LCCI seeks inclusion of more businesses in government’s palliative plan
The Lagos Chamber of Commerce and Industry (LCCI) has called on the Nigerian President, Bola Ahmed Tinubu to consider increasing the number of businesses billed to get government support as part of palliative measures to ease the impact of subsidy removal and provide jobs for Nigerians.
In a statement reacting to the President’s state of the nation address on Monday, the LCCI urged the President to consider more beneficiaries as 75 enterprises would not significantly impact the economy.
The President had stated in his speech that the government was making plans to invest in business enterprises by investing in 75 companies in order to boost their capacity and create more jobs.
“These plans demonstrate that the President is listening to Nigerians. 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,” part of the statement read.
Adequate Monitoring
The statement further urged the government to ensure the process of issuing loans to such businesses was monitored.
“We wish to call attention to the cost of funds. The plan is to offer loans to 75 scalable enterprises with enormous prospects at 9% 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 9% from other banking fees and charges. It may be judicious to stipulate that the total costs of funds is benchmarked to 9% regardless of the charges and fees.
The LCCI further commended 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 industrialisation and expand the GDP.”
LCCI also 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.
“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 500 billion naira ($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.”
Infrastructure Support Fund
However, the LCCI expressed concerns over the role of the State and Local governments as well as transparency in the implementation of the palliative strategies as the government plans to introduce an Infrastructure Support Fund for the states to invest in critical areas and revamp healthcare and education infrastructure.
“We urge the government to ensure smooth and promising implementation of the measures and regularly engage the citizens and the organized private sector to ensure accountability. There should be proper monitoring and evaluation of the implementation process to ensure benefits to the people,” the Chamber suggested.
Public Transportation
Furthermore, the Lagos Chamber of Commerce commended the government’s plan to provide affordable transport systems via provision of Compressed Natural Gas- enabled buses for public mass transportation, noting, “it is a means to provide affordable transportation across Nigeria. This will help ease the problem of moving persons and goods across the nation. It will also reduce the cost of doing business which burdens most small enterprises.”
