Economy still susceptible to external shocks, says NACCIMA

Though there are indications that the Nigerian economy is out of recession, continued dependence on imports will make it susceptible to external shocks, says the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

According to the Chamber, the economy is still exposed to external shocks that may be addressed through intensified implementation of the diversification agenda.

The National President of NACCIMA, Iyalode Alaba Lawson, while speaking on the second quarter GDP report said the growth recorded is attributable to improved monetary and fiscal policies, the relative stability of the foreign exchange market, renewed investor confidence, earnest efforts by the private sector as well as relative stability in global oil prices.

She said:  “The Quarter 2, GDP report released by the Nigeria Bureau of Statistics has indicated a positive GDP growth rate of 0.55%, signalling that the nation’s economy is technically out of recession, after five consecutive quarters of negative growth of the nation’s economy.

“NACCIMA however counsels that the economy is still exposed to external shocks, as it is still largely import-dependent.”

“We call on the government to continue intensified implementation of programmes and strategies geared towards economic recovery, ensuring ease of doing business, infrastructural development and diversification of the nation’s economy,” she added.

Alaba however noted that more support is required for Micro, Small, and Medium Enterprises (MSMEs), Agribusiness, as well as tighter control on imports as a way of stimulating local production, and empowering the real sector in line with the Federal Government’s Executive Order 003.

She added that the formulation and implementation of policies, which can encourage the banking sector lower interest rates crucial to growth in the Real sector is necessary.

“With these in place, the Association expects to see further economic growth in subsequent quarters,” she said.