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Tag: LCCI

  • LCCI: minimum wage, election may heighten inflation

    The Lagos Chamber of Commerce and Industry (LCCI), yesterday warned that an upward review of minimum wage and election spending may heighten inflationary trends in the country.

    It said inflation will remain on the upward trajectory over the coming months unless the Federal Government formulates and implements  policies that will enhance non-oil sectors’s productivity to increase output and moderate inflation.

    Addressing reporters in Lagos yesterday, its President, Mr Babatunde Ruwase said the grosss domestic product (GDP) growth of 1.81 per cent is below the nation’s annual population growth of about three per cent and remains a cause for concern due to its wider implications for welfare, unemployment and poverty in the country.

    He said the group has not identitied with or endorsed any political party, and will never do so.

    As elections draw near, Ruwase said the economy and investors are faced with new challenges that will require some immediare adjustments.

    He warned that current weak economic fundamentals  are bad omen and urged the Federal Government to formulate and implement policies and programmes that will facilitate the growth of domestic and foreign investment to boost the economy.

    The LCCI chief also said   growing unemployment figure was a reflection that growth in the economy is still weak, fragile and not inclusive.

    “It is imperative therefore to sustain efforts to create the enabling environment to attract more private capital to boost investment and growth,” he said.

    Access to and cost of funds remain a big issue for many domestic investors, he added.

    “With commercial bank lending rate at between 20-35 per cent, the private sector especially the SMEs had challenges in accessing credit for their businesses. We note the efforts of government through the Central Bank of Nigeria (CBN) and Bank of Industry (BoI) to extend intervention funds to the private sector operators. We also commend the government for enacting the Secured Transaction in Movable Assets Act, 2017 (popularly called Collateral Registry Act 2017) and the Credit Reporting Act, 2017,” Ruwase said.

    He urged the government and its agencies to do more in making sure that credit is accessible to the private sector especially the SMEs.

     

     

  • LCCI lists key policy reforms to drive economy

    Lagos Chamber of Commerce and Industry (LCCI), has recommended key policy reforms for 2019 to support and sustain macroeconomic stability.

    In its 2018 Economic and Business Review, LCCI listed the reforms to  include a foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalisation of Lagos ports environment, the oil and gas sector reform, especially the Petroleum Industry Bill.

    Others are the  reduction in the cost of governance at all levels;  improvements in the domestic revenue, particularly independent revenue, to reduce volatilities of government revenues, among others.

    The Chamber expressed concern over the nation’s rising public debt profile, stating that debt service to revenue ratio of 31 per cent and debt service to capital expenditure ratio of 75 per cent in the 2019 budget proposal, are on the high side.

    It said this may impede the country’s ability to deliver infrastructure investments. According to the review “The Debt Management Office (DMO) put the nation’s total debt stock (federal, FCT and states) at N22.38 trillion ($73.21 billion) as at June 30, 2018. We are concerned about the fast-growing public debt profile and the country’s fiscal sustainability in the medium term.

    “Debt service to revenue ratio of 31 per cent; and debt service to capital expenditure ratio of 75 per cent in the 2019 budget proposal are on the high side with implication on the country’s ability to deliver infrastructure investments.

    Beyond the GDP numbers, what is paramount to investors are the cost of doing business, productivity of the investments, competitiveness of firms and the sustainability of investments. And to the average Nigerian, what matters is welfare and quality of life, especially food prices, cost of healthcare, improved transportation system, power supply, access to quality education and security of lives and property.

    Data from the Organisation of Petroleum Exporting Countries (OPEC) shows that oil prices are trending down at $54 p/bl on 22nd December 2018 from its peak of $88p/bl in the month of September and October 2018.

  • LCCI: economy grows lower than IMF’s, ERGP’s projections

    The Lagos Chamber of Commerce and Industry (LCCI) said the economy grew lower than the projections of the International Monetary Fund (IMF) and the Federal Government’s Economic Recovery Growth Plan (ERGP).

    Its President, Babatunde Paul Ruwase, lamented that the economy performed below the growth forecasts of 2.1 per cent and 4.1 per cent  of the IMF and ERGP and IMF .

    He said unemployment as at Q3 2017 stood at 18.8 per cent which translates to over 16 million unemployed people. He said this was made worse by an average of three per cent growth and population of about 200 million without a corresponding economic growth and prosperity.

    He underscored this further with data from the National Bureau of Statistics (NBS) that showed that real GDP grew by 1.5 per cent in the second quarter of 2018 from 1.95 per cent in the first quarter.

    He said the good news is that before now, rising global oil prices and stable local production levels of crude oil are the two key critical factors that helped to restore calm in the forex market.  He said confidence has returned to the market and hoped this would be sustained next year.

    Ruwase said though the CBN intervention in the FX market pressured the country’s gross external reserves from $47.5billion in July to $41.99 billion at the end of October 2018.

    He said: “The local currency faced increased pressure in Q4-2018 which is a reflection of the sell-off in fixed income and equities by foreign investors resulting from the rising rates in advanced economies.”

    On the way forward, he said the country may continue to see increased pressures on the FX reserves following the US Federal Reserve’s hike in rates. He argued that the potential increases in oil revenues, increased non-oil export and reforms that give  incentives Foreign Direct Investment (FDI) would support the CBN’s ability to defend the local currency.

    He also said inflationary prospects driven by the conflicts in the Northern region is disrupting food supply, election spending and possible acceleration in the implementation of the N9.12 trillion 2018 budget.

    In the same vein, imminent increase in minimum wage increase may cause a spike in general price levels as consumer demand, he added.

    On the capital market, he said it was largely bearish. He said: “The year to date loss of the NSE All Share Index currently stand at about 17.32 per cent. Market capitalization stood at N11.70 trillion at the end of October 2018 from N13.609 it traded at the end of December 2017. This translates to investors loosing about N1.92 trillion of their investment during the year under review.”

    On the debt profile, he stated that the Debt Management Office (DMO) put the nation’s total debt stock at N22.38 trillion as at June 30. He reiterated that stakeholders are concerned about the fast-growing public debt profile and the countries fiscal sustainability.

    The LCCI chief maintained that the debt service to revenue ratio which currently stand at over 40 per cent is on the high side with implications for the country’s ability to deliver infrastructure investments.

     

     

    He also observed that the business community experienced frequent incidence of regulatory challenges leading to increased burden on businesses, higher cost of operation, waste of executive time and reputational consequences. According to him this manifested in form of arbitrary fines and charges, sanctions regular summon of corporate executives, “name and shame”.

    He said: “It was observed that a large part of infractions leading to culpability of industry operators were caused by inherent inefficiency or outright negligence of duty by the regulator, monitoring or security agencies. Regulatory over reach affected not just the doing business perception in Nigeria but also dampened investors’ confidence”.

     

  • LCCI picks holes in Postal Commission Bill

    •’Over 100, 000 jobs, N300b investment at risk’

    The Lagos Chamber of Commerce and Industry (LCCI) has expressed reservations over the Nigeria Postal Commission Bill  before the National Assembly.

    A statement signed by LCCI Director- General Mr. Muda Yusuf said the bill was inimical to private sector investments in the courier business and a negation of the Ease of Doing Business agenda of the Federal Government.

    He also said the bill was not in consonance with the fundamental principles of the Economic Recovery and Growth Plan (ERGP).

    Yusuf said the LCCI was worried by the provisions in the bill, which imposed an annual levy of 2.5 per cent of the turnover of courier companies to be paid to the proposed Postal Services commission.

    He said the Chamber was also worried by the powers conferred on the proposed Postal Services Commission to fix rates for courier services.

    Yusuf added that the LCCI was also concerned with the monopoly privilege conferred on the Nigerian Postal Service for delivery of items weighing 1kg and below.

    According to him, the provisions were not consistent with the espoused commitment of the National Assembly to private sector development, which was affirmed by the Senate

    The LCCI boss regretted that the bill has been passed by the Senate, awaiting concurrence by the House of Representatives.  “We appeal that the progression of the bill be halted and the hurtful provisions expunged,” he said.

    He requested that the bill be urgently reviewed by the National Assembly in the interest of economic progress and the welfare of citizens.

    He argued that the passage of the bill in its current form will put over 100, 000 jobs in the courier sector at risk and jeopardize the over N300 billion investments in courier services business and further worsen the country’s risk rating.

    The LCCI boss warned that the country was already grappling with enormous perception problems by investors and that overregulation of any sector of the economy will not serve the best interest of the Nigerian economy. Rather, it will undermine the capacity of investors to create jobs.

    Yusuf listed specific areas of concern on the bill to include the requirement for licensees mainly of courier companies to contribute 2.5 per cent of turnover for the purpose of funding the proposed Nigeria Postal Service Commission.

    He explained that Section 39(2) (e) required licensees to contribute 2.5 per cent of their turnover to the Commission’s fund, but posited that this singular requirement will impose considerable burden on courier companies.

    He said: “This is outrageous, having regard to the numerous taxes and levies already being paid by the courier companies.

    “These include the company tax of 30 per cent, Value Added Tax (VAT), education tax, airport charges, Federal Airport Authority (FAAN) charges, and other taxes imposed by the states of the federation, local government charges, signage fees of various states, etc.”

    Yusuf reiterated that the bill was not in consonance with the current Ease of Doing Business agenda of government, neither was it in tune with the letters and spirit of the ERGP, which seeks to promote and incentivise private sector investment.

    He said the bill proposes that courier companies shall not charge any rates or tariffs unless approved by the Commission, while Section 17(2) criminalises charging rates not approved by the Commission.

    Yusuf reiterated that the provision was a complete negation of the key principles of private enterprise, which the ERGP was seeking to promote.

    According to him, this would amount to an overregulation, which should not happen. He added that courier service was not a social service but a business, which should allow for each player to design its business model for survival and sustainability.

    Continuing, Yusuf stated that social services such as education and health services offered by private providers are not subjected to such an overbearing pricing legislation.

    He said the best way to protect consumers is to ensure a virile competitive environment among service providers, not by fixing rates.

    Yusuf argued that rate fixing for courier companies was not only counterproductive, but will also stifle investment in the sector and give very adverse signals to potential investors in the economy.

  • Essayists win at LCCI, UNIFOAM, awards

    Lagos State Deputy Governor, Dr Idiat Adebule, has underscored the importance of exposing young ones to entrepreneurship education early.

    She praised the Lagos Chambers of Commerce and Industry (LCCI) for focusing its secondary school essay competition this year on entrepreneurship.

    Participants wrote on: “The Role of Entrepreneurship in National Development” for the competition.

    Dr Adebule said writing on the topic would help the young ones learn how entrepreneurship helps economic growth and development.

    She said: “I am aware that the theme for this year is: “The Role of Entrepreneurship in National Development”. We cannot over-emphasise the significance and roles of entrepreneurship to the socio-economic development of any nation. It has been described as the driving force of decentralising and restructuring an economy while increasing and enhancing the financial capability of individuals.

    “Furthermore, entrepreneurship creates job opportunities, promotes and gives strength to small and medium-sized enterprises (SMEs). Over the years, a high level of entrepreneurship is what has led to economic development of many nations we see today.

    “As a matter of fact, well-developed countries are more interested in entrepreneurs than people in white collar jobs. Today, education is being redefined to produce entrepreneurs and not job seekers.”

    Also speaking, former Lagos State Deputy Governor, Princess Sarah Sosan, whose firm, GFR Educational Services Ltd co-ordinated the competition for LCCI, said 29 schools participated in the competition out of 150. She thanked the sponsors, Skool Media, UNIFOAM, First Registrars, Smile Communications Limited, and others for their support.

    “I humbly express our appreciation to our worthy partners and sponsors on the programme, who are both individuals and organisations, for deeming it fit to invest in the future of these children thereby building a stronger tomorrow in our nation,” she said.

    The competition rained prizes on all  29 participants.  They got attractive gifts and cash awards from the various sponsors, including UNIFOAM Group, an indigenous manufacturer of quality foam products and beddings.

    For winning the competition, Mary Leonard of  Festac Girls Senior Secondary School, Festac Town, got N250,000, a plaque, Samsung Tablet, Smile modem and a certificate.  Second placed Bukola Akintunde of Queen’s College Yaba got N100,000, and other gifts; while third placed Chidera Duru of Lagoon Secondary School, Lekki, got N75,000 and other gifts.

    Fourth and fifth placed Sonaike Bolarinwa of Dowen College, Lekki, and Desree Isibor of Dansol High School, Ogba, both got Samsung tablets and certificates.

    Twenty others got mattresses, pillows and beddings from UNIFOAM Group, while some got a company to paint the classrooms in their schools.

    Head, Commercial (Lagos and Southern Nigeria), UNIFOAM Group, Udochi Ajuzie-Nwani, said the firm, which opened in 1981, was proud to sponsor the event.

    “We maintain a strong stance in supporting and encouraging the early involvement of the younger minds into entrepreneurship, which we have displayed by rewarding these young stars who have displayed uncommon knowledge in the just concluded essay competition,” he said.

  • Fuel supply: NNPC seeks to increase retail outlets

    The Nigerian National Petroleum Corporation (NNPC) says it is set to increase its 14 per cent market share in the nation’s downstream petroleum retail market.

    The Group Managing Director of NNPC, Dr Maikanti Baru, said this during NNPC Special Day at the ongoing Lagos International Trade Fair on Thursday in Lagos.

    The News Agency of Nigeria, reports that the fair was organised by the Lagos Chamber of Commerce and Industry (LCCI).

    Represented by Mr Ikem Obi, Chief Operating Officer, NNPC Downstream, Baru said the corporation aimed to go beyond its current 14 per cent market share of the downstream sector.

    “To aid in achieving this target, we have expanded our retail outlets, notable examples are, indeed, located here in the South-West.

    “For example, we have the newly constructed ultra-modern mega station along the Lagos-Ibadan Expressway.

    “The corporation is leaving no stone unturn to ensure that Nigerian Pipeline and Storage Company’s existing infrastructure are rehabilitated and new ones added as necessary steps to guaranteeing efficient storage and distribution of petroleum products across the nation, thereby ensuring supply reliability and energy security,” he said.

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    Baru said NNPC had recently completed the rehabilitation and restoration of the vandalized 36” and 42” QIT and 48” Forcados Oil Terminal (FOT) Export pipelines leading to resumption of production operations.

    “The corporation has also completed the repair of the vandalized 20” ELPS-A pipeline, thereby ensuring gas supply to gas-fired power plants and also supply into the West African Gas Pipeline.

    “We have also awarded the contract for the construction of the Ajaokuta-Kaduna-Kano (AKK) line gas infrastructure projects,” he said.

    He said that NNPC was expanding and integrating its gas pipeline network system to meet the unprecedented domestic gas demand and have recorded significant progress in the execution of key on-going gas pipeline infrastructure projects.

    He said that all these activities would invariably impact positively on the economy in view of the role of the oil and gas industry as the number one foreign exchange earner for the country and NNPC’s position as managers of government interests in the sector.

    Earlier, Mr Babatunde Ruwase, President of LCCI, said that the role of NNPC could not be overemphasised in ensuring petroleum products supply.

    He urged the Federal Government to expedite the passage of the Petroleum Industry Bill (PIB) and also create an enabling environment for businesses to thrive.

  • LCCI, UNIFOAM, others reward excellent essayists

    Lagos State Deputy Governor, Dr Idiat Adebule, has underscored the importance of exposing young ones to entrepreneurship education early.

    To this end, she praised the Lagos State Chambers of Commerce and Industry (LCCI) for focusing its secondary school essay competition for this year on entrepreneurship.

    Participants wrote on: “The Role of Entrepreneurship in National Development” for the competition.

    Dr Adebule said writing on the topic would help the young ones learn how entrepreneurship helps economic growth and development.

    She said: “I am aware that the theme for this year is “The Role of Entrepreneurship in National Development”. We cannot over-emphasize the significance and roles of entrepreneurship to the socio-economic development of any nation. It has been described as the driving force of decentralizing and restructuring an economy while increasing and enhancing the financial capability of individuals.

    “Furthermore, entrepreneurship creates job opportunities, promotes and gives strength to small and medium-sized enterprises (SMEs). Over the years, a high level of entrepreneurship is what has led to economic development of many nations we see today.

    “As a matter of fact, well-developed countries are more interested in entrepreneurs than people in white collar jobs. Today, education is being redefined to produce entrepreneurs and not job seekers.”

    Also speaking, former Lagos State Deputy Governor, Princess Sarah Sosan, whose firm, GFR Educational Services Ltd coordinated the competition for LCCI, said 29 schools participated in the competition out of 150.

    She thanked the sponsors, Skool Media, UNIFOAM, FIRST REGISTRARS, Smile Communications Limited, and others for their support.

    “I humbly express our appreciation to our worthy partners and sponsors on the programme who are both individuals and organisations, for deeming it fit to invest in the future of these children thereby building a stronger tomorrow in our nation,” she said.

    It rained prizes for all 29 participants.  They got attractive gifts and cash awards from the various sponsors, including UniFoam Group, an indigenous manufacturer of quality foam products and beddings.

    For winning the competition, Mary Leonard of Festac Girls Senior Secondary School, Festac Town, got N250,000, plaque, Samsung Tablet, Smile modem and a certificate.  Second placed Bukola Akintunde of Queen’s College Yaba got N100,000, and other gifts; while third placed Chidera Duru of Lagoon Secondary School Lekki got N75,000 and other gifts.

    Fourth and fifth placed Sonaike Bolarinwa of Dowen College, Lekki, and Desree Isibor of Dansol High School, Ogba, both got Samsung tablets and certificates.

    Twenty others got mattresses, pillows and beddings from UNIFOAM Group, while some got a company to paint the classrooms in their schools.

    Head, Commercial (Lagos and Southern Nigeria), Unifoam Group, Udochi Ajuzie-Nwani, said the firm which opened in 1981 was proud sponsor the event.

    “We maintain a strong stance in supporting and encouraging the early involvement of the younger minds into entrepreneurship which we have displayed by rewarding these young stars who have displayed uncommon knowledge in the just concluded Essay competition,” he said.

  • LCCI rewards essayists

    The Lagos Chamber of Commerce and Industry (LCCI) rewarded secondary school pupils that excelled in its 2018 Secondary School Essay Competition Friday last week.

    Forty-eight pupils (38 girls and 10 boys) from nine public, three mission, one Federal Unity College, and 15 private schools participated in the competition titled: The Role of Entrepreneurship in National Development.

    The top three winners were rewarded with N250,000 for the First; N100,000 for the second, and N75,000 for the third. They also got Samsung Galaxy tablet, internet modem and certificates, while other participants were rewarded with consolation prizes.

    The initiative gave publicity to the schools that participated as their names would be enlisted on the EduFirst platform.

    The Deputy Governor of Lagos State, who was represented by the Permanent Secretary, Lagos State Ministry of Education, Mrs Adebunmi Adekanye, praised the initiative.

    She said:” This initiative has been helping to improve on the capacity of an average Nigerian child in understanding the Nigerian economic issues in order to contribute to the growth and development of the nation. Entrepreneurship is the driving force of decentralising and restructuring an economy while increasing and enhancing the financial capability of individuals. Entrepreneurship creates job opportunities, promotes and gives strength to small and medium- sized enterprises (SMEs). High level of entrepreneurship is what has led to economic development of many nations we see today. Today education is being redefined to produce entrepreneurs and not job seekers.”

    She further admonished the pupils to be focused, diligent, resourceful and have a clear vision for their lives and to fulfill their glorious destiny saying: Where There Is No Vision The People Perish.

  • Nigeria can’t blindly sign agreements, Says Buhari

    President Muhammadu Buhari on Friday said that Nigeria is too big and too diverse to blindly sign agreements without understanding the consequences of such actions.

    Buhari made the remark while receiving representatives of the Lagos Chamber of Commerce and Industry (LCCI) led by its President, Mr Babatunde Ruwase, at the Presidential Villa.

    A statement by the Special Adviser on Media and publicity, Femi Adesina, said that the President used the occasion of his audience with members of the LCCI to shine more light on his decision to inaugurate a Presidential Committee last Monday to assess the potential costs and impact of the agreement establishing the African Continental Free Trade Area (AfCFTA) for Nigeria.

    He said ‘‘Nigeria is still assessing the impact of this agreement on its backward integration and import substitution policies.

    ‘‘Specifically, the provisions on rules of origin and transhipment were matters of concern to us.

    ‘‘Already, some of the treaties we are party to have been significantly abused resulting in massive smuggling which has crippled many of our local industries and destroyed millions of jobs.

    ‘‘To avoid these past mistakes, we conducted vast consultations across the country in which the LCCI participated. The responses have been mixed,’’ the President said.

    On the issue of the gridlock in Apapa, Lagos, President Buhari acknowledged that the situation was a major concern to all.

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    ‘‘The work on Wharf road is in progress. We will continue to do our best to expedite the repair works at the Ijora Bridge without compromising quality.

    ‘‘We have also directed the Nigerian Railway Corporation to use their infrastructure in the ports to support the evacuation efforts, thereby further decongesting the area.

    ‘‘Be assured that the completion of these projects is a major priority of this administration,’’ he said.

    Speaking earlier, Ruwase while commending the Federal Government for the series of Executive Orders focused on promoting the ease of doing business in the country, stressed the need to improve the regulatory environment in the oil and gas industry.

    He appealed to the executive arm of the government to expeditiously consider the Petroleum Industry Bill through appropriate collaborative actions with the National Assembly.

    The LCCI president also drew the attention of the President to the numerous abandoned Federal Government properties in Lagos and the economic waste it represents.

    He urged the Federal Government to either return the property to Lagos State government which is the original owner of the land; or give them out on lease to the private sector.

    Speaking with State House correspondents at the end of the closed doors meeting, he said “We commended the government on Ease of Doing Business. We also asked the government to digitize its operations as part of measure to tackle corruption. That will reduce man to man interactions in carrying out government business. We advised government to use this all through its processes.

    “We also tasked government on the Petroleum Industry Governance BIll PIGB. We need to pass this quickly because many countries are discovering crude oil and this has made investments in the sector very competitive.

    “We are contending with other nations for investment in the sector. So we need to attract investors by reducing unnecessary bottlenecks. Instead of giving incentives, the feelers we are getting is that the NPA is going to levy $1 per barrel of crude and other such levies are going to be imposed. We urged them to quickly pass the law to make our oil and gas more competitive to investors.

    “We also talk about the Apapa gridlock. Instead of making profits, we are counting loses by the day because of demurrage , which has grounded our export drive. What the government need to do is to use pipeline to transport imported petroleum products.

    “We also mentioned to his Excellency that we shall be celebration of our 130th anniversary.

    “In the area of power, we also urged government to look into the issues. The problem we have is distribution. With what we are generating today, we cannot distribute more than 4000 megawatts. We should be thinking more of how to deal with distribution and transmission.” he said

    According to him, the President promised to do something about the Apapa issues.

    “The Central Bank of Nigeria, the Independence building, the National Assembly, the NITEL building etc.

    “We Appealed to the federal government that they either give them to the Lagos State government or put them into proper shape so that they can be put into proper use to generate money for the government. They are currently wasting away and providing abode for hoodlums, criminals and the likes.” he stated.

  • LCCI holds conference on mental wellness

    The Women Group of the Lagos Chamber of Commerce & Industry (LCCI) hosted women top executives and entrepreneurs at its fourth international conference designed to evolve strategies for managing mental wellness.

    The Women Group of the LCCI is charged with the responsibility of coordinating the activities of female members of the body in the promotion of their businesses and key projects of the LCCI.

    The group also arranges programmes geared towards promoting women empowerment. It also networks with women organisations at the state, federal and international levels for the aforementioned.

    The theme of the conference, which held in Ikoyi, Lagos, during the week, was “Mental Health/Wellness.”

    A statement by the Chair of the Women Group of the LCCI, Mrs. Olajumoke Fashanu, said the conference brought together notable women from diverse backgrounds in business and industry, as well as students from tertiary institutions.

    She said the aim was to educate participants on how to equip themselves with sufficient knowledge on mental wellness, which could be as a result of the negative effects of drugs and substance-related abuse, which results in depression and mental imbalance.

    The quest speaker for this year’s conference was the Lagos State Commissioner for Health, Dr. Jide Idris.