The Lagos Chamber of Commerce and Industry (LCCI) said the Federal Government should show greater commitment to the fixing of structural issues to reduce production and operating costs for investors, in a bid to help Nigeria come out of recession.
This was disclosed by LCCI Director-General, Dr. Muda Yusuf, after the recent NBS report on Nigeria’s GDP which indicated Nigeria has entered a recession.
Mr. Yusuf disclosed that Nigeria’s economy in 2020 was in one of its worst moments in history due to a poor economic environment and double-digit inflation.
“From an economic perspective, 2020 has been a very bad year, the worst in recent history. We are faced with the double jeopardy of a stumbling economy and spiraling inflation.
“The October inflation numbers of 14.23 per cent was the highest in 10 months, a condition which in economic parlance is characterized as stagflation. The effects of these developments are evident in businesses and in households.
“Regrettably, and as if these were not bad enough, the business community continues to grapple with unfavorable policy, institutional, and regulatory challenges impeding investment,” Yusuf said.
He added that to help rescue the economy, Nigeria must prioritize investment-led development, including the port system and also other structural issues that can help increase production capacity in Nigeria.
“The ports system, especially the key institutions in the international trade processes need to be more investment friendly.
“We should show greater commitment to the fixing of the structural issues to reduce production and operating costs for investors in the economy,” he said.
What you should know
Nairametrics reported that Nigeria’s Gross Domestic Product (GDP) in real terms declined by -3.62% (year-on-year) in Q3 2020, marking a full-blown recession and second consecutive contraction from -6.10% recorded in the previous quarter (Q2 2020).