Tag: LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has emphasised the importance of maintaining discipline in the foreign exchange market to sustain the steady appreciation of the Naira.

The President and Chairman of the Council of LCCI, Mr Gabriel Idahosa, made the call in an interview with the News Agency of Nigeria (NAN) yesterday. Idahosa praised the efforts of the Central Bank of Nigeria in imposing discipline, attributing the recent Naira appreciation to curbing speculative activities.

“On the monetary side, the CBN is doing it. The primary efforts should continue to impose discipline in the foreign currency market.

“The abuses in the foreign currency market were prevalent and most of the fall in the value of the Naira in the last six months is not because there was any sudden calamity in Nigerian economy.

“It was primarily because of very reckless speculations, that people were just speculating in the dollar, they had nothing to export, nothing to import, they were just buying the dollar for speculative reasons.

“And once the Central Bank started to impose discipline in the foreign currency market, we saw the value of the Naira rising very quickly by stopping speculation,” he said.

According to him, the strategies of the Central Bank, now, is designed to achieve a sustained discipline in the foreign currency market.

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Idahosa highlighted the need to continue reducing the number of Bureau de Change operators, stressing that many operated without contributing to international trade.

 He applauded the Central Bank’s move to enforce documentation and identification of buyers and sellers at BDCs, aiming to deter reckless speculation and curb illicit financial flows.

On the fiscal side, Idahosa urged President Bola Tinubu to prioritise a nationwide export drive, citing it as the key to bolstering the Naira and providing essential foreign exchange.

He emphasised the importance of fostering a culture of export among Nigerians across all scales of enterprise to reduce reliance on imports and strengthen the country’s economic resilience.

Lagos Chamber of Commerce & Industry (LCCI) has urged the Federal Government to provide special support mechanisms to strategic companies and industries that play critical roles in achieving inclusive growth.

In a statement, it noted that a major improvement recorded in Nigeria’s economy could be attributed to the game-changing interventions of key players in the private sector.

Its Director-General, Dr Chinyere Almona, said as Nigeria strives to stabilise prices, boost foreign exchange (forex) inflows, and attract Foreign Direct Investments (FDIs), it is imperative to recognise the role that certain companies play in driving growth, fostering innovation, and creating employment opportunities.

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These strategic companies, according to her, often serve as the backbone of the economy, contributing significantly to its stability and resilience in key sectors such as manufacturing, agriculture, technology, and infrastructure.

The LCCI chief acknowledged the significant impact that Dangote Refinery is beginning to make on the economy, particularly in achieving national self-sufficiency in the production of diesel and aviation fuel.

The Lagos Chamber of Commerce and Industry (LCCI) has commended the recent actions taken by the Federal Government to cut the cost of governance.

It particularly commended the government’s decision to reduce the number of public officials on foreign trips and the recent directive to suspend  public-funded foreign trips for government officials, effective April 1.

Its  Director-General, Dr. Chinyere Almona, in a statement, said the effective management of the nation’s resources would reflect on the cost of governance, which is a positive step towards a more economically stable Nigeria.

Almona said considering the  economic challenges facing our nation, including soaring inflation and high living costs exacerbated by the removal of petrol subsidies and forex market crises, the government must take decisive action to cut unnecessary expenses and even reduce statutory expenditures, where possible.

The LCCI chief explained that the decision to temporarily halt public-funded foreign trips aligns with the urgent need to prioritize cost-saving measures without compromising the effectiveness of governance.

She said: “The LCCI acknowledges the government’s concern about the rising cost of travel borne by Government’s Ministries, Departments, and Agencies (MDAs). By this suspension, the government can redirect valuable resources towards more pressing priorities, including infrastructure development, social welfare programs, and economic stimulus initiatives”.

“The government at all levels and tiers should initiate similar actions to cut the cost of governance within their jurisdictions.  For instance, the Abia State Governor, Dr. Alex Otti, recently signed the Abia State of Nigeria Governors and Deputy Governors Pension Repeal Law of 2024, stopping the payment of pensions to ex-governors and their deputies in the State. This action is worth emulation by other states and the Federal Government.”

 She urged the Federal Government and States to make public the amount of funds rescued from these cost-cutting initiatives.

According to her, the commitment to public accountability will reassure citizens and companies, fostering a sense of trust and confidence in the government’s financial management.

She also encouraged fiscal transparency, including the exact figures allocated to statutory transfers in the government budgets and amounts allocated for constituency projects undertaken by legislators in the National Assembly.

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In her words, these disclosures can inspire citizens and companies to pay their taxes with a deep commitment to contributing to the commonwealth of our nation.

Furthermore, the LCCI boss said they envision the rescued funds to be invested in projects that promote cost-efficiency and automation.

She advised that such strategic initiative could be the allocation of rescued funds towards the automation of virtual platforms within each ministry.

She said: “This investment, by enabling remote training and participation in meetings, can significantly reduce the need for costly international travels. This shift towards virtual engagement not only reduces operational expenses but also enhances efficiency and productivity across government agencies. We believe in the potential of these initiatives to inspire and support a more cost-efficient and effective government.”

She hailed the government for this decisive action in suspending public-funded foreign trips and urged all stakeholders to support efforts aimed at fostering responsible fiscal management and driving inclusive growth in Nigeria.

• •Seeks better management

The Lagos Chamber of Commerce & Industry (LCCI) has commended the Federal Government’s initiative to establish a national commodities board aimed at regulating rising food prices.

However, it warned of its side effects.The National Bureau of Statistics (NBS)’s latest report indicated that food inflation rate hit 33.9 per centlast month.

LCCI Director-General,   Dr. Chinyere Almona, in a statement hailed the initiative for coming at  a critical time when the rising cost of food had become a pressing concern for the government and citizens.

According to her, the proposed commodity board has the potential to bring stability to food prices by assessing and regulating them. This, she said, could alleviate the burden on consumers and enhance overall economic predictability and the creation of a strategic food reserve for stabilising prices of crucial grains and other food items.

Noting that it is a positive step toward ensuring food security and mitigating the impact of supply chain disruptions the Chamber also viewed the initiative as the government’s commitment to implementing effective short-term strategies.

The LCCI boss stressed that the policy will also counteract subsidy removal and ensure the immediate food supply by deploying concessionary capital from the Central Bank of Nigeria (CBN) to the agricultural sector.

She said: “This should be targetted,  especially toward fertiliser, processing, mechanisation, and other key aspects, as a positive move that can enhance the overall productivity of the agricultural value chain.”

She, however, said the Chamber observed that the price regulation might address immediate concerns with the risk of market distortion, if not implemented carefully.

She said: “Over-regulation may discourage private sector participation and hinder market dynamics that is against business community growth. More so, this plan may largely involve complex logistics that will require robust systems and processes to ensure the board’s effectiveness without bureaucratic bottlenecks”.

In their suggestions, the statement stated, considering this development, the LCCI offers its insights and recommendations on the best strategies the federal government should adopt for the successful implementation of the National Commodity Board.

The LCCI boss emphasised the importance of a comprehensive approach that combines short-term interventions with medium-term strategies to ensure sustained and effective results.

It recommended among other things that the distribution of fertilizers and grains to farmers and households should be prioritized to counteract the immediate effects of subsidy removal on food prices.

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Others are to foster collaboration between the ministries of agriculture and water resources to ensure efficient farmland irrigation, promote year-round food production, and reduce dependence on seasonal variations. Expedite the establishment of the National Commodity Board to assess and regulate food prices. This board should also be mandated to maintain a strategic food reserve to stabilize the prices of crucial grains and other food items.

Actively engage the youth population by making agriculture an attractive and viable option. This can be achieved by creating five to 10 million jobs within the agriculture value chain, aligning with the government’s commitment to job creation.

She noted that it  is imperative that the private sector, including farmers and other stakeholders, is actively involved in the decision-making processes and implementation of the commodity board to ensure inclusivity and effectiveness.

According to her the rising cost of food is a critical issue that requires immediate attention and sustained effort. Furthermore she stated that LCCI stands ready to collaborate with the government in implementing these strategies to achieve the shared goal of ensuring food security and stabilizing prices for the benefit of all Nigerians.

Policy reforms by the government, especially the removal of fuel subsidies and floating of the exchange rate, are expected to boost fiscal revenue and contribute moderately to the improvement of the country’s growth prospect this year, the President, Lagos Chamber of Commerce & Industry, (LCCI) Mr Gabriel  Idahosa, has said.

 He spoke at the presentation of 2024 Economic Outlook and Budget Analysis with the theme: “Building Economic Resilience in 2024: Strategies for a Sustainable Future” event organised by the Chamber.

He observed that the economy last year proved to be surprisingly resilient amid multiple shocks arising from significant inflationary pressures, consistent currency depreciation, decelerated economic growth and monetary tightening.

Others are debt sustainability challenges, declining real income, high unemployment and poverty levels.

Quoting World Bank 2024 global economic prospects, he stated that its growth projection for Nigeria in 2024 and 2025 averaged to 3.3 per cent and 3.7 per cent which translates to 0.3 and 0.6 percentage point.

Similarly, the United Nations Department of Economic and Social Affairs in its World Economic Situation and Prospects 2024 projects that Nigeria’s economy will grow by 3.1percent  in 2024 and 2025, with inflation expected to gradually ease as the effects of last year’s exchange rate reforms and removal of fuel subsidies fade.

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He said, however, that downside risks to growth prospects include rising cost of living, weak business environment, poor manufacturing performance and rising unemployment.

In a keynote, Chief Executive Officer, Financial Derivatives Company, Bismark Rewane observed that some sectors such as financial institutions, telecommunication, and construction are achieving growth over the national average.

He criticized the targets of budget 2024 as vague because of several lofty targets of achieving job-rich economic growth, macroeconomic stability, reduction of fiscal deficit from N13.78 trillion to N9.18trillion, enhanced human capital development and poverty reduction.

Others are better investment environments, increased revenue to GDP, reduction in the cost of doing business and cost of living of an average Nigerian. He added that fiscal spending has not been complemented with adequate domestic & foreign investments.

He predicted that the economy could only get better if there is increased spending in infrastructure development, adding that deficit spending is yet to yield the intended impact on the economy.

Rewane   lamented the lack of transparency, clear policy duration and lack of effective price discovery. On the way forward, he said Nigeria should think of ways of rescheduling debt, increasing interest rates and cost reflective electricity tariffs.

Director General, Budget Office, Ben Akabueze spoke strongly in favour of the 2024 budget and its capacity to deliver on expectations. He said one of the challenges facing the nation is that of low public revenue against a growing population. He said the nation has had over three decades of deficit budget that it has not been able to pay back. He said the popular mantra of some analysts is the need for the nation to spend less but he argued that what the nation needs to do is to spend efficiently and not less.

Also, Taiwo Oyedele stated that if local refining supported, the nation will come out of the woods. According to him, there is a lot of price inefficiency on the cost of fuel and diesel. He hailed the 2024 budget as on target as Education and health fared better. He advised the government to stop forth with what he called nuisance tax as businesses are exposed to multiple taxation.

The Lagos Chamber of Commerce & Industry (LCCI) has said the 60 per cent cut for local and domestic travels by government is a decisive step to curb excessive travel spending and aligns with the need for financial prudence in the management of public funds.

In a statement signed by its Director-General, Dr Chinyere Almona urged the government to push the  policy much more  to all federal ministries, departments, and agencies, as well as the offices of the President, Vice President, and the wives of both officials.

She said: “The reduction in the entourage size is a commendable step toward cost-cutting, and this exercise is expected to result in significant savings vis-à-vis estacodes and duty allowances”.

“The LCCI is pleased that the government is heeding the incessant calls for the reduction of the cost of governance”.

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She maintained that the President’s decision to lead by example via the implementation of these measures will set a precedent for government officials at various levels to follow suit, fostering a culture of fiscal responsibility and accountability.

According to her, the President has set the right tone at the top to show case a more prudent government.  She stated that the organized private sector (OPS) expects this to cascade to all levels for it to have a significant impact across board. She said: “Therefore, ministries, departments, and agencies need to adjust their bureaucratic operational procedures to accommodate the new limits. It is also expected that this level of fiscal discipline will be implemented by state governors, members of the National Assembly, and State House of Assemblies.”

Almona hailed the President’s emphasis on aligning the prudence of government officials with that of Nigerian citizens insisting that it reflects a commitment to prioritize the well-being of the nation and its people.

She further stated that it is crucial at a time when economic challenges require stringent fiscal measures.

The LCCI boss said they are of the view that there might be resistance from some government officials accustomed to larger entourages, and enforcing compliance could face challenges. She asked for the clarification on the sanctions for non-compliance as it would be essential to ensure effective implementation.

She said: “The LCCI commends the President for his commitment to financial prudence and encourages a transparent and accountable system of implementing the directives, with continuous engagement to address concerns that may arise during the adjustment period.”

 The decision to align government spending with the realities faced by Nigerian citizens is a step in the right direction for sustainable economic management she added.