The Lagos Chamber of Commerce and Industry (LCCI) has raised the alarm that uncertainty in the country’s business environment is not only posing risk for investors in the country but also costing the economy billions of Naira in losses.
The Director-General of the LCCI, Muda Yusuf, who made this observation in Lagos, recently said the economy is suffering from the harsh operating environment which is stalling the influx of foreign investments into the country.
Yusuf also lamented the nation’s security challenges in recent times have in no small measure affected its investment climate with key sectors of hugely affected, including the manufacturing sector.
He added that these conditions pose major risk to job creation and economic inclusion across sectors leading to loss of billions of dollars to economic headwinds.
According to him, weak infrastructure, policy environment and institutions have adversely effected efficiency, productivity and competitiveness of many enterprises in the economy.
Similarly, the country’s security challenges are not only worsening the investment risk, but also, its risk perception and image by the global investing community.
“The quality of the business environment remains a source of concern to investors, especially in the real sector. Weak infrastructure, policy environment and institutions had adverse effects on efficiency, productivity and competitiveness of many enterprises in the economy. These conditions pose a major risk to job creation in and economic inclusion across sectors.
“The security situation in the country deteriorated in the last decade. It impacted on investment risk and worsened the country’s perception and image by the global investing community. Access to markets in the troubled parts of the country has reduced for many enterprises with negative consequences for investors’ confidence.” He said