Inflation, insecurity and major forex issues OPS wants FG to tackle FG – Business – The Guardian Nigeria News – Nigeria and World News
As the country commemorates a new year of independence, members of the organized private sector of the Nigerian economy have urged the federal government to address lingering macroeconomic issues to ensure that the private sector, especially manufacturers, contribute in a meaningful way. significant to the economy.
According to PAHO, the quality of the business environment remains a source of concern for investors, especially in the real estate sector.
They noted that weak infrastructure, political environment and institutions continue to have negative effects on the efficiency, productivity and competitiveness of many enterprises in the economy.
PAHO, comprising the Lagos Chamber of Commerce and Industry (LCCI), the Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Center for the Promotion of private companies (CPPE) in their respective messages to commemorate Nigeria’s 61st Independence Anniversary expressed these concerns and called for government intervention to address them.
LCCI Director General Dr Chinyere Almona said the risk of investing in the manufacturing sector of the country’s economy has gradually increased over the past decades largely due to poor infrastructure. .
She said: “Unless there is effective and sustainable protection and support for the sector, and a dramatic improvement in infrastructure, the outlook for the sector will remain bleak, especially for small industries. Most SMEs have yet to recover from the impact of the COVID-19 pandemic that hit last year.
“For most manufacturing SMEs, it’s a nightmare. Yet production is essential for sustainable economic and social stability. The way forward is to tackle the fundamental constraints to manufacturing competitiveness in the Nigerian economy. Perpetual protectionism without sustained local mass production cannot solve this problem. “
A Chief Economist of CPPE, Dr Muda Yusuf, acknowledged that some sectors of the Nigerian economy have undergone significant transformation over the past 61 years, but identified the need for urgent action to ensure a better management framework. macroeconomic. stabilize the exchange rate, eradicate the challenge of illiquidity in the foreign exchange market and stem the current depreciation of the Naira.
Yusuf noted that the country’s macroeconomic management framework continued to pose serious challenges to investors in the economy and recommended that “the international trade process should be reformed to prioritize trade facilitation. Therefore, the focus of the Nigerian Customs Service, Nigerian Port Authority, shipping companies, terminal operators and port security agencies must change in favor of investment-friendly international trade processes.
NACCIMA National President John Udeagbala said Nigeria’s celebration at 61 had sparked mixed feelings as the country still faces many economic and social challenges.
Udeagbala said the Nigerian economy today faces high inflation, high unemployment, low growth rates, growing local and foreign debt and a depreciating currency while remaining heavily dependent imports.
He attributed the current state of the economy to the government’s habit of initiating and implementing reform policies too late and thwarting their positive effects with different policies.
Udeagbala said an example of late political intervention was the time it took for the government to prepare and begin implementing its economic sustainability plan to counter the impacts of the COVID-19 lockdown measures on the Nigerian private sector.
He added: “An example of the second is the current implementation of foreign exchange market policies that completely nullify any benefit or relief that might have been obtained through the implementation of the PSE.