The Lagos Chamber of Commerce and Industry says the economic recovery of the country requires the fiscal and monetary policymakers to be well-coordinated in promoting growth-enhancing and confidence-building policies.
It believed that these would encourage private and foreign capital inflows into the economy.
The President of LCCI, Mrs Toki Mabogunje said this in her address on the ‘state of the economy’ delivered in Lagos on Tuesday.
While the LCCI noted that though the Central Bank of Nigeria has adopted the National Autonomous Foreign Exchange Rate as the official rate in the gradual transition to a unified exchange rate system, “the currency market is still beset with persisting liquidity challenge evidenced by wide premium between the NAFEX and parallel market rates.”
To fast-track the recovery of the economy, Mabogunje said there was a need for the CBN to scale up its intervention efforts and roll-out more friendly supply-side policies to boost liquidity in the market.
She added that this would help bolster investor confidence and attract foreign investment inflows into the economy.
The LCCI President further explained that deliberate efforts towards making the business environment more conducive for Micro, Small and Medium Enterprises and large corporates at national, subnational and local government level was imperative.
She stated that this could be achieved by addressing the structural bottlenecks and regulatory constraints contributing to high cost of doing business.
She added, “A supportive and conducive investment environment is critical in facilitating private sector involvement in economic recovery process.”
The LCCI expressed concerns over the lingering COVID-19 pandemic, especially in developing economies, as many of them were still having difficulty in accessing COVID-19 vaccines.
Mabogunje said data by the World Health Organisation showed that less than three per cent of Africa’s population had been vaccinated as of end-May 2021, adding that “this poses high vulnerability risks to the continent.”
She,however, commended the passage of the Petroleum Industry Bill by the 9th Assembly, describing it as a welcome development.
She said, “We commend the coordinated efforts of the House and Senate, specifically the Committees involved in the process.
“We hope that the concerns raised by investors in the petroleum sector have been taken into account before the passage of the bill.”