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Tag: LCCI

  • Oil subsidy is biggest platform for corruption, says LCCI

    Oil subsidy is biggest platform for corruption, says LCCI

    THE biggest platform for corruption in the economy today is the management of subsidy on petroleum products, the President, Lagos Chamber of Commerce and Industry (LCCI), Alhaji Remi Bello, has said.

    Bello, in a statement yesterday in reaction to the austerity measures by the government in the wake of the dip in the global  oil prices, said the pressure the drop in the crude price  exerted on the government treasury was enormous, adding that there was need for an accelerated reform of the oil and gas sector and the passage of the PIB, which he noted would mitigate the challenge the subsidy management posed for government’s finances.

    Endorsing the fiscal and monetary stance of the government in response to the declining oil price, the LCCI boss cautioned that the tax yield in the economy was not commensurate with the magnitude of activities taking place in the economy.

    He said the tax revenue (non-oil) to GDP ratio was about four per cent, adding that it was one of the lowest globally.

    According to him, the development underscored the weakness of the Nigerian tax system and apparatus.

  • Experts differ on trade fair gains

    Experts differ on trade fair gains

    Opinions are sharply divided over whether or not the just-concluded Lagos International Fair lived up to its billing.

    Vice President, Lagos Chamber of Commerce and Industry (LCCI) and Chairman, Trade Promotion Board, Chief Michael Olawale-Cole, said the  fair offered businesses the opportunity of visibility, with some business deals sealed.

    He said this was moreso with the nation’s  rebased economy, which is set to attract foreign direct investment (FDI) into the economy.

    He recalled that the fair had been handled in the last 28 years by the LCCI and in each case, it attracted businesses and participants from China, India, Pakistan, Jordan, the European Union, Hong Kong, Indonesia, Cameroon, Ghana and other countries in Africa.

    He said with the rebased GDP of $510 billion, which makes Nigeria a force to be reckoned with in Africa, the country is now a beautiful bride for investors from across the globe wishing to tap into the huge potentials therein. He said although, Nigeria, unfortunately, has over the years, given too much attention to oil and gas sector, neglecting the solid mineral sector and indeed other non oil sectors of the economy, opportunities abound in the country if infrastructure such as  roads, electricity, security and generally the business environment are improved.

    LCCI President, Alhaji Remi Bello, agrees with him, noting that inadequate infrastructure remains a major impediment to investment in the country. He listed poor public power supply, substandard and fake products, high cost of funds, and inconsistent policies as some of the factors militating against FDI inflow.

    However,  many exhibitors were disenchanted with the organisation of the fair over issues ranging from multiple fees, late allocation of stand, limited entry/exit point and even the venue.

    The venue of this year’s fair was shifted from the Lagos International Trade Fair Complex (LITFC) on the Badagry Expressway, which has all the necessary facilities for hosting international business conventions.

    A the stand of Tripef Global Limited, a water purifying company, the manager noted that turnout was quite low in comparison with previous editions held at the LITFC. According to the manager, who declined to be mentioned, “We have been taking part in the fair, but this year we did not see many buyers.  I think the location affected it because many people find it difficult to come to the Island.”

    The story was the same at Honda Generators stand. The stand supervisor observed that the fair did not have the usual busy and crowded feature and that sales were low.

    He said: “May be the economy has affected this year’s fair as people did not have money to spend. Even though we have discounted  the prices of our products, patronage was still not encouraging. Our discount offers ranged from between 10 to 25 per cent just to encourage customers to buy.”

    “Where is the crowd you expect to see in an international fair of this size? Some of us have made losses because turnover is very low; we are  here just to create awareness about our company and products for customers to instill confidence in our customers and let them know that we are on ground,” hissed an exhibitor.

    Mrs. Yemisi Afolabi, who said she visited the trade fair to find bargains and possibly shop for her family for the Christmas, expressed regrets that exhibitors are fast turning the fair into a pure profit making venture rather than what it used to be in the past when companies are more interested in exhibiting and creating awareness for their products. She regretted that she searched the whole fair ground but couldn’t find a good bargain to take advantage of

    She counseled LCCI to insist on exhibitors giving bargains at the fair, insisting that it will attract more visitors next time.

  • Hip-hop star, Vector Tha Viper unveiled as Vitafoam ambassador

    Hip-hop star, Vector Tha Viper unveiled as Vitafoam ambassador

    Nigeria’s foremost rap act, Vector Tha Viper, who was recently named ambassador of Lagos Chamber of Commerce and Industry (LCCI), has also been unveiled as ambassador by Nigeria’s comfort brand, Vitafoam.

    The ceremony took place at the company’s headquarters, Oba Akran Industrial Estate in Ikeja, Lagos.

    Mr. Joel Ajiga, Managing Director of Vitafoam said; “ We want to place Vitafoam as the crème de la crème brand in the heart of every family and Vector cut across 80 percent of our market which is the young minded people. Choosing Vector was a unanimous choice, his style of music is unique and we feel his impact as a youth.”

    “I am super excited to be an ambassador of this premium brand,” said the artiste.

  • LCCI canvass emphasis on non-oil economy

    LCCI canvass emphasis on non-oil economy

    Lagos Chamber of Commerce and Industry ( LCCI), has called on government to lay more emphasis on non-oil economy as it is more inclusive, growth-oriented and characterised by high economic linkages and more sustainable.

    The Chamber also noted that the pressing and overriding challenge in our quest for economic diversification and transformation is to fix the impediments to productivity and competitiveness in the economy.

    Speaking at the opening ceremony of the 2014 Lagos International Trade Fair  with the theme “Promoting the Nigerian economy as a preferred investment destination” over the weekend, LCCI president, Alhaji Remi Bello said the impediments include the state of the infrastructure, especially public power supply, substandard and fake products and high cost of funds in addition to inconsistent policies.

    President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture ( NACCIMA ) Alhaji Mohammed Badaru in his remarks said the theme of the fair is timely at this time when the Federal Government  is implementing policies that will soon revolutionize the country’s investment climate and position it as one of the best places to for business globally.

    He said: “The theme cannot be more important than now when the value of indigenous and sectoral linkages, and benefits of inclusive growth are being transmitted and fast tracked to ensure adequate provision of the enabling environment, including infrastructure and incentives to support increased economic activities, to ensure macroeconomic and policy stability for business to flourish.

    Badaru stressed that no economy can experience sustainable level of real growth and national development without harnessing its trade potentials for successful transformation of the real sector.

  • LCCI inaugurates power sector group

    LCCI inaugurates power sector group

    As a demonstration of its support for the ongoing re-forms in the power sector, the Lagos Chamber of Commerce and Industry (LCCI) has set up a Power Sector Group to further its advocacy role.

    At the inauguration of the group in Lagos, President of the Chamber, Alhaji Remi Bello identified it as one that would provide useful inputs for the Chamber’s advocacy activities “for the protection of stakeholders’ interests and improvement of the power sector as a whole”.

    He disclosed that the LCCI’s objective was to obtain optimal results on the current reforms of the sector by seeking maximum value for electricity consumers. It is also to assist private sector investors, especially the indigenous ones, and seek proper identification of strategic areas in which government intervention is necessary along the power delivery chain. “The Chamber is desirous of making the reform work for the economy, private sector and Nigerian citizens,” Bello submitted.

    Participants at the inauguration, who were mainly stakeholders in the power sector of the economy, lauded the Chamber’s initiative and assured that the contributions of diverse stakeholders at the event towards the promotion of the sector would ensure ultimate realisation of the Chamber’s goal.

    The power sector group is a fall out of the existing science, energy and technology group which has Vice President,  Mrs. Joana Maduka as chairperson. A renowned engineer, Mr. Effiom Edet, was appointed as interim chairman of the power sector group.

  • LCCI berates govt on revenue target for Customs, FIRS

    LCCI berates govt on revenue target for Customs, FIRS

    The Lagos Chamber of Commerce and Industry has faulted the revenue targets given by the Federal government to the Nigeria Customs Service and other government agencies at ports.

    Its President, Alhaji Remi Bello, said there were negative manifestations in the manner of import valuation by the Customs.

    “Reports reaching the chamber indicate many instances of upward review of values of imports in complete disregard to the values of invoices of such imports.

    “Importers have been made to pay import duty and other charges that are far beyond what they ordinarily should have paid. Many investors have suffered untold hardship as a result of this practice, especially when there is no effective dispute resolution system in place.”

    He said the idea of giving targets to revenue generating agencies could result in some unintended consequences.

    The Federal Government had last week, said it has raised the revenue targets of the Nigeria Customs Service and the Federal Inland Revenue Service in order to make more money available in view of dwindling crude oil revenue.

    He said there is a risk that best practice principles will be compromised by the agencies in their desperation to meet set targets.

    He noted that the downward trend of oil price in international market is a setback for the nation’s economy.

    The LCCI President said that the current scenario of sliding oil price from $114 per barrel in June to $85 per barrel now, is the lowest the price has fallen in three years with implications for the capacity of government at all levels to meet their statutory obligations.

    He said: “On top of that, we are struggling with the problem of crude oil theft which is taking its toll on output. For an economy that is 95 per cent dependent on oil for its foreign exchange earnings and 85 per cent dependent on it for revenue, this development should be a cause for concern,” he said.

  • Industrial revolution plan won’t deliver, soon, says LCCI

    Industrial revolution plan won’t deliver, soon, says LCCI

    The Director-General, Lagos Chamber of Commerce and Industry (LLCI), Mr Muda Yusuf has said the Nigerian Industrial Revolution Plan (NIRP) is not something that is structured to begin to deliver results immediately, rather the plan is a long term plan.

    He said  the good thing is that it would bring into focus very important issues that could help to propel the  country’s industrialisation drive.

    “The plan is a long-term plan. But it is not something that is structured to begin to deliver results immediately. That is my own understanding of it. It is like a vision of where you want to be in terms of industrialisation.

    “But generally, I think it is a very good plan because if you look at the composition of the members of the Presidential Advisory Committee, it is made up of some very critical stakeholders.

    “And from what I have heard, they have also been given quite a reasonable license to operate and advice the government at the highest level. And some members of key economic ministries are also there. Ministers of key economic ministries are also members of the committee. There is also this inter-ministerial angle that will facilitate all the things that they need to achieve. So, I think it is a good idea,” Muda said.

    He said the challenges facing manufacturers in the country are multi-faceted and would require a holistic appraisal and a strong determination by the government to bring the manufacturing sector out of the wood.

  • LCCI berates CAC over poor service delivery

    The Lagos Chamber of Commerce and Industry (LCCI) has noted with concern the frustration faced by investors in the course of business incorporation.

    LCCI President Mr. Remi Bello said rather than live up to the high expectations of investors of a better service delivery, the Corporate Affairs Commission (CAC) has deteriorated in service delivery.

    He pointed out, for instance, that rather than take 24 hours to register a business as promised by CAC, business incorporation now takes well over one week in most cases.

    “A major component of the ‘Ease of Doing Business Report’ of the World Bank is the ease of business registration. The performance on this score is not satisfactory,” Bello said.

    LCCI’s observations were contained in a communiqué it issued at the end of its council meeting in Lagos, last week. The communiqué signed by its Director General, Mr. Muda Yusuf, and made available to The Nation, urged CAC’s management to urgently fix the observed shortcomings to realise the dream of making the country a leading investment destination in Africa.

    The communiqué also called for a peaceful political transition. “As the 2015 elections approaches, the LCCI Council reiterated the importance of peace in the transition process. Without peace very little economic activity will take place and it is the citizens that will bear the brunt,” the communiqué said.

    The LCCI Council said it was disturbed by the recent disturbances and assault on the Judiciary in Ekiti State, noting that “This is clearly not a good omen. The LCCI therefore, calls on the major organs of government especially the law enforcement agencies and the Independent National Electoral Commission to redouble their efforts in ensuring a peaceful democratic transition.”

    The LCCI Council however, welcomed the proposal by the Federal Government to partner Lagos State Government to ensure the speedy completion of the reconstruction work on the Lagos/Badagry expressway. Bello said the collaboration was long overdue and that it was wise to allow national development concerns take precedence over partisan considerations at all times.

    In his words: “The Lagos/Badagry road is very strategic, not just for the development of the country, but the facilitation of trade between Nigeria and other countries in the West African sub region.  Over 70 per cent of freight and human movements between Nigeria and countries in the sub region take place on this corridor.  Its current deplorable state is thus taking a huge toll on economic activities in the country and the sub region.”

    He called for the development of a partnership framework to accelerate the completion of the reconstruction work on the road which, according to him, is in the interest of the nation’s economy, the Economic Community of West African States (ECOWAS) economic integration aspirations and the welfare of millions of citizens resident on the corridor to do so.

  • Economy’s biggest problem is overdependence on oil, says LCCI

    The Lagos Chamber of Commerce and Industry’s (LCCI) Director-General,  Mr. Muda Yusuf has said that the nation’s economy’s biggest shortcoming is its dependence on oil.  This, according to him, makes the economy weak and vulnerable to global shocks.

    Yusuf, who spoke in Lagos, observed that the  15 years of uninterrupted democratic rule in the country  has earned it enormous goodwill as one of the few stable democracies making it an investor’s delight.

    He, however, regretted that core democratic values are yet to take firm root in our democracy, especially in accountability and transparency in the management of public finance.

    He called for seperation of powers and the inherent checks and balances, quality and independence of democratic institutions, federalism and  citizen engagement in the democratic process.

    “The LCCI recognises that Nigerian democracy is still work in progress, but it is crucial to recognise the importance of these democratic ideals in the sustenance of our democracy,” he said.

    On economic growth performance in the last 54 years, Yusuf said the economic trend measured by the performance of the Gross Domestic Product (GDP), has been positive over the last two decades, averaging about six per cent.

    This development, according to him,  is good compared to growth conditions in most economies around the world. He, however, said it remained a major worry that the economy is still structurally defective because it’s too dependent on the oil and gas sector, creating serious vulnerability risks.

    He frowned at  the lack of political will to reform the oil and gas sector, which he argued, has remained a major shortcoming of governance over the past two decades.

    He commended the transformation in the telecommunications sector, which stands out as the most successful reform story in the economy.

    He said: “We note the progress being made in the agricultural sector. But it is important to note that the sector cannot be transformed in isolation of infrastructure development and industrialisation.

    “The financial services sector has also shown significant transformation since independence, especially with regards to leveraging technology to enhance service delivery.  The sophistication of the industry can compare with its counterparts even in the advanced economies.”

    On  the weak impact of the growth performance on private sector productivity and the welfare of the Nigerian people, he said the quality of the business environment remained a source of concern to investors, especially in the real sector.

    He further underscored the fact that  weak infrastructures and  institutions had adverse effects on efficiency, productivity and competiveness of enterprises in the economy. According to him,  these conditions pose a major risk to inclusiveness and job creation in the economy.

    Concerning challenges in the economy the LCCI boss said: “Following the GDP rebasing of the economy, the economy is now the 26th largest globally and the biggest in Africa with a GDP of $510 billion in 2013. It is also one of the largest consumer markets globally.

  • LCCI decries multiple permits for businesses

    The lagos Chamber of Commerce & Industry (LCCI) has decried the issuance of multiple business permits in the state. Its President, Mr. Remi Bello said the movement of delivery vans and trucks within the metropolis has become a nightmare as a result of spurious permit charges.

    “There are too many permits and licenses to be obtained, the situation could be so bad that some of these vehicles carry as much as fifteen stickers on their windscreen,” he said.

    A recent survey undertaken by the Chamber, he said, showed that several mandatory licenses and permits are being charged. These, according to him, include Lagos Drivers’ Institute License; Driver’s License by the Road Safety; Local Government Permit; Hackney Permit and Dual Carriage Vehicle License and Certificate of Road Worthiness.

    Others are Barge Permit; Conductors’ Barge; Vehicle Identification Tag; Vehicle Radio and Television Permit; Vehicle Outdoor Mobile Environmental Sanitation Permit; Nigerian Police Emblem; Lagos State Consolidated Emblem and Ministry of Transport (MOT) certification.

    The permits and charges, according to him, have  created problem of logistics for companies operating in the state, most of which are Small and Medium Enterprises (SMEs). The  result of this is that many of the delivery vans would not go out of the factory gates until very late in the day when they would be sure that the Vehicle Inspection Officers (VIOs), Road Safety and the Local Council Officials have closed for the day,” he said.

    Concerning the Lagos Ports, he said: “It has gained a reputation as one of the most expensive in the world, from the point of view of turn-around time of cargo to cost of clearing cargo.  There are issues with internal processes within the port; there are even bigger issues with the logistics of cargo movement outside the ports and to various destinations.  All these have profound implications for the cost of doing business.”

    He commended the current intervention of the government concerning traffic gridlock along the Mile 2 Apapa corridor and  the prompt removal of accidented articulated vehicles in the state.

    “We know that the infrastructure at the port is a federal responsibility. We, nonetheless, seek your further support in prevailing on the federal government to undertake the following, fix the rail system to facilitate the evacuation of cargo from Lagos ports in order to reduce the use of the articulated vehicles and indirectly reduce carnage on Lagos roads and relocate the Tank Farms to reduce the convergence of fuel tankers on the Apapa corridor,” he said.

    On Ebola Virus Disease (EVD), Bello said the disease has taken its toll on businesses in many ways.   He said it has created a perception problem, which has made many foreign investors to be wary of coming to the country.

    “Some projects have been put on hold because the foreign partners were no longer forthcoming. The hospitality industry witnessed some decline; the aviation sector also recorded a drop in Nigeria bound passengers,” he said.

    He commended EVD containment strategies and the goverment efforts. which has given a lot of comfort and restored  people.

    He  further asked for vigilance and  the need to adhere strictly to the advice of the health authorities on ways to minimise the exposure risk to the disease.