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NACCIMA worries over dwindling fortunes of real sector

By Femi Adekoya
29 July 2016   |   2:26 am
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed worry over the negative and dwindling profile of the economy as well as its lingering effect on private sector operators.
Dr Bassey Edem, NACCIMA, National President.

Dr Bassey Edem, NACCIMA, National President.

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed worry over the negative and dwindling profile of the economy as well as its lingering effect on private sector operators.

According to the chamber, the real sector is reeling under the burden of rising costs of production in a state of near economic stagnation while facing the prospects of being the base by which the government hopes to obtain tax revenue to finance the economy.

The chamber noted that the outlook of the economy has been bleak in the last six months, as the rate of inflation has almost doubled, electricity generation reduced by almost 50 per cent, and the price of petroleum products has also doubled.

NACCIMA’s National President, Bassey Edem, while addressing journalists on the state of the economy in Lagos, yesterday, noted that while the effort of the Federal government in addressing the challenges can be acknowledged, the efforts have not translated into measurable positive indicators, rather it has led into recession which has become a thing of worry to private sector operators.

He noted that business operators and Nigerians are patiently looking forward to the “Change” that will bring about the economic turnaround of the country.

“As acknowledged by government officials, the economy is technically in recession. A situation characterized by negative economic growth in two successive quarters. This situation has been attributed to economic stagnation and increasing inflation.

“It is of utmost importance that the economic team of the federal government reviews the monetary and fiscal policies and come up with programmes and activities that would take the country out of the current economic doldrums.

“With respect to the decision of the Monetary Policy Committee of the Central Bank of Nigeria to raise the Monetary Policy Rate from 12 per cent to 14 per cent, we acknowledge and understand the decision of the committee as crucial to tackling the rising inflation rate.

“We also acknowledge the assertion by the committee that most of the factors contributing to the rise in inflation rate which include the high cost of electricity, transportation, low industrial activities, and high prices of both domestic and imported food products; are outside the direct purview of monetary policy.

“As we lend our voice to the calls by the committee for the urgent diversification of the economy away from oil to manufacturing, agriculture and services, we would like to point out that a call for stakeholders to increase investment in these select sectors of the economy should be followed by lower interest rates in these sectors, as the current rates are too high to stimulate the much-needed growth to lift the economy out of its current phase”, he added.

With unemployment rate rising, he urged the federal government to put in place systems and structures to allow for ease-of-access to its social programmes and the intervention funds they provide, to those who really need them.

“As a leading member of the Organized Private Sector and from the feelers from our members, we will like to state that the current economic situation is harsh. Rising inflation has greatly reduced the real income and the purchasing power of the average Nigerian. We note that the private sector, and by proxy, the majority of the populace which still exhibits confidence in the present administration are waiting anxiously to see the “Change” and dividends of democracy promised”, he urged.

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