The Lagos Chamber of Commerce and Industry (LCCI) has called on the government to boost local production of imported staples to levels that meet local demand.
Speaking on the state of the economy at the LCCI quarterly press conference in Lagos, the president of the chamber, Dr. Michael Olawale-Cole said, the war between Russia and Ukraine has unexpectedly lingered since February till date fuelling deeper fears about worsening food scarcity, more people falling into poverty, and that supply chain disruptions may continue for the rest of the year.
He noted that, the war paints a gloomier outlook for the global economy and especially Nigeria, saying that the most sustainable solution is for the government to boost local production of hitherto imported staples to levels that meet local demand.
According to Olawale-Cole, in preparing for the reality of our near future, we urge the federal government to take seriously the completion of projects like the Trans-Saharan Gas Pipeline, a planned natural gas pipeline from Nigeria to Algeria.
“With this, we can explore the opportunity of exporting gas to Europe in the long term. We should also target Trans-Saharan and European markets with the ongoing construction of the Ajaokuta, Kaduna, and Kano Gas Pipeline, popularly known as the AKK Gas Pipeline. Arising from the calamities of this war, Nigeria can explore emerging opportunities to earn huge foreign exchange inflow in the medium to long-term.
“We reiterate our recommendation that refining our crude remains the most sustainable option especially when we consider the huge cost of subsidies on government finances. In refurbishing the refineries, the government should consider the joint venture model similar to the Nigeria Liquified Natural Gas (NLNG) model,” he pointed out.
LCCI president further noted that Nigeria’s Gross Domestic Product (GDP) grew by 3.11 per cent (year-on-year) in the first quarter of 2022, indicating the sixth consecutive quarter of positive growth on the back of significant expansionary monetary policies.
He explained that, sustaining the pace of recovery in 2022 and navigating through the growing uncertainties in the global economy requires well-coordinated fiscal and monetary policies in promoting growth-enhancing and confidence-building policies that would encourage private and foreign capital inflows into the economy.
He added that, “it is our collective responsibility to engage with the government in creating an enabling investment environment for the advancement of the Nigerian economy and the good of all investors and economic players.”
He stated that, “to achieve this, we need to have the right policy and regulatory framework. Our policies and regulations must foster business competitiveness at national, sub-regional, continental, and global levels. “This requires that the governments at all levels pay more attention to the economy at this critical time. The business community demands this commitment at a time when it is feared that governance may suffer on the altar of politicking as we approach the general elections in 2023.
“The mandate of this government covers the period to the handover in May 2023 and would therefore expect to see a determined government wishing to leave enduring legacies in the history of Nigeria.”
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