Emmanuel Ochayi
The Lagos Chamber of Commerce and Industry (LCCI) has sounded a clarion call to the Federal Government, urging immediate attention to the nation’s mounting economic woes.
At a press conference in Lagos on Thursday, LCCI President Gabriel Idahosa emphasized the need for targeted measures to combat rising inflation, escalating debt, and foreign exchange instability.
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In his address, Idahosa asserted, “The inflationary pressure, particularly in food and non-alcoholic beverages, housing, water, electricity, and gas, demands a holistic approach.”
He suggested that augmenting the monetary policy rate alone is insufficient and called for intensified support to crucial sectors such as agriculture, road infrastructure, power, and energy.
Concerning Nigeria’s burgeoning debt, the chamber highlighted a projected increase to N95.2 trillion by the end of December 2023, surpassing the Debt Management Office’s figure of N87.91tn ($114.35bn) as of September 2023.
Idahosa warned of an unsustainable debt service-to-revenue ratio of 73.5%, urging the exploration of alternatives like equity issuance and asset sales.
Addressing the exchange rate turmoil, Idahosa shed light on the naira’s depreciation in Q4 2023, attributing it to substantial FX obligations, sub-optimal crude oil production, and dwindling capital importation. He recommended building market confidence in free FX pricing and implementing policies to boost FX supply.
In the face of these challenges, the LCCI emphasized the imperative role of private investments in improving power transmission, presenting a multifaceted approach to address Nigeria’s economic complexities.
