THE NIGERIAN ECONOMY AT 62: FG NEEDS TO SUSTAIN TARGETED INTERVENTIONS IN SELECTED CRITICAL SECTORS – LCCI DG
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Stakeholders in the manufacturing sector have demanded a focused campaigns and financing adding that this must be sustained to enhance non-oil exports in order to achieve economic growth as the Federal Government commemorate the nation’s 62nd anniversary of independence.
The call is definitely necessary given that, 62 years after gaining independence, the country’s economy is reportedly a mixed bag of lows and highs.
With a Gross Domestic Product (GDP) of more than 510 billion dollars, Nigeria, which is 62, continues to have the largest economy on the continent.
According to the LCCI boss, Chinyere Almona, in a statement said that the Nigerian economy has performed along the line of what policy mix used to drive the economy in the last 62nd year.
“Our economy has significantly transformed from a largely independent agrarian economy to a net importer of finished goods. The economy is now financed mainly by oil revenue, which has exposed the economy to the effects of external shocks. The Chamber is delighted to join all Nigerians to manifest the 1 October spirit as we celebrate our nation’s 62nd anniversary.”
She added that the growth of 1.2 per cent recorded for agriculture and the 3 per cent for manufacturing were comparatively low when compared with other sectors that grew at above 5 per cent adding that the quality of the business environment remained a concern to investors, especially in the manufacturing sector.
Almona, further stated that weak infrastructure, uncertain policy environment, and institutions have continued to adversely affect the efficiency, productivity, and competitiveness of many enterprises in the economy is posing a major risk to job creation and economic inclusion across sector.
“The quality of the business environment has remained a concern to investors, especially in the manufacturing sector.”
According to her, weak infrastructure, uncertain policy environment, and institutions have continued to adversely affect the efficiency, productivity, and competitiveness of many enterprises in the economy posing a major risk to job creation and economic inclusion across sectors.
Almona however noted the need to address the weak government revenue base caused by oil theft and pipeline vandalism, rising and unsustainable debt profile, over-dependence on oil revenue, exposure to foreign shocks through inadequate forex supply and double-digit inflation.
“The growth of the telecommunications sector stands out as one of the most resilient sectors in the last year. Many sectors have leveraged telecom’s innovative possibilities to make significant progress through ICT, especially in the services sector. Today, we have tech-enabled platforms supporting healthcare delivery, agriculture, education, transport, etc. The Government should commit to supporting this sector’s growth and strive to create an enabling regulatory environment.”
“The financial services sector has been significantly transformed since independence through leveraging technology to enhance service delivery. The sophistication of the industry can compare with its counterparts even in advanced economies. However, the financial intermediation role of the banking system is still below expectation. It still has some weak linkages with many other sectors of the economy, which has constrained the sector’s impact on the economy from a systemic perspective.”
“The Federal Government needs to sustain its targeted interventions in selected critical sectors like agriculture, manufacturing, export infrastructure, tackling insecurity, and free up more money from subsidy payments. We urge the Government to tackle oil theft to earn more foreign exchange, borrow from cheaper sources to reduce the burden of debt servicing, and take a decisive step towards removing fuel subsidies.””
Not forgetting the power supply sector. According to the LCCI boss, “Poor power supply remains a major burden on businesses. It is one area in which the trend since independence has been that of progressive decline. Power supply has consistently lagged behind the pace of economic activities and population growth. This development impacted negatively on investment over the past few years with increased expenditure on diesel and petrol by enterprises. This also comes with the consequences of declining productivity and competitiveness. With the frequent collapses recorded by the national grid, we can no longer rely on a centralized power source. The way to go is renewable energy and decentralizing the national grid.”
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