The Lagos Chamber of Commerce and Business, LCCI has acknowledged that the Nigerian economic system is beneath extreme stress because of elevated inflationary strain, overseas alternate difficulties, debt servicing, and inadequate tax assortment.
In keeping with LCCI, the three.4 % Gross Home Product progress recorded within the second quarter of 2022 paled compared to 5.01 % progress posted within the corresponding quarter of 2021.
In a press release titled, “LCCI assertion on Nigeria’s financial progress efficiency,” signed by its Director-Basic, Dr Chinyere Almona, the chamber famous that even because the economic system recorded a formidable restoration from the recession induced by the COVID-19 pandemic in 2020, it’d drift into stagflation if these points weren’t addressed.
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The assertion reads: “Nonetheless, the economic system has continued to wrestle with many inhibiting burdens like inflation, weak income era, degenerated infrastructure, foreign exchange challenges, unsustainable value profile seen in debt companies and subsidy funds, and the daunting threats of worsening insecurity.
“The Chamber is worried that if we proceed on this trajectory, the economic system could bleed away right into a stagflation which can affect on manufacturing value, job losses, worsened foreign exchange disaster, and dampened progress within the medium time period.”
Almona suggested the federal government to dedicate extra consideration and sources to tackling the menace of oil theft and pipeline vandalism for the reason that oil sector made up about 80 % of the federal government income.
The LCCI boss mentioned the expansion of 1.2 % recorded for agriculture and the three % for manufacturing had been comparatively low as towards different sectors that grew at above 5 %.
The assertion added that the woes in these two sectors had been liable for the scary rise within the inflation charge.
“With the excruciating burden from debt service, subsidy funds and worsening insecurity, many extra manufacturing actions could be constrained within the coming months.”
The Lagos Chamber of Commerce known as on the Federal Authorities to maintain its focused interventions in chosen crucial sectors like agriculture, manufacturing, export infrastructure, tackling insecurity, and free more cash from subsidy funds.
