Emmanuel OchayiIn a bold move that reflects the pressing concerns of Nigeria’s business community, the Lagos Chamber of Commerce and Industry (LCCI) has called upon the federal government to raise the minimum wage.
The chamber, addressing the nation on its 63rd Independence anniversary, emphasized the need to ameliorate the impact of the stringent reforms initiated by the Bola Ahmed Tinubu administration.
Dr. Michael Olawale-Cole, President of LCCI, stated, “LCCI recognizes the impacts of the reforms on vulnerable workers and low-income earners. The chamber is of the view that there is an urgent need to review the wage structure of Nigerian workers. At $30 for 30 days, the minimum wage is extremely poor.”
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Furthermore, Olawale-Cole raised concerns over several pressing issues affecting the country’s economic stability. He cited high inflation rates, volatile exchange rates, low GDP growth, weak infrastructure, and insecurity as formidable challenges that require immediate attention from the federal government.
Olawale-Cole also voiced apprehension about the business environment’s impact on investors, particularly in the real sector.
He highlighted weak infrastructure, an uncertain policy environment, and institutional challenges as factors that hinder efficiency, productivity, and competitiveness, posing a substantial risk to job creation and economic inclusion, especially with the Africa Continental Free Trade Area (AfCFTA) agreement now in place.
“The way forward is to address the fundamental constraints to manufacturing competitiveness. In reality, job losses in the sector have increased over the decades as productivity declined on the back of the difficult operating environment. Our nation is at a crossroads and in dire need of big decisions to drive the drastic transformation the economy requires to return to meaningful economic prosperity,” he asserted.
LCCI also noted the Central Bank of Nigeria’s recent increase in the benchmark interest rate in response to inflationary pressures and global economic developments.
Additionally, LCCI identified poor power supply, insecurity, and weak infrastructure as major challenges hampering businesses in Nigeria. The chamber proposed a shift towards renewable energy and decentralizing the national power grid as viable solutions to the persistent power supply issues.
Regarding security concerns, LCCI expressed deep apprehension, stressing that the deteriorating security situation has deterred investments in the nation’s economy.
However, the chamber emphasized that Nigeria’s infrastructure deficit, including roads, rail, ICT, and ports, remains a significant hurdle to the country’s socio-economic development. They called for sustained expenditure of approximately $14.2 billion per year over the next decade, equivalent to about 12% of GDP, to address these challenges comprehensively.
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