As Nigeria celebrates 21 years of uninterrupted democratic ruling, the Lagos Chamber of Commerce and Industry (LCCI) in its congratulatory message, reiterates the need for a thriving private sector driven economy that will strengthen the country’s democratic structures while delivering value to the economy.
In a statement signed by Muda Yusuf, director- general, LCCI, the chambers congratulated the government on exercising uninterrupted democracy while also commending the military for its loyalty. However, it stated that economic milestones and democratic values are yet to reflect in the Nigerian system.
Consequentially, the LCCI urges the government to prioritise economic growth and development by improving private sector involvement and also revamp the policy, regulatory and institutional frameworks for better business and democratic structures.
“A strong and virile economy is critical for a sustainable democracy. Worsening poverty poses a great deal of risk to the democratic process and the security of the nation,” according to the statement.
In a 4-year review (2015-2019), the chambers with proof of data highlights the shortfalls in the country’s economy showing significant declines in the GDP growth rate, Foreign Direct Investment (FDI), public debt, exchange rate, as well as the surge in the unemployment rate, poverty rate, among other economic indicators.
The chamber also notes that despite the high rate of business activities, the business environment is saddled with challenges hindering growth and expansion possibilities, which has affected commercial activities of the private sector as well as the inflow of FDI into the country fuelling unemployment and poverty. This, according to the National Bureau of Statistics (NBS), stood at 23 percent and 40 percent in 2018 and 2019, respectively.
Referring to the global competitiveness ranking, the chamber says the marginal improvement recorded for Nigeria emphasises the need for much greater efforts to improve the competitiveness of the business environment.
“We note the decline in FDI flows into the country driven by weak investors’ confidence resulting from heightened regulatory risks, state of infrastructure, policy risks, quality of dispute resolution systems, among others, the state of physical infrastructure remains a challenge to socioeconomic development of the nation and constitute significant cost pressures on businesses and corporates, further resulting in weak global competitiveness of domestic firms and declining profit margin by investors in the country,” the statement reads.
The chambers recommends that political leadership at all levels, strengthen the economy’s macroeconomic fundamentals, reduce the cost of doing business through the provision of critical economic infrastructures, and create of a level playing field for all economic players.
“A strong economy driven by the private sector is fundamental to the building of strong democratic structures and processes, sustained engagement with stakeholders and the adoption of evidence-based policy formulation process would bring considerable value to the economy.”
Source: Businessdayng
