Healthy fiscal policy could haul Nigeria out of recession in 2017–LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has said that the country could come out of recession in 2017 if favourable monetary and fiscal policies are put in place to drive growth. 

“The economy is in recession and we at LCCI believe that it will not last long. Things will be better for Nigeria before the end of 2017. I am very optimistic about it,” said Nike Akande, president, LCCI, at the chamber’s 128th annual general meeting held in Lagos recently.  

“It is our prayer that we get out of this stronger and wiser,” Akande said. 

Nigeria economy contracted for the third consecutive time in 2016 with inflation at 11 year high of 18.3 percent in October and unemployment rate of 13.3 percent in Q2, 2016. Income, purchasing power and trade have all contracted, while investors have fled the country in droves. 

Muda Yusuf, director general, LCCI, said that the country should put in place favourable monetary and fiscal policies that can inspire investors’ confidence to attract investment which are critical for the nation’s economic recovery.

 “What is most important at this time is for us to have a favourable policy; favourable fiscal, monetary, exchange rate and trade policies,” said Yusuf. 

Yusuf noted that the policies are critical for the nation’s economic recovery and to attract the much needed domestic and foreign investments. He urged the government to provide a good policy and institutional environment that will inspire investors’ confidence.

Also speaking to journalists at the event, Waheed Olagunju, acting managing director, Bank of Industry (BOI), who represented Okechukwu Enelemah, minister of industry, trade and investment,  said the country has been paying lip service to diversification of the economy. 

“In the last 30 years we have been paying lip service to diversification of the Nigerian economy. Now we need to start doing things right and in the next five years we can turn around our economy,” Olagunju said. 

“Nigeria economy is valued at about N90 trillion and the government budgeted between N6, N7 and N8 trillion. The best the government can do is to catalyse the private sector by mobilising resources for them to ensure that the sector is incorporated such that we can actualise our full potentials,” he added.

 Akinwunmi Ambode, executive governor of Lagos, who was represented by Rotimi Ogunleye, commissioner for commerce and industry, said that the 2017 Lagos budget passed recently is not only ambitious but achievable with the co-operation of the private sector. 

Ogunleye assured the chamber that the state would continue to support businesses through the creation and sustenance of a positive business environment.

Josephine Okojie