Tag: policy

  • Lagos launches new environmental management policy, corps

    Lagos launches new environmental management policy, corps

    LAGOS State Governor, Mr Akinwunmi Ambode on Friday launched the much-anticipated new environmental management policy encapsulated in the Cleaner Lagos Initiative (CLI), expressing optimism that the development would drive the State to the desired future of achieving clean, hygienic and flood-free environment.

    Speaking at the soft launch of the CLI held at Agege Stadium, Governor Ambode said the initiative was an enduring solution carefully designed to address the shortcomings in the management of the environment, as well as accelerate seamless cleaning of the State.

    The governor, who was represented by the State’s Deputy Governor, Mrs Idiat Adebule, said since the inception of his administration, sanitation had been given priority as it was important for maintaining a secure and more prosperous State.

    He said: “To roll back sanitation shortcomings and accelerate seamless cleaning of our environment, the Lagos megacity was in dire need of an enduring solution that would match the needed technology with the massive investment required for its attainment.

    “It is this void that the CLI has come to fill by creating an environment for the private sector to harness international best practice in the vital area of solid waste management and consequently free public funds for other beneficial uses.

    “As a result, residential waste collection and processing which is concessioned to a reputable and competent multinational Waste Services Company is being given a new lease of life with 600 brand new compactors and 900,000 electronically tracked bins, while wastes generated by the commercial sector would be handled by licensed waste management operators (PSP).”

    Governor Ambode added that for efficient collection and disposal operations, the State Government has also concessioned three Transfer Loading Stations/Material Recovery Facilities at Agege, Oshodi and Simpson and three Waste Depots at Mushin, Ogudu and Simpson with the aim of rehabilitating and retrofitting the facilities to world class standard under Build, Finance, Operate and Transfer (BFOT) model.

    “This is what the CLI represents as it aims to revitalize the entire solid waste management sector to have far-reaching benefits and multiplier effects for the State in particular, and the country at large. The new initiative will usher in new financially viable and technologically driven sub-sector to the Lagos economy, creating new business and job opportunities, including over 40,000 direct and indirect jobs with high poverty alleviation emphasis to serve as a model for the entire country,” the governor said.

    Earlier, Commissioner for the Environment, Mr. Babatunde Adejare, in his welcome address, said the soft launch of the CLI with 920 LAGESC Corps, marine waste collection and mechanized sweeping, was a dream come true in the implantation of the new environmental initiative, just as he expressed confidence that the development would translate to improved health and quality of life for residents of the State.

    He also announced that the State Government would soon role out other components of the CLI such as residential waste collection and processing, commercial, industrial, hazardous and medical waste collection, as well as secondary and tertiary drainage

  • UI raises panel to review gender policy

    The authorities of the University of Ibadan are planning to raise a committee to review the institution’s gender policy to accommodate new trends in gender balance.

    Its Vice Chancellor, Prof. Abel Olayinka, disclosed this at a conference in honour of the renowned historian and gender crusader, Prof Bolanle Awe, at the university.

    The conference with the theme: “Gender Studies in Africa: Imagined and emerging trends,” was organised by the varsity’s Institute of African Studies.

    Olayinka, who was represented by his Deputy (Research, Innovation and Strategic Partnership) Prof Adenike Adeyemo, recalled that the institution introduced gender policy five years ago, but the authorities had decided to set up a committee to review the gains  since inception to update it for more effectiveness.

    According to Olayinka, the committee would investigate, among others, how many female PhD holders have been produced by the institution, compared with their male counterparts. The committee would also look at how many females are senior lecturers for gender balance in recruitments by the institution.

    Olayinka explained that the review would help the university strengthen the policy to achieve gender balance in the institution.

    He emphasised the need to be gender sensitive in all university policies to allow both sexes to be the best they can.

    The VC said he would like to see the possibility of female students taking maternity leave and creche facilities at conferences.

    He described the honour for  Awe as well-deserved, particularly coming from the institute where she worked before retiring.

    The guest lecturer, Prof Janice Olawoye, examined the differences in personality traits of male and female, and their implications in living and working together.

    She concluded that rather than use unique traits of each sex against them, the society and organisations should maximise the benefits of those traits for the progress of the society and happiness of each sex.

  • UI raises panel to review gender policy

    The authorities of the University of Ibadan have concluded plans to raise a committee to review the institution’s gender policy, to accommodate new trends in gender balance.

    The Vice Chancellor, Prof. Abel Olayinka, disclosed this at a conference in honour of the renowned historian and gender crusader, Prof Bolanle Awe, at the university.

    The conference with the theme: “Gender Studies in Africa: Imagined and emerging trends,” was organised by the Institute of African Studies of the university.

    Olayinka, who was represented by his Deputy (Research, Innovation and Strategic Partnership) Prof Adenike Adeyemo, recalled that the institution introduced gender policy five years ago, but the authorities had decided to set up a committee to review the gains of the policy since inception with a view to updating it for more effectiveness.

    According to Olayinka, the committee would investigate, among others, how many female PhD holders have been produced by the institution, compared with the number of their male counterparts. The committee would also look at how many females are senior lecturers are gender balance in recruitment exercises undertaken by the institution in recent times.

    Olayinka explained that the review would help the university improve and strengthen the policy, in the efforts to achieve gender balance in the institution.

    He emphasised the need to be gender sensitive in all university policies in order to allow both sexes to be the very best they can.

    The VC said he would like to see the possibility of female students taking maternity leave and creche facilities at conferences.

    He described the honour for Prof Awe as well-deserved, particularly coming from the institute where she served for years before retiring.

    In her presentation, the guest lecturer, Prof Janice Olawoye, examined the differences in personality traits of male and female, and their implications in living and working together.

    She concluded that rather than use unique traits of each sex against them, the society and organisations should maximise the benefits of those traits for the progress of the society and happiness of each sex.

     

  • Pharmaceuticals seek policy coherence

    •Firms invest N20 billion in factory upgrade 

    Pharmaceutical companies in Nigeria have canvassed policy consistency to help them remain in business.

    The firms, under the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), lamented that over 120 of them were being threatened by policy flip-flops.

    At the PMG-MAN/Private Sector Health Alliance of Nigeria (PHN) Forum in Abuja, PMG-MAN Chairman Mr. Okey Akpa said drug makers were not carried along when major policies affecting them were made.

    He said, for instance, the Common External Tariff (CET) threatened to wipe out the industry between June 2015 and last November, until the Federal Government intervened.

    “The CET threatened to wipe us out until the last year’s fiscal policy changed the dynamics. The CET provides for five to 20 per cent tariff for importation of pharmaceutical raw materials, but allows finished medicines to enter into any country in the sub-region at no duty.

    “But we are grateful that the Federal Government intervened with the 2016 Fiscal Policy, which imposed tariffs on four categories of imported drugs,” Akpa said.

    He stressed the need for an import strategy that will hand over importation to those who are already manufacturing medicines. This, he said, means that they have plans to start producing the drugs.

    “When you hand importation to those who are not manufacturing and have no plan to do so, you are discouraging local manufacturing,” Akpa said.

    PHN Managing Director/CEO, Muntaqa Umar-Sadiq, said there was the need to create an enabling environment for local manufacturers to thrive through effective supply chain management.

    “At the heart of this vision is the Africa Resource Centre, which is targeted at mobilising the private sector and the academia to complement other actors currently supporting the public health supply chain, to accelerate and sustain improvement in key supply chain outcomes,” he said.

    Umar-Sadiq stressed the need for collaboration by all stakeholders in the value chain to ensure efficiency in drug distribution and enable the country achieve self-sufficiency in drug production.

    Fidson Healthcare Plc Managing Director/CEO, Mr. Fidelis Ayebae, said N20 billion had been spent by pharmaceutical firms in the last five years in factory, quality and facility upgrades, describing this as “a monumental achievement”.

    Dangote Industries Limited President, Alhaji Aliko Dangote, said that logistics remained the biggest challenge facing manufacturers after energy problem, stressing the need for synergy to save costs.

    “How do we partner with the government in such a way that it brings returns on investment?” Dangote asked, noting that “as pharmaceuticals, we should not all bid for the same contract, but create efficiency in warehousing.”

    National Health Insurance Scheme (NHIS) Executive Secretary, Usman Yusuf, called for partnership between drug makers and the agency to widen health insurance coverage.

    He said the only way to ensure efficiency in drug distribution was to see a good healthcare system as a human right and a tool for poverty alleviation.

    “Our health insurance coverage is still very low. We need partnership with all the stakeholders to ensure the insurance scheme is implemented at all levels,” he said.

  • No going back on policy

    No going back on policy

    TRCN Registrar/CEO Prof Segun Ajiboye, says there is no going back on the policy. The council he holds, has the government’s backing to declare teachers who fail to take the exam unqualified by January when the policy takes effect. Ajiboye spoke with ADEGUNLE OLUGBAMILA

    How determined is the council to sustain this novel idea?

    Yes, we are prepared! This is what is done in other professions all over the world. For instance, you cannot be a chartered accountant, if you have not passed ICAN (Institute of Chartered Accountants of Nigeria) examination . You cannot be a certified engineer if you don’t have COREN (Council for the Regulation of Engineering in Nigeria) certificates.

    Before now  we only registered teachers with their (teachers) certificates. Now that we are fully established, they will have to henceforth sit for and pass before they are qualified to be in the classroom

    What is the rationale behind this initiative?

    It’s simple. If we want quality education, it begins with our teachers. We must improve on their quality.

    We no longer want half-baked doctors, engineers, scientists and so on because teachers are central to all these professions.

    By (Friday) June 16, we are stopping normal registration, so anybody who has not registered until that deadline will have to sit for the exam which will come up in October.

    I can assure you that henceforth, teaching will no longer be an all-comers affair.  As teacher regulatory body, we are already statutorily empowered to declare an individual as qualified or not. Anybody who does not have the certificates will no longer be allowed to practise.

    But do you think this idea will appeal to teachers considering the  fact that the  policy has not been in place for years in Nigeria?

    I can categorically tell you that already, the response has been spontaneous and encouraging.

    First, we already have the endorsement of both the  Minister of Education and inister of state.    Another thing now, is that at present, we are at the level of persuasion, by January (next year) enforcement will  begin in full force. We have the law on our side which identifies TRCN as the only organ that can declare you a teacher. I also want to use this opportunity to enjoin all practising teachers who have not yet obtained the TRCN certificates to register for this exam. As from January, unregistered teachers will no longer be allowed to practise.

    What  of the  cost; hope it will not be on the high side?

    Not at all! We are not going to charge arbitrarily.

    We have designed the cost in such a manner that fits into individual’s category.

    We have four categories- Category A is for Ph.D holders; category B comprises those with masters; Category C are those who have first degree  while Category D is for NCE graduates.

  • Foreign policy in the service of domestic agenda

    Diplomacy as an art of inter-state relations started in medieval Europe when younger members of the royalty who did not have an appetite for soldiering found a calling in diplomacy  by representing the various crowned heads of European countries in each other’s courts. Since then, recruitment into the diplomatic corps has gone beyond royalty but the tradition of its roots still prevail in the ceremonies surrounding diplomatic posting, reception, departure and even the way diplomatic expressions and communication are couched. This is why up till today, ambassadors and high commissioners are addressed as excellencies as if they were heads of government.

    Technically speaking, heads of diplomatic missions represent not their countries but their heads of state. In other words foreign policy is the preserve of the heads of state. Foreign ministers, ambassadors and others serve as aids to the heads of state in the formulation and execution of a country’s foreign policy. Because of this personal nature of a country’s foreign policy, the head of state can manipulate a country’s foreign policy to suit particular interests sometimes not absolutely related to his country’s interest. This scenario is however rare. When there are problems at home, a country’s President or Prime Minister can divert domestic attention abroad and when such policies abroad are successful, it would bring glory to the country and pressure on government would be reduced.

    During the restoration of the Bourbon dynasty in France after the regicide of the French Revolution and the defeat of Napoleon Bonaparte,  the shaky  Bourbon regime employed the search for glory abroad to divert French  attention from the failure and inadequacy of the regime at home by embarking on an African empire in Algeria. This policy associated with the France’s foreign minister, Prince Auguste Jules de Polignac only succeeded to a point before the reality of the failure of domestic policy led to the undoing of the regime and its eventual removal thus ending a regime that had lasted for hundreds of years. This failure of the French experiment has however not decoupled foreign policy from its use to serve domestic politics. This tendency became apparent during the period of Britain’s paramountcy in the world during the 19th century. The use of foreign policy especially what has gone down into history as gun boat diplomacy was particularly effective when the British shelled some Greek ports over a minor incident but blew up the incident to celebrate British power. The mid nineteenth century which was the age of European jingoism and imperialism was captured by the British Prime Minister Sir John Palmerston’s statement following the abuse of one Don Pacifico, a Portuguese of British nationality in   Greece in 1850.  He said “just like the Romans of old could say civis Romanus sum and expect the might of the Roman army to protect him, so should a Briton be able to say civis   Britanicus  sum and expect the long arm of the British navy to protect him”. Another example from England was when the Jewish prime minister of Great Britain Benjamin Disraeli declared queen Victoria Empress of India in 1877 in a move to pander to the vanity of the British people so that they could forget or ignore growing social problems and inequality in the country . All these preambles are done to give the idea that using foreign policy to serve domestic ends has a long history behind it .

    In recent times of the American century, every new American president has always found foreign intervention or foray into other peoples’ countries to be useful in announcing that a new sheriff is in town. From Truman to Trump, one can mention a few incidents of American demonstration of power and will in foreign policy. From the Korean War of 1953 when  Harry Truman intervened to stop the communist take-over of the Korean Peninsula, to   Dwight  David  Eisenhower’s interventions in  Iran, Guatemala and other South American countries under the so-called  policy of containment of communism. Kennedy’s policy of alliance for progress led to meddling in many South American countries with eventual unsuccessful Bay of Pigs invasion of Cuba and the mission creep in Vietnam, Lyndon Johnson’s full scale war in Vietnam and Richard Nixon’s extension of the Vietnam war to Laos and Cambodia. Even the apparently pacific natured Jimmy Carter had his debacle in Iran while Ronald Reagan had his hands full by bombing Libya, driving out of power of Noriega in Panama, invasion of the Caribbean island of Grenada. Bush senior drove out the Iraqis out of Kuwait while Clinton went after Al Qaeda by bombing Sudan and getting rid of the Serbian dictator   Miloshevic while the younger Bush fought full scale wars in Iraq and Afghanistan and changing regimes at will.

    Obama while not starting his own wars expanded  the Bush wars before winding them down in Iraq and Afghanistan while the new Donald Trump regime felt compelled to flex his muscles by unleashing cruise missiles on Syria to demonstrate what he calls a strategy of peace through strength. The Trump administration facing all kinds of probes at home in connection with his presidential campaign’s alleged collusion with Russia may constantly have to call on foreign policy to salvage his regime at home.  Russia since the disintegration of the Soviet Union has felt compelled to defend what their leaders call “Russia abroad” meaning defending the millions of Russians in the remaining 14 republics into which the Soviet Union broke into. Its dismembering of Georgia and annexation of Crimea from Ukraine were actions taken to assuage Russian nationalist feelings following the loss of its empire and to cover increasing economic problems at home. His Syrian involvement is to demonstrate nationalistic feeling of Russia still remaining a global player in world politics. The point being made here is that when a country is faced with challenges at home and decides to embark on some foreign activities abroad, its people would normally rally round the leader. The caveat is that such an adventure must be brief and successful. If it is too long, people will become disaffected and wearied. This practice of foreign relations being called to assist a government at home is not limited to big powers alone; even countries in the global power peripheries also indulge in it. The examples of Turkey fighting the Greeks over Cyprus or India fighting Pakistan over Kashmir or Ethiopia intervening in Somalia come to mind. In these days when soccer in particular has replaced military competition, people become patriotic supporters of their teams and indeed El Salvador fought a brief war over soccer with neighbouring Honduras!

    Somebody recently asked me why Nigeria has suddenly become mute in international affairs. We have our problem of confronting our own local variant of international terrorism in Boko Haram. Nigeria used to help stabilize other African countries from Tanzania in the 1960s to assisting the liberation of Southern Africa and helping in extirpating the racist and odious regime of apartheid in South Africa in the 1980s and 1990s. Our country was also the arrow head of ECOMOG that by and large, helped to pacify the terribly distressed countries of Liberia, Sierra Leone and recently Guinea-Bissau and even Ivory Coast.  Nigeria sent troops to an international coalition to confront Al Qaeda in the Saharan nation of Mali. Recently, Nigeria provided leadership in forcing out the sit-tight Alhaji Yahyah  Yahmeh from his stranglehold on The Gambia. We have not tried to use these events to unify our people at home and to score political goals. Perhaps the largely successful Nigeria-led decolonization of Southern Africa leaves not much dramatic victories to be won. Our challenge is now economic development which rather than being dramatic can only be incremental  and sometimes imperceptible changes. Furthermore, the medical challenge facing our president presents a formidable challenge to activism abroad. This is because the presence of the president in inter-state relations can be most important and decisive. In spite of this challenge, the president has visited most countries in West Africa and also the critical countries of Niger, the Cameroon and Chad with which Nigeria is involved in the fight against Boko Haram.  It seems to me that Nigeria needs to emphasize more the international dimension of the Boko Haram conflict and therefore seek more international support and make more noise about fighting  on behalf of the international community because if Boko Haram is successful, it will have widespread ramifications in west and central Africa.

  • Pharmaceuticals canvass policy coherence

    •Invest N20b in factory upgrades in five years

    Pharmaceutical companies in Nigeria have canvassed policy consistency and clarity as well as a new strategy for drug import to enable them remain in business.

    The pharmaceutical companies, who are members of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), lamented that over 120 of its members were being threatened by policy flip-flops.

    Making this known at the PMG-MAN/Private Sector Health Alliance of Nigeria (PHN) Forum held in Abuja, PMG-MAN Chairman Mr. Okey Akpa said drug makers were not carried along when major policies affecting them were made.

    He said, for instance, the Common External Tariff (CET) threatened to wipe out the industry between June 2015 and last November, until the Federal Government intervened.

    “The CET threatened to wipe us out until the last year’s fiscal policy changed the dynamics. The CET provides for five to 20 per cent tariff for importation of pharmaceutical raw materials, but allows finished medicines to enter into any country in the sub-region at no duty.

    “But we are grateful that the Federal Government intervened with the 2016 Fiscal Policy, which imposed tariffs on four categories of imported drugs,” Akpa said.

    He stressed the need for an import strategy that will hand over importation to those who are already manufacturing medicines. This, he said, means that they have plans to start producing the drugs.

    “When you hand importation to those who are not manufacturing and have no plan to do so, you are discouraging local manufacturing,” Akpa said.

    PHN Managing Director/CEO, Muntaqa Umar-Sadiq, said there was the need to create an enabling environment for local manufacturers to thrive through effective supply chain management.

    “At the heart of this vision is the Africa Resource Centre, which is targeted at mobilising the private sector and the academia to complement other actors currently supporting the public health supply chain, to accelerate and sustain improvement in key supply chain outcomes,” he said.

    Umar-Sadiq stressed the need for collaboration by all stakeholders in the value chain to ensure efficiency in drug distribution and enable the country achieve self-sufficiency in drug production.

    Fidson Healthcare Plc Managing Director/CEO, Mr. Fidelis Ayebae, said N20 billion had been spent by pharmaceutical firms in the last five years in factory, quality and facility upgrades, describing this as “a monumental achievement”.

    Dangote Industries Limited President, Alhaji Aliko Dangote, said that logistics remained the biggest challenge facing manufacturers after energy problem, stressing the need for synergy to save costs.

    “How do we partner with the government in such a way that it brings returns on investment?” Dangote asked, noting that “as pharmaceuticals, we should not all bid for the same contract, but create efficiency in warehousing.”

    National Health Insurance Scheme (NHIS) Executive Secretary, Usman Yusuf, called for partnership between drug makers and the agency to widen health insurance coverage.

    He said the only way to ensure efficiency in drug distribution was to see a good healthcare system as a human right and a tool for poverty alleviation.

    “Our health insurance coverage is still very low. We need partnership with all the stakeholders to ensure the insurance scheme is implemented at all levels,” he said.

  • Kalu champions Buhari’s agric policy

    Kalu champions Buhari’s agric policy

    President Muhammadu Buhari has found a worthy ally and voice in former governor of Abia State Orji Uzor Kalu. On his 57th birthday, Chief Kalu stepped away from his Abuja mansion, even shunned his comfortable country home, choosing his two hectares farm to eat his birthday cake. At the farm, his aides and well-heeled friends were nowhere in sight, only his farm workers.

    It was just the way the former governor liked it. It was probably also the way Mr President liked it.

    Taking office as president two years ago, the commander-in-chief stressed the need for Nigerians to return to the farm, arguing that for the country to overcome its dependence on crude oil the clear path to follow is agriculture.

    While many Nigerians were still dragging their feet, the former governor and successful businessmen and stalwart of the All Progressives Congress (APC) has heeded the President’s call.

    Kalu did not only drive the farm tractor to till the land, he equally joined his farm workers to cut and plant cassava stems in the ridges. He inspected other activities on the farm.

    Spending the day on the farm with their boss was not enough for the farm workers, who also pleaded with him to join them in cutting a beautiful cake they made for him.

    Kalu, who for over 20 years have refused to celebrate his birthday in any form, was filled with emotion seeing the love shown to him by people on his payroll. He obliged them to cut the birthday cake.

    The former governor was later joined on the farm by some of his associates who had gone to his Camp Neya house and on learning that he was at the farm, came over to identify with him.

    Speaking to newsmen after inspecting ongoing work at the farm, Kalu said that he decided to mark his birthday in the farm with his workers as a way of heeding the call by President Buhari for Nigerians to go back to the farm not to only produce enough food for the people, but also to boost the nation’s economy.

    According to Kalu, over the years he had never celebrated his birthday openly but decided to do that this year in the farm to encourage Nigerians to go back to the land.

    He said that time had passed when farming was left only in the hands of peasant farmers who he said lacked both the financial capability and the technical knowhow to produce enough to feed the nation, not to talk of exporting.

    “Time has passed when farming was left in the hands of those with little or no knowledge about farming. I live in Abuja and also have so many businesses across the globe. But because of the seriousness I attach to farming, I decided to come home to farm. The rich and those that have the professional training should join in the campaign in ensuring that there is abundance of food in the country.”

    He disclosed that he would be planting cassava only at his over two hectares farmland at Okafia Igbere while another two hectares of land at Ugwueke would be used to plant palm seedlings.

    Kalu, who has keen interest in taking the youths off the streets through gainful employment, said that he was optimistic that the two farms would also create jobs for many youths in Bende Local Government Area and the state.

    He urged the well-to-do and those with the technical knowhow in the country to heed the call of the President.

     

  • Forex policy has killed 200 factories, claims MAN

    Forex policy has killed 200 factories, claims MAN

    The foreign exchange (Forex) of the Central Bank of Nigeria (CBN) banning importation of 41 items has forced more than 200 factories to close down in the last two years, the Manufactueres Association of Nigeria (MAN) has said.

    MAN’s Director-General Mr. Segun Ajayi-Kadir, called for a review of the policy to save the sector. He spoke when he led some members of the association to visit   Nigerian Shippers’ Council (NSC) Executive Secretary, Hassan Bello.

    “The restriction on the 41 items should be reviewed to remove the raw materials that are in it,” he said.

    Ajayi Kadir said 95 out of the more than 680 tariff lines in the 41 items were raw materials that are not locally available. “The way out is to take out those materials that are listed on the 41 items. It is not the right thing to do to deny any manufacturing industry the material it needs to produce,” he pointed out.

    Ajayi-Kadir argued that the inclusion of essential raw materials in the restriction basket does not make sense; that it was an error that was made and must be corrected. “The raw materials that are needed to produce must be brought in especially because they are not locally available.

    “To deny us access to those raw materials was ill advised and it should be changed. We are engaging government, the CBN and the Presidency. We have been having positive reactions, but something just needs to be done,” he insisted.

    The MAN boss further said there is the need for government to provide a conducive and friendly operating environment for manufacturers. Ne noted that a conducive environment is a prerequisite for a successful manufacturing company.

    Bello said the NSC would continue to promote the ease of doing business and a reduction in the cost of doing business in Nigeria.

    His words: “The essence of privatisation is to bring down the cost of doing business comparative to what we have in other climes.

    “We can only do that through negotiations and we have been doing that to see that prices are reasonable and competitive together with the service providers. Everything we do, we need to get their buy-in because our regulation is democratic and we will achieve the same aim that we set out to achieve.”

  • LCCI faults IMF’s stand on monetary policy

    LCCI faults IMF’s stand on monetary policy

    The tight monetary policy recommended for Nigeria by the International Monetary Fund (IMF) is inconsistent with economic recovery process, the Lagos Chamber of Commerce and Industry (LCCI), has said.

    Speaking with reporters in Lagos,  LCCI Director-General Muda Yusuf said the Chamber does not share IMF’s view that monetary policy needs to be further tightened at this time.

    Tightening the monetary policy was part of the report of the IMF Article IV Consultation on the Nigerian economy. The IMF Article IV Consultations is an independent assessment of the Nigerian economy and the current economic management framework.

    But Yusuf argued that it is inappropriate to call for further tightening of monetary policy in an economy that is grappling with recession, high unemployment, high operating costs, high interest rates, and faltering real sector.

    “Already, interest rate ranges between 25 and 30 per cent and this is adversely affecting businesses and stifling economic growth,” he said.

    The IMF recommendation on review of existing Value Added Tax (VAT) and excise duty also did not go down well with LCCI.

    “Such a move would not be consistent with the economic recovery process. It will also not be consistent with the Federal Government’s vision to build an inclusive economy, spur growth, support the real economy and create jobs,” Yusuf argued.

    The LCCI DG, however, agreed with the IMF’s concern over Nigeria’s fiscal deficit increase from 3.5 per cent of Gross Domestic Product (GDP) in 2015 to 4.7 per cent of GDP in 2016.

    He said that the increase in the nation’s fiscal deficit occurred in spite of the under performance of the capital expenditure during the period.

    He attributed this to the high cost of governance and revenue shortfalls over the period. “It clearly raises concern over the fiscal sustainability in the management of the economy. It underlines the need to keep an eye on the size of recurrent expenditure and other measures to promote fiscal consolidation,” Yusuf said.

    He also said LCCI shares IMF’s concern about the increasing cost of debt service in the economy. “In the 2017 budget, debt service allocation is N1.66 trillion and this is 35 per cent of projected revenue and over 70 per cent of the projected capital spending. This disproportionate resource commitment should be a cause for concern,, he said.

    The LCCI, according to Yusuf, also aligns with the IMF on the need to ease foreign exchange restrictions to boost foreign exchange inflows from autonomous sources and strengthen investors’ confidence.

    He lauded the Central Bank of Nigeria’s intervention in the foreign exchange market, but said that a sustainable framework for the market was inevitable for economic growth.