The LCCI gave this task in its reaction to the recent
increase in the Monetary Policy Rate (MPR) by the Monetary Policy Committee
(MPC) of the CBN in which it urged the CBN and the fiscal authorities to
intervene with policies and instruments that could boost growth in the economy
since rate hikes are known to weaken economic growth.
The Director General of LCCI, Dr. Chinyere Almona, said: “In
Nigeria, we need to tackle food inflation from the roots looking at issues like
targeted support to the agriculture sector, manufacturing and the provision of
more export infrastructure for businesses to export more and earn more foreign
exchange.
“We urge the CBN to look further inward at the peculiar
situations driving inflationary pressures within the Nigerian economy. Rate
hikes are known to weaken growth, and as such, it is expected that the monetary
and fiscal authorities intervene with policies and instruments that are
growth-boosting. We are also calling on the government to commence preventive
measures against the expectation of flooding in 2023.”
Almona expressed concern that further increase in the policy
rate would put additional pressure on businesses with the resultant effect of
rising operating costs, low productivity and job losses.
“This was our major concern regarding the implementation of
more taxes, as provided in the 2022 Finance Bill. We urge the government to
consider streamlining these issues such that they do not swamp businesses and
render them unproductive and uncompetitive.
“Beyond the rate hikes, policymakers need to consider more
actions to increase and stabilise oil production levels to earn more FOREX.
Better coordination of fiscal policies can complement the deployment of
monetary instruments by the CBN.”
The chamber also advised that businesses should also look
inwards to source their raw materials instead of waiting for the CBN to
allocate FOREX to them.
“We have consistently advocated for more friendly policy and
business environment that will attract foreign and domestic investment and
improve productivity, particularly domestic food production,” she said.
The LCCI also commended the commissioning of the Lekki Deep
Sea Port, the Lagos Rice Mill at Imota, the 18.75 killometres Eleko-Epe rigid
pavement six-lane expressway, the first phase of the Blue Light Rail from Mile
2 to Marina, and the John Randle Centre for Yoruba Culture by President
Muhammadu Buhari as significant factor in driving development in Lagos State.
It, however, stated that to maximise the benefits of these
infrastructures and facilities, “there must be a connecting rail network that
supports the movement of goods and persons to fully facilitate trade and
commerce within the state and across the West African borders.
“With this connection, Eko Rice can easily move into the
West African markets to explore the benefits of the African Continental Free
Trade Area (AfCFTA). With access to the African market, farmers in Lagos are
encouraged to commit more investments into rice production, create more jobs,
and provide more rice to beat the rising price of the product.”
LCCI also encouraged other state governments in the country
to provide the needed infrastructure to that could spur economic activities and
growth in their respective states. “We also call on the federal government to
be sensitive to the massive private investments in various states and be more
intentional in creating a stable policy environment. Policy summersault has
remained one of the most damaging factors to investors’ confidence,” the LCCI
said.