The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has urged the Federal Government to prioritise the revitalisation of the industrial sector to engender inclusive growth.
Ide John Udeagbala, National President, NACCIMA, made the call at the Chamber’s fourth quarter state of the economy news conference on Thursday in Lagos.
Udeagbala said the call was pertinent because statistics showed that 83 million people (about 40 per cent) lived below the poverty line with additional 53 million people (about 25 per cent) being vulnerable.
These indices, he said, called for great concern and urged governments across all levels to create and maintain an enabling environment that was investment friendly.
This, the NACCIMA president said, entailed enunciating and maintaining policies that removed bottlenecks to business investments.
“There’s the need to address the various factors that are capable of increasing cost of doing business in Nigeria.
“These are critical issues which if addressed urgently will help position the economy for foreign direct investment and encourage local investors to establish industries that will enhance job creation and improved Gross Domestic Product (GDP),” he said.
On inflation, Udeagbala acknowledging the decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria to raise the Monetary Policy Rate from 14 per cent to 15.5 per cent, said the move did not address the root causes of inflation.
According to him, rising costs due to factors such as naira depreciation, high energy and transportation costs could not simply be controlled by adjustment to the monetary policy rate.
“Factors such as multiple exchange rates, stringent policy bottlenecks in obtaining foreign exchange for investments and production of goods and services, the security challenges need to be urgently addressed if inflation must be nipped in the bud.
“Fiscal policies and public expenditure controls at various government levels during this electioneering period will add to keep inflationary rate in check.
“Furthermore, the implementation of the CBN’s interventions in the agriculture, manufacturing, energy, healthcare and export sectors will be more impactful on the economy.
“This will further ensure inclusive growth and development of Nigerian economy,” he said.
Udeagbala also charged government to ensure that the country’s borrowings were done on terms consistent with entrenching debt sustainability, with the borrowed funds productively invested in value adding sectors of the economy.
This, he explained, was necessary for the country to outgrow its debt problem, restore creditworthiness and achieve sustainable growth.
He also expressed concerns over the increasing level of unemployment and brain drain with the migration of trained skilled workers, particularly the youth overseas.
These human capital exports, he said, had raised many concerns about the deprivation of trained and qualified human capital for many of Nigeria’s struggling sectors including health, information technology, banking and others.
“More worrisome to this trend is the indication that the exodus does not appear to have an end in sight any time soon as there are no tangible signs that government is focusing on efforts to create employment opportunities that would reverse the trend.
“It is our hope that governments at all levels will appreciate the need to support the business sector, especially the Organized Private Sector, which NACCIMA represents to enable our members do more in creating jobs,” he said.
