NACCIMA tasks FG to utilise private sector to drive economy

Dele Oye, the president of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has said to improve Africa’s most populous nation’s economy, the government must use the capacity of the private sector. He made this known at an interview on Arise News where he said the government should create an enabling environment for the private sector to thrive.

“It is better for the government and private sector to work together, Nigeria has one of the best private entrepreneurs and has the capacity to transform its economy,” Oye said.

He stated that if there is increased stakeholder engagement and consultation, then the economy will improve.

NACCIMA pointed out that the private sector was facing higher inflation, higher cost of borrowing for payment for existing loans, currency devaluation and higher costs in every arm of business operation.

“2024 economic performance was unsatisfactory for the private sector and all economic benefits of the recent economic reforms went to the government.”

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Oye stated that the government must listen to businesses because the business will generate the income that will be used to pay loans.

“Loans are not sustainable until the government starts cutting down costs in the public sector because without that it will be very difficult to grow the economy,” he stated.

He urged the government to listen more to the private sector. “The government must get the Central Bank of Nigeria, and the Ministry of Finance to key in and work with the private sector.

“Government does not produce any goods and services and awarding contracts is not an economic activity. What pays the bills is the effort of the private sector so the government must work with them.

“To increase private sector competitiveness, there is a need to reduce tax. We can’t tax ourselves out of this problem but to increase competitiveness,” he said.

He stated that the government must take the issue of the Naira seriously because it is the biggest driver of inflation and no one will invest in a nation where currency declines every day.

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“Deficit financing, coordinated transfer from the private sector to the public sector is allowing the private sector to shrink and the public sector to expand.

“Government needs to find a way to reduce its deficit financing and pay back the loans they owe, they should stop borrowing especially the local space and if the money is paid back and there should be a cap on local borrowing,” he stated.

He further said the economic reform bill is not the issue but there is inflation when the government outpaces its revenue then there is the tendency for the government to try to borrow or increase taxes to fill that gap and that is making Nigeria poorer.

“NACCIMA is not advocating for a reversal of the government reforms but they are asking that the way it is being implemented won’t lead private sectors anywhere,” Oye said.