By Charles Nwaaoguji
The Organised Private Sector (OPS) has again identified double digit interest rate as posing a challenge to economic growth and development.
According to the Director General of Lagos Chamber of Commerce and Industry, Mr. Yusuf Muda, “no nation has recorded significant economic development with unrestrained high interest rates.”
In a chat with Daily Sun, Muda said: “With the prevailing double-digit interest rates, the Nigerian economy will continue to suffer decline. Therefore we recommend, as the association has done in the past and always, a single-digit interest rate”.
He also challenged government on the need to treat the epileptic power supply and the entire energy crises as top priority because without adequate and stable power, economic and social development will be a mirage.
He also noted that the issue of foreign exchange for the importation of essential manufacturing inputs is equally important, but added that if government tenaciously drives the resource-based industrialisation programme, this can be overcome.
The LCCI boss reminded government of the anticipated negative impact of the EU-ECOWAS Economic Partnership Agreement (EPA).
According to him, the Chamber has made its position clear on the need to reject the above proposal and we laud the Federal Government for agreeing with our position. We appeal that the government should maintain its stand because of the anticipated destructive impact of the EPA on the Nigerian economy.
He further said that the chamber sees the proposed admission of Morocco into ECOWAS as equivalent to signing the EPA through the back door and therefore urged the Federal Government to vehemently oppose the move as it would spell doom to the productive sector of the economy.
The president appreciated the Federal Government’s efforts for the 60 per cent Preferential Forex Allocation to the manufacturing sector for importation of raw-materials and machinery that are not locally available.
He further noted that the Forex policy of 21st February 2017 significantly narrowed the premium between the parallel market and the official market rates and therefore made Forex more available, the $20,000.00 quarterly Forex Allocation to SMEs for importation of vital raw-materials and machinery.
He said the launch of the Economic Recovery and Growth Plan (ERGP), establishment of Presidential Enabling Business Environment Council (PEBEC), the Micro, Small and Medium Enterprises (MSME) Clinic, Adoption of the Nigeria Industrial Revolution Plan (NIRP) and the Inauguration of the Nigeria Industrial Policy and Competitiveness Advisory Council, have made major positive impact on the economy.