LCCI Seeks More Enterprises To Strengthen Manufacturing Sector

The Lagos Chamber of Commerce and Industry (LCCI) has charged the federal government to consider more enterprises in its move to invest in the manufacturing sector.

On his second State of the nation address, President Bola Tinubu said: “to strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024.

“Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1 billion credit at nine per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”

The president of LCCI, Michael Olawale-Cole stated these plans demonstrate that the President is listening to Nigerian, saying that the Chamber supports the move to invest in the manufacturing sector.

“However, it would be pertinent to consider more enterprises as 75 enterprises would not significantly impact the economy. However, we commend the effort to kick-start sustainable economic growth and improve productivity. We believe that if this plan is rigorously pursued, economic growth through the real sector of the economy would be achieved and could revive Nigeria’s sluggish industrialization and expand the GDP,” he stated.

The Chamber commended the President on the palliative plan to support businesses, the working class, and the most vulnerable, as well as a policy intervention to check rising inflation and ensure exchange rate stability.

He noted that “the President covered most of the strategic sectors of the economy, but nothing was said about security, which is a critical factor in national development.

“The President described the plan to spend the N500 billion ($652 million) package to boost the economy by easing transportation costs, boosting manufacturing, and enhancing food supply.

“ It will also provide conditional grants to at least a million small businesses. To ensure affordable food prices, it is good that strategic reserves of grains will be released to households, and support for agriculture, including farmland cultivation, will be a priority.”

Meanwhile Olawale-Cole called attention to the cost of funds, explaining that the plan is to offer loans to 75 scalable enterprises with enormous prospects at nine per cent per annum, repayable over a maximum period of 60 months.

“The government would need to closely monitor the banking sector in the provision of these loan facilities so that the eventual cost of funds is not above nine per cent from other banking fees and charges. It may be judicious to stipulate that the total costs of funds is benchmarked to nine per cent regardless of the charges and fees,” he added.

He urged the government to ensure smooth and promising implementation of the measures and regularly engage the citizens and the organized private sector to ensure accountability.

LCCI president also urged Nigerians to exercise some patience, as emphasized by the President, adding that “the degradation of our economy has occurred over several decades and it can not be reversed within a few short months.

“It would take a concerted effort by all and focus on the strategic alignment of our national goals for change to occur. In reality, it is inevitable that we suffer some pain for these reforms to be successfully implemented,” he advised