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Tag: LCCI

  • LCCI praises Buhari for declining assent to NHF Bill

    The Lagos Chamber of Commerce and Industry (LCCI) has hailed President Muhammadu Buhari for not signing the National Housing Fund (NHF) Bill.

    The chamber said the bill would have caused more problems for citizens.

    LCCI Director-General Muda Yusuf gave the commendation in an interview with The Nation in Lagos.

    President Buhari, had on April 2, declined assent to the National Housing Fund Bill alongside seven others passed by the National Assembly.

    Yusuf said the bill would have increased cost of building materials thus widening the country’s infrastructural deficit, led to increase in cost of doing business and inflict hardship on workers.

    He said  what the government should do was to evolve a mechanism that would reduce the cost of building materials to enable more Nigerians become empowered to construct buildings.

    “The government should be more concerned on how to bring down the cost of steel, cement and make land easily accessible and affordable, and also promote the use of local materials for construction,” he said.

    He urged the Nigerian Building and Road Research Institute (NBRRI) to evolve more innovative alternative and sustainable building materials for housing development.

    The LCCI chief said the use of local building materials would reduce the cost of construction, boost productivity in the building industry, and reduce environmental impact.

    Yusuf urged the research institute to publicise and commercialise its prototypes for more acceptability by Nigerians and to bridge the nation’s housing deficits

  • LCCI: NNPC’s downstream oil sector monopoly stultifies growth

    The Lagos Chamber of Commerce and Industry (LCCI) at the weekend expressed worry over the monopoly of the downstream oil sector by the Nigerian National Petroleum Corporation (NNPC). It said  the development has stifled the growth of the sub-sector.

    LCCI said the state-run oil firm now solely produces and imports the petrol that runs the engine of the local economy.

    Its Director-General, Mr. Muda Yusuf, said it has become practically impossible for private sector marketers to import and sell products because of the price distortions which the involvement of the state oil firm has created in the industry.

    He argued that the extant policy on petrol pricing has made it impossible for private sector participants to get involved in neither fuel importation nor local refining by way of setting up refineries in the country.

    Yusuf also expressed concerns over the involvement of Marine Police in the clearance of cargo at the ports.  According to him, the Chamber has been inundated with reports of frequent obstruction of the release of cargo by Maritime Police even when the release has been duly authorised by statutory agencies charged with the responsibility of cargo examination.

    He said their involvement in the cargo release process is a needless duplication, causing avoidable delays and huge demurrage payment by importers. He stressed that the frequent blocking of cargo by the Maritime Police is undermining the ease of doing business policy of the Federal Government.

    He said: “The challenges of clearing cargoes at Lagos ports have persisted apart from the problem of poor access roads to the ports and the associated traffic gridlock; there are concerns about the several units of the Nigeria Customs Service getting involved in cargo interception and clearance processes, creating problems for importers and investors. These units include Comptroller General’s Strike Force, Comptroller General’s Task Force, Federal Operations Unit (FOU), Customs Intelligence Unit (CIU) and Comptroller-General’s Monitoring Team.  Others are Enforcement Unit and CAC squad.”

    He regretted that in addition to the officially approved agencies which have statutory functions for cargo examination and release such as the Customs officers of the command, National Drug Law Enforcement Agency (NDLEA), Directorate of State Security (DSS), Ports Police, Nigeria Immigration Service (NIS), Nigeria Ports Authority (NPA), Nigeria Maritime Administration and Safety Agency (NIMASA) and Port Health.

    He sought the urgent intervention of Federal Government to stop the disruption the numerous Customs units are creating for importers, within and outside the ports. This practice is a negation of the ease of doing business agenda of the government and it is hurting investors, he added.

    He said such delay leads to huge demurrage by importers to shipping companies and terminal operators and also affects the production cycle of manufacturers with implications for cost escalation. He urged the Inspector-General of Police to urgently intervene to redress the situation in the interest of the economy.

    Yusuf urged government to prioritise reform in the oil and gas sector; pass the Petroleum Industry Bill (PIB) into law; fix the power sector; give due priority to infrastructure; address security issues in parts of the country; reduce cost of governance; and resolve the Apapa traffic gridlock which is taking a huge toll on the economy.

  • LCCI praises CBN over MPR reduction

    The Lagos Chamber of Commerce and Industry (LCCI) has commended the Central Bank of Nigeria (CBN)  for  reducing the Monetary Policy Rate (MPR) by 50 basis points from 14 per cent to 13.5  per cent. Its Director-General, Mr. Muda Yusuf in a statement said the action aligned with the clamour of the private sector.

    He said the private sector had canvassed for a relaxation of the tight monetary policy regime in the light of weak consumer demand, fragile economic growth and high rate of unemployment.

    Yusuf argued that though the reduction is not materially significant, it however, it is the appropriate policy choice at this time.  He said the economy is currently characterised by fragile growth at 2.3 per cent; unemployment at 23 per cent and youth unemployment at 36.5 per cent.

    Others he noted are high dependence on crude oil export; weak diversification and high poverty incidence.  He maintained that the economy needs both monetary and fiscal stimulus at a time like this.

    He said: “Although, the major monetary policy instruments of Cash Reserve Ratio (CRR) and Liquidity Ratio are still high at 22.5 per cent and 30 per cent respectively are still high and in tightening mode, the reduction in the MPR has a symbolic and signaling significance.  We expect that other monetary instruments will be adjusted over time”.

    Read also: LCCI: AfCFTA is game-changer

    He subscribed to the new policy by insisting that economic policies are typically characterised by tradeoffs and policy choices driven by what is utmost economic objective at a given point in time.  He added that the priority at this time is to stimulate growth.

    He also advised on the need to address the mis-alignment between the banking system activities, stimulation of economic growth and promotion of economic inclusion.

     

  • LCCI: AfCFTA is game-changer

    Signing the African Continental Free Trade Area (AfCFTA) agreement will be an economic game-changer for Nigeria, the Lagos Chamber of Commerce and Industry (LCCI) President Mr Babatunde Ruwase has said.

    The AfCFTA, signed in Kigali, Rwanda on March 21, last year, is a trade agreement between 49 African Union (AU) member states (excluding Nigeria), with the goal of creating a single market followed by free movement and a single-currency union.

    While some have expressed concerns over sustainability of investments should Nigeria sign it, Ruwase was of the view that the country stands to benefit from continental economic integration.

    He spoke during the 2019 Founders Day Lecture of the Nigerian Institute of Advanced Legal Studies (NIALS), with the theme: Inclusivity and the transformational potentials of the AfCFTA for African countries.

    Ruwase, who chaired the event, said: “The reality is that there is a great deal of value in economic integration, but as a country, we need to position ourselves well to take advantage of the opportunities it offers.

    “The AfCFTA is an age-long dream of the continent with regards to the promotion of trade and investment among African countries.

    “As a country, our decision on the AfCFTA could be a game-changer for Nigerian economy if we do the right thing at the right time.”

    The guest lecturer, Adjunct Professor at the Centre of Comparative Law in Africa, University of Cape Town, South Africa, Prof Faizel Ismail, said AfCFTA has the prospect of catalysing the process of transformative industrial development, cross-border investment, democracy and governance in Africa.

    Read also: LCCI: VAT hike’ll compound business woes

    He, however, advocated for fairer outcomes of the AfCFTA and a more balanced and mutually beneficial integration process.

    “African governments should ensure that their stakeholders: business (both big and small), trade unions and civil society NGOs are included in the national consultation process and, provide their negotiators with clear mandates for negotiations.

    “African countries need to build effective institutions that are inclusive and enable the fullest participation of stakeholders in the negotiating process.

    “This will improve both the quality and the sustainability of the AfCFTA agreements,” he said.

    NIALS Director-General Prof Adedeji Adekunle said the yearly Founders Day Lecture provides a forum for intellectual discussions on legal and related issues.

    “We use it to take stock of how faithful we have been to the mandate of the institute and the dreams of those who founded it.

    “The topic is one that is on the front burner. Even as we’re gathered here, CEOs from Africa are gathered in Kigali talking about what AfCFTA holds for them.

  • LCCI: VAT hike’ll compound business woes

    The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr. Muda Yusuf, has warned against the upward review of Value Added Tax (VAT) as a means of funding the national minimum wage.

    He said the development would create further problem for the business community and compound already operating environment challenges.

    Acording to him, the way tax is operated in the country is different from the way it is operated in the other countries., adding that it is not favourable to the average man on the street.

    Yusuf added that taxation is about creating an environment which allows the rich to support the poor, stating that this same principle could be extended to micro enterprises in the economy.

    “Such category of business owners should also enjoy tax exemption,” he stated.

    According to him, a minimum wage of N30, 000 is not too much to be paid to the lowest worker of an organisation, whether in the public and private sector, taking into account, the cost of living  in the country.

    He said: “Let us take a scenario of a family man that has to pay school fees for his children, provide feeding for the family, pay for health care, pay for transportation, pay house rent and possibly even support some dependants. A monthly income of N30,000 certainly cannot cover these basic responsibilities. It is therefore even worse when we talk about N18,000, minimum wage.

    “However, the challenge with many of the state Governments is that they have a workforce that is very unwieldy and not sustainable. There is also the problem of too many political appointees on the payroll of many of the state governments.’’

  • LCCI seeks reform in oil, gas industry

    The Lagos Chamber of Commerce & Industry (LCCI) has advised the Federal Government to improve the regulatory environment in oil and gas industry to unlock huge foreign direct investment (FDI) in the sector, especially in gas and deep-water exploration.

    Its President, Babatunde Ruwase in a statement, said this is one of the major objectives of the Petroleum Industry Bill (PIB).  He regretted that the journey for its legislation started over 15 years ago, adding that not much progress has been made till date.  He requested that a more expeditious consideration be given to the bill through appropriate collaborative actions with the National Assembly.

    According to him, crude oil export is the biggest foreign exchange earner but sadly the biggest foreign exchange expenditure is also on the importation of petroleum products.

    He said: “Increases in crude oil price benefits the Nigerian economy with regards to foreign exchange earnings but penalises the economy in terms of the huge foreign exchange commitment to importation of refined petroleum products and high energy cost. We need to prioritise local refining of petroleum products to ease pressure on our reserves.”

    He further requested the intervention of the Presidency to reduce the burden of excessive taxation on oil and gas investors in the country. He called the attention of government to a proposal by the Nigeria Ports Authority (NPA) to impose $1 levy on every barrel of oil export and new levies proposed under the National Oil Spill Detection and Response Agency (NOSDRA) amendment bill, including the Maritime University amendment bill.

    Ruwase also sought protection for the manufacturers of gas cylinders to promote industrialisation, self-reliance and conservation of foreign exchange.

    According to him, there is already a huge capacity to meet local cylinder demands.

    On the power situation, the LCCI chief acknowledged the efforts by the government to improve liquidity in the power supply chain, the drastic reduction in the debt owed to gas suppliers and the generating companies, improvement in power generation, and the enhancement of carrying capacity of the transmission grid.

    He argued that a chain can only be as strong as its weakest link as in this case the distribution end is still grappling with numerous challenges which limit the capacity to deliver power to end users.  According to him, the power situation continues to pose challenges to business operators as there were complaints across all sectors about high energy costs, especially high expenditure on diesel.

    He noted that the situation had worsened with the increase in global crude oil price. A situation where businesses spend between 20 and 30 per cent of their total operating cost on generating power is not the best, he said.  He said policies and incentives should be put in place to encourage decentralisation and more off grid solutions.

    He said: “The government should encourage and facilitate more off grid power generation for improved access to power.  The Aba and Sura market power initiatives should be widely replicated across the country.”

    On access and cost of credit for Medium Small micro Enterprises (MSMEs), he said it is still a major concern to the Small medium Enterprises (SMEs) sector.

     

  • LCCI advises Buhari on economy, others

    The Lagos Chambers of Commerce and Industry (LCCI) yesterday, set an agenda for President Muhammadu Buhari’s second coming, listing security, economic management philosophy, funding of government operators, economic integration, visa policy and rail infrastructure among others as key priority areas the government must focus its attention.

    Addressing reporters in Lagos, its President, Mr Babatunde Ruwase said there was need for the government to formulate economic policies that will promote investors’ confidence and see a rebound in the tempo of economic activities.

    He said: “The government should therefore, commit to policies and programmes that will accelerate economic growth and ensure that the growth rate surpasses the rate of growth of population.

    “Private sector investment is a critical growth driver; therefore, the government should vommit to the creation of an enabling environment to bring about a quantum leap in private investment.”

    Ruwase urged Buhari to ensure that “tax policy, trade policy and the foreign exchange policy must be in alignment with this objective”.

     

  • LCCI to inaugurate printing, publishing, allied group

    The Lagos Chamber of Commerce and Industry (LCCI), said it would inaugurate a new group, the Printing, Publishing and Allied Group. The group is intended to bring together stakeholders from the Printing, Publishing and Allied services.

    LCCI said membership of the group is drawn from the Printing, Publishing and Brand management sub-sectors of the nation’s economy and is open to interested members of the general public.

    In a statement, the chamber said the proposed group will bring together major players in the sector and facilitate business growth, networking opportunities, business development services and training opportunities for joint ventures, strategic alliances, partnership with foreign businesses and vital business information.

    Commenting on the initiative, LCCI Director General, Muda Yusuf, said that the “sector’s potential contribution to our economic development is huge and thus should be well harnessed.

    “It is important we create a platform for key players in the sector to connect and discuss solutions to issues and challenges plaguing the sector. The group will engage relevant authorities to foster the advancement of the sector”, he added.

  • LCCI to World Bank: review ease of doing business indicators

    The World Bank should review the indicators for composing the Ease of Doing Business (EoDB) Index to reflect the reality of each country, the Lagos Chamber of Commerce and Industry (LCCI) has said.

    Speaking in Lagos, its Director-General, Mr. Muda Yusuf, said country-specific criteria was desirable and not just using the same indicator for every country.

    He said countries vary in their peculiarities and challenges.

    “Some of the indicators in the EoDB composition do not properly capture the critical variables in our own environment.

    “Issues of power, transportation, security and our regulatory environment are not captured. We need to address all these other variables that are not on the list of the EoDB parameters,” Yusuf said.

    The LCCI chief pointed out, for instance, that the present indicators were about construction permit, ease of starting business, credit, reforms, trading across borders, among others.

    “There are some issues on the parameters that are not fundamental to our own business environment in terms of impact.

    “In many of those countries that you roll out these parameters, security is not an issue, power and transportation are taken for granted; whereas in our environment, these are very big issues,” he said.

    Yusuf said it was cogent for the World Bank to include these excluded variables in order to have a parameter that reflects the reality of each country.

    According to him, the excluded variables were factors that should be addressed as they drive the cost of doing business in the country, which invariably affect the ease of doing business and the business environment.

    The World Bank Doing Business Index (DBI) is a yearly ranking that objectively assesses prevailing business climate conditions across 190 countries based on 10 EoDB indicators.

    The Index offers comparative insights based on private sector validation of reforms delivered in the two largest commercial cities in countries with a population higher than 100 million.

    A nation’s ranking on the index is based on the average of 10 sub-indices namely, starting a business; dealing with construction permits; getting electricity; registering property; getting credit and protecting investors.

    Others are: paying taxes, trading across borders, enforcing contracts and resolving insolvency.

  • LCCI hails decision on auto policy

    The Lagos Chamber of Commerce and Industry (LCCI) yesterday commended the Federal Government’s decision to review the Automotive Policy.

    Its Director-General, Mr Muda Yusuf, gave the commendation in a statement in Lagos.

    He said the policy had failed to achieve the desired outcomes.

    “It has adversely impacted the cost of doing business, welfare of the people, government revenue and the capacity of the economy to create jobs.

    “The policy has also penalised stakeholders in the sector that are compliant with extant rules, taxes and tariffs applicable to the automobile sector.

    “The cost of vehicles has risen beyond the reach of most citizens and corporate bodies; the impact has been largely negative with far reaching consequences,” he said.

    The News Agency of Nigeria (NAN) reports that the auto policy is an import substitution industrialisation strategy to reduce importation of vehicles and incentivise domestic vehicle assembly.

    It has an import levy of 50 per cent on new cars and 25 per cent on used vehicles, asides the import duty of 20 per cent on new cars and 10 per cent on used vehicles.