Babatunde Paul Ruwase, president of the Lagos Chamber Of Commerce and Industry (LCCI), has urged the federal government to pay more attention to the ease of doing business and also apply policies that will attract investors to the economy.
He congratulated the president on his re-election and commended the incumbent administration for its efforts in facilitating an enabling environment to conduct businesses in the country.
Speaking to journalists at the agenda setting forum for the re-elected government in Lagos, Ruwase urged the government to implement policies that would accelerate economic growth to enable it surpass the growth rate of the population. He further advised that the business environment be modified to make it better and more attractive for foreign direct investments, and stressed the need to ease the businesses environment for local business owners.
On the ease of doing business initiatives, he said, “We are of the firm belief that the Presidential Enabling Business Environment Council (PEBEC) is one of the best performing initiatives of the present administration from the business point of view.
“We request that the PEBEC secretariat should be further strengthened and the scope of its activities broadened to cover all sectors of the economy and all agencies of the government that interface with the private sector.”
He stated that infrastructure problems, overregulation of government agencies, credit access for business owners and many other hitches have made the business environment challenging.
Speaking on the infrastructure problems, he mentioned that infrastructure deficit is causing problems for business owners, especially in the area of transportation.
“The need for a functional and modern rail network cannot be over emphasised,” eh said. “It will facilitate the movement of people and goods whilst reducing the cost of transportation, logistics and freight.”
He further said that the issue of poor road maintenance needs to be addressed in a sustainable manner.
He advised that the Nigerian Investment Promotion Commission (NIPC) be set up in Lagos, as Lagos is the commercial nerve centre of Nigeria. He added that branch of the NIPC would grant investors easy access to investment-related issues while reducing the constant shuttling between Lagos and Abuja.
Another challenge, he said, was the access and cost of credit for business owners, especially the micro, small and medium scale enterprises (MSMEs). “The SMEs which contribute about 90 percent of business activities in Nigeria do not have sufficient access to capital,” Ruwase said.
“We need to encourage commercial banks to increase lending to SMEs,” he stated.
“Credit guarantee scheme for MSMEs will promote lending and provide guarantee of loan repayments,” he added.
He further explained that another challenge facing the business environment is the Nigeria Customs Service, which has not fully adhered to the executive orders and policies on the ease of doing business in the country. He advised that the agency prioritise its trade facilitation role while also performing its duties as a security outfit.
He said for the country to attract more foreign direct investments, the visa policy should be liberalised and citizens of advanced economics be granted a 30-day visa free entry into Nigeria. He said that this scheme is practised in other emerging countries and has been beneficial to the economic development of the countries. Ruwase advised that Nigeria should follow suit as it would impact positively on the foreign direct investment, and the tourism and hospitality industry.
Gbemi Faminu
