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Tag: LCCI

  • LCCI: Nigeria recorded 7% average growth in 13 years

    LCCI: Nigeria recorded 7% average growth in 13 years

    NIGERIA has been recording an average of seven per cent growth in Gross Domestic Product (GDP) in the last 13 years, the Lagos Chamber of Commerce and Industry (LCCI), has said.

    TheDirector-General, LCCI, Mr Muda Yusuf, who spoke to The Nation, noted that the country recorded an increase in both local and foreign investments under the democratic dispensation.

    He said Nigeria has become a major investment destination in Africa because investors are more comfortable in a democratic environment.

    However, he said there was huge disparity between the nation’s economic growth and the living standard of Nigerians.

    He explained that the International Monetary Fund (IMF) ranked Nigeria number 36 in the world on account of GDP estimated at $273 billion in 2012.

    “United Nations Development Programme (UNDP), ranked the nation number 157 on account of human development in the same year,” he said.

    Muda said the dividends of democracy could be evident in the business sector if government had intervened in the challenges confronting the sector. “Many small and medium-scale enterprises still have serious challenge in accessing credit even at high rates.

    “The power situation, which improved slightly towards the end of 2012, has since deteriorated. This development led to increase in expenditure on diesel and petrol with the resultant decline in productivity and competitiveness,” he said.

    He said though the economy has fared well when compared with most economies globally, the impact of the growth was yet to improve private sector performance or the overall well-being of Nigerians.

    He pointed out that though the macroeconomic fundamentals, as reflected by the stable naira exchange rate, inflation and growing foreign reserves of the nation were good, the business environment remained largely challenging for investors with the attendant negative implications for competitiveness of the businesses in the global market.

    He said: “Economic growth trend, measured by the performance of the Gross Domestic Product (GDP), has been generally positive over the last two years, averaging about 6.5 per cent.

    “This is good compared with growth conditions in most economies around the world. However, there remains a major concern about the weak impact of the growth performance on the private sector and the welfare of the Nigerian people. Virtually, all business segments lamented the harsh operating environment in recent years.”

    He appealed to the government to bring a lasting solution to security issues to boost the confidence of investors.

  • Lagos Chamber frets over insecurity

    Lagos Chamber frets over insecurity

    The Lagos Chamber of Commerce and Industry (LCCI) has said the worsening state of insecurity in the country is already taking a severe toll on investors’ confidence.

    In a press released signed by the President of the chamber, Mr Goddie Ibru , LCCI stated that the situation has continued to aggravate investment risks in virtually all respects with turnover of businesses on the decline.

    “Access to markets is becoming difficult, the risk to profitability and business sustainability is heightened.  Above all, the risk to lives and property is at an all-time high. Unless something is done very urgently to reverse this state of affairs, the benefits of the recent reforms and macro-economic management might be completely eroded.

    “It is regrettable as well, that the incidence of kidnapping has become widespread with a profound negative impact on the psyche of investors and the citizens as a whole. The latest in the series of kidnapping was the case of the wife of a Supreme Court Judge (Mrs Rhodes-Vivour) who was kidnapped along with the daughter.

    “Besides being a respected legal practitioner and arbitrator, Mrs Rhodes Vivour is valuable asset to the legal profession, the arbitration community and the Chamber of Commerce movement,” he said.

    The Chamber urge the security agencies to scale up their rescue efforts to salvage this and similar situations.

  • LCCI urges CBN to review monetary policy

    The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to review its Monetary Policy Ratio (MPR) to grow the real sector.

    Speaking at a stakeholders’ forum organised by the Financial Services Group of LCCI in Lagos, the Chamber’s Director-General, Mr Muda Yusuf, said the CBN’s reforms had stabilised the economy.

    He said there was need to relax the MPR to aid the growth and contribution of the real sector to the economy.

    He urged the CBN to reconsider its decision on the MPR to boost real sector.

    He said: “We expect the CBN to continue to maintain the MPR at 12 per cent considering the inflationary pressure that still persists but may ease the MPR mid way 2013.”

    He said the inability of most firms to meet NSE’s post-listing requirements is a major hurdle in accessing funds on the Nigeria Stock Exchange (NSE) through listing.

    He said: “We have provided different products to address different needs of different markets. For our $1 trillion target, we are working to ensure that the market is not over-hit. We are watching closely to ensure that the fundamentals are right.”

    Muda urged the Federal Government to involve local meter manufacturers in the Transformation Agenda in the power sector to boost the country’s Gross Domestic Products (GDP).

    He said the government should renew its commitment to patronage of local manufacturers of prepaid meters.

    Muda said though the Federal Government has announced its intention to patronise locally manufactured goods, this has not been done.

    “Local manufacturers, including meter manufacturers, have been groaning in loss due to very low patronage they have been experiencing. We want the Federal Government to renew its commitment to start patronising local meter manufacturers to boost their production,’ he said.

    He also said the low patronage of local products often accounted for poor quality and packaging of their goods, which many had complained about.

  • LCCI, NSE meet today

    The Financial Services Group of the Lagos Chamber of Commerce and Industry, LCCI and stakeholders in the Nigerian Stock Exchange (NSE) will today deliberate on how to ensure growth in the capital market.

    Chairperson of the Financial Services Group and Managing Director of Resort Development Limited, (a subsidiary of Resort Savings and Loans), Mrs. Olajumoke Fashanu said the time had come for Nigerians to be made fully aware of the state of recovery of the capital market.

    “Investors and other players in our capital market need to have their confidence restored in its profitability, with proof of the market’s excellent performance in recent times,” she stated.

    According to Mrs. Fashanu, stakeholders expected at the event include capital market operators, investors and other experts in the financial sector.

    The theme of the confab is ”The Nigerian Capital Market: The Outlook”.

    The Director-General, Nigerian Stock Exchange, Mr. Oscar Onyema, is the guest speaker .

    The exchange was affected some years back by the global financial crisis which made foreign investors to divest from the market, thereby leading to crash in prices and subsequent turmoil in the sector.

  • LCCI decries planned importation of rice mills

    LCCI decries planned importation of rice mills

    The Lagos Chamber of Commerce and Industry (LCCI) has taken a swipe at the Federal Government’s plan to import 100 rice mills from China for distribution to states.

    LCCI, through its President, Goodie Ibru (OON) said the plan, if implemented, will spell doom for the local industries.

    Ibru said: “The proposed acquisition of rice mills raises a number of specific concerns, some of which are the way the rice mills will be distributed, how will they be managed and operated alongside the existing rice processing mills owned by small scale operators without creating the challenge of unfair competition?”

    He advised the Minister of Agriculture, Dr Akinwumi Adesina, to engage local operators in the plan so as to avoid any unforeseen difficulties that might arise. “The minister’s vision and programmes must align with the needs of the agricultural community since they are the operators that would ultimately translate the vision to reality. This can only happen if there is meaningful engagement with the operators in the sector. The agricul.tural transformation agenda will be better enriched through a better consultative process,” he stressed.

  • LCCI cautions law makers over zero allocation to SEC

    LCCI cautions law makers over zero allocation to SEC

    The Lagos Chamber of Commerce and Industry (LCCI) has criticised the zero allocation to Securities and Exchange Commission (SEC) by the National Assembly, urging the lawmakers to review their decision.

    The Chamber’s Director-General, Mr Muda Yusuf, the stand of the lawmakers has many unintended consequences. This, according to him,include, perception and reputational risk for the stability and credibility of the capital market. It also has adverse impact on regulatory effectiveness in the capital market.

    He said the law makers’ stand could reduce the recent gains of recovery and stability in the capital market and send wrong signals about the nation’s democratic process, especially the preservation of the tenets and values of separation of powers.

    “We are concerned about the zero allocation to Securities and Exchange Commission (SEC) which is a strategic regulatory institution in the Nigerian financial system. We urge the National Assembly to review its position in the interest of the stability of the capital market, the nation’s financial system and the larger economy.

    “We urge the National Assembly to look beyond the person of the Director-General of SEC, and give consideration to the wider implications of its decision for the economy.We believe there are adequate provisions in our laws and a multitude of state institutions that could be deployed to bring any erring public official to justice. This is a better option to explore rather than a clampdown on a strategic regulatory institution,” Yusuf said.

    The Chamber commended the National Assembly on the early passage of the 2013 Appropriation Bill, saying that this has increased the prospect of improved budget implementation in 2013.

    “We urge the President to demonstrate a similar spirit by promptly assenting to the bill. The differences in the oil price assumption between the Legislature and the Executive can be managed within a mutually agreed flexible implementation framework. After all, budgets are estimates which would, ultimately, be shaped by reality,” Muda said.

    He said the early passage of the Appropriation Bill portends some benefits for the economy. These, according to him, will pave way for better planning space and time horizon for stakeholders in the economy because of the signalling effect of the budget from appropriation and policy perspectives.

    The National Assembly allocated zero budget to the SEC, citing the Presidency’s refusal to remove its Director-General, Ms Arunma Oteh, from office in line with the law makers’ earlier recommendations.

  • Why Nigerian goods aren’t competitive, by LCCI

    Why Nigerian goods aren’t competitive, by LCCI

    High cost of funds, dumping of substandard products at ridiculous prices in the market, epileptic power and unethical practices in the distributive trade sector, are some of the factors that have made Nigerian goods uncompetitive, The Nation has learnt.

    Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, who disclosed this in an interview with the paper, said the manufacturing sector is being saddled with numerous pressures, which are taking a great toll on the economy.

    “Although some manufacturers acknowledged the improvement in power supply, they lamented the outrageous tariff.There are concerns about weak commitment to the implementation of the policy of patronage of made-in-Nigeria products by the government ministries and agencies. We believe that stronger commitment to the policy of patronage of made- in-Nigeria products would have a tremendous impact on the industrial sector,” he said.

    The LCCI boss said the budget speech has no monetary policy content, stressing that it would have been useful for President Jonathan Goodluck to highlight the thrust of monetary policy as this is critical to the realisation of inclusive growth and fiscal consolidation.

    “This is even more so at a time when businesses are facing severe challenges with regard to access and cost of credit,” he said.

     

  • LCCI worries about influx of short-term investors

    The increasing number of short-term investors bringing in “hot money” is a risk for exchange rate volatility, the Lagos Chamber of Commerce and Industry (LCCI) has said.

    In a statement, LCCI President Goodie Ibru said the risk of sudden reversal or pull-out of such funds would adversely affect price and financial market stability. “Hot money” refers to funds that are controlled by investors who actively seek short-term returns.

    Ibru said there has been a steady decline in aggregate credit to the economy and the private sector, adding that the aggregate net credit by banks to the domestic economy fell by 2.7 per cent and 0.1 per cent in the first and second quarters of the year.

    This, he said, was largely due to the sustained monetary tightening, significant rise in government domestic borrowing, attractive yield of government bonds and treasury bills.

    “The tight monetary policy stance continues to keep funds out of the reach of the private sector. With the planned issue of Treasury Bills to absorb all maturing securities in the fourth quarter, liquidity is expected to remain tighter with the private sector at the receiving end,” he said, adding that in the last nine months, industrialists have seen a steady decline in discretionary spending by households and firms, weaker uptake from suppliers and distributors and softer operating performance, among consumer goods companies.