manner in which the local government councils manage this aspect of their functions. There are concerns about the method, the process and level of transparency. There are several instances of arbitrariness in the imposition of levies. Most often, these are at variance with approved rates.”

    The LCCI president said many organisations have suffered embarrassment following demand by local council officials for radio and television permit, for instance, which come with a lot of arbitrariness with rates ranging from  N50,000 per annum to N200,000 per annum. “Only recently, a local government council sealed up the premises of a company for failure to pay N200,000 for radio and television permit whereas the approved rate is N10,000. It took the intervention of the office of the Special Adviser on Taxation and Revenue to unseal the premises,” he said.

    He also identified parking permit where he said many organisations have been served with various charges for parking permit ranging from N100,000 per annum to  N500,000 per annum depending on the locations and number of parking lots. According to him, there are instances where both local and state officials make demands on the same companies for parking fees. “For companies in the small and medium enterprise categories, these demands could be very burdensome,” he said.

    Bello called on the governor to prevail on the officials and the agencies to moderate the fees and streamline the levies/permits. He also called for proper coordination between the state and local councils.

    While lauding the setting up of  the  Lagos State  Environmental Protection Agency  (LASEPA) and the need to protect the environment and ensure adherence to best practices in the operations of  entrepreneurs, he criticised the seeming greater emphasis on revenue drive than the core mandate of protecting the environment. The use of consultants for this purpose, he said, has further worsened the process.

    He berated the numerous charges imposed on manufacturers most of which are small businesses. A typical payment request by LASEPA, he revealed, could be as high as N500,000, which consists of the following: environmental development charge, chemical storage permit, laboratory analysis fee, submission fees for environment assessment and submission fees for environmental audit report.

  • LCCI to CBN: relax ‘tight’ monetary policy

    Lagos Chamber of Commerce and Industry (LCCI)

    The Lagos Chamber of Commerce and Industry (LCCI) has blamed what it calls the ‘tight monetary policy’ stance of the Central Bank of Nigeria (CBN), for some of the private sector’s problems.

    The policy, LCCI said, which had been in place

    for almost one year, is taking its toll on the sector’s productivity and sustenance.In a statement by LCCI President Mr Goddie Ibru, the chamber said the interest rates of over 20 per cent were inimical to entrepreneurship development, wealth creation and employment generation.

    The chamber urged the CBN to relax the policy and risk management guidelines to improve access to credit and reduce the cost of funds.

    According to the chamber, this is more crucial than the proposed currency restructuring, which has generated much controversy but with no immediate impact on productivity and economic growth.

    On the introduction of N5000 note, he said: “LCCI is aware that different economic policy has their own costs and benefits and to optimise the benefits, it is always important to be guided by the weight of merits and demerits of any policy reform, but key benefits of the proposed currency restructuring would reduce the cost of currency management such as printing, movement, storage, counting and distribution.

    “It will enhance portability and facilitate business activities of some segments of the economy where a large amount of cash is required, especially in the informal sector. It will reduce risk/vulnerability of cash carriers as higher value of cash can now be easily moved around with less visibility.

    “It will enhance the capacity of Automated Teller Machines, ATM, machines to store more money, reduce ATM stock out time and serve bank customers better and facilitate the return of coin in circulation as some of the lower currency notes are going to be converted to coins.

    “Of course, coins are relatively durable and our history of apathy on the use of coins is largely due to value consideration not the physical properties.

    “What is paramount at this time is for the CBN to relax its current tight monetary policy and risk management guidelines in order to improve access to credit and reduce the cost of fund in the economy. It is time to focus on efforts to stimulate the economy and promote growth,” Ibru said.

    He said the introduction of higher denominations should maintain an incremental sequence of N2,000 to N5,000, in line with historical trends and international best practices, adding that the CBN needed to constantly ensure a proper alignment between the cash-less policy and its currency management strategy.

    In a related event, the chamber has moved the 2012 Lagos International Trade Fair (LITF) to Tafawa Balewa Square, (TBS), Lagos Island, from its traditional trade fair complex ground along Badagry expressway.

    Speaking with journalists , the Vice-President and Chairman, Trade Promotion Board of LCCI, Mr Babatunde Ruwase, said the change in venue was informed by the need to service exhibitors and visitors better given their experience last year.

    According to him, the two major road construction and rehabilitation projects on the Oshodi-Apapa expressway and the Lagos-Badagry expressway created some traffic challenges for exhibitors and visitors last year.

    “Since the construction projects are still going on, we decided to move to a new venue. The TBS and the adjourning Cricket Pitch have over 40,000 square metres of exhibition space, which is more than enough for the organisation of LITF. The highest space utilisation of fair in the last five years had been 35,000 square metres,” Ruwase said.