By Charles Nwaoguji

Organised Private Sector (OPS) has urged the Federal Government to urgently address the issue of high interest rates charged manufacturers by banks. The interest rate, according to experts, which hovers around  17.86 per cent for prime lending and 31.39 per cent for maximum lending, continue to be detrimental to manufacturing growth and agribusiness expansion.

The President of Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Iyalode Alaba Lawson, lamented that the double digit inflation rate that now stands at 15.90 per cent remains a source of worry, especially in the light of rising unemployment, currently put at 18.8 per cent. 

 Lawson, who spoke to the Daily Sun recently in Lagos, said that if the situation continues, the survival of the manufacturing sector would be difficult.

Commending the activities of the Presidential Enabling Business Environment Council (PEBEC) in improving the ease of doing business in Nigeria, Lawson said she expects consolidation of the gains already recorded through the formulation and implementation of sound economic policies and programmes.

“These, in addition to an improved business environment, have the potential to bring about a reduction in the rate and encourage youth empowerment, while boosting the growth of SMEs and the implementation of the key activities in the Economic and Recovery and Growth Plan (ERGP – 2017-2020),’’ she stated.

 Describing the agriculture sector as the largest employer of labour and a contributor to the nation’s GDP, Lawson reiterated that it requires more government intervention this year to meet local and export demand for foods and cash crops.

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She stated that the association is interested in this sector’s ability to liberate the nation’s economy from the current quagmire it faces culminated in the NACCIMA – NIRSAL.

She reiterates the call for a single digit interest rate for manufacturing and agriculture sector to promote commercial agriculture, agribusiness activities, as well as more incentives for local producers of agricultural machinery and equipment.

She added, “We are worried about the rising spate of insecurity as this discourages investment in the economy by both local and foreign investors. We hope for significant improvement in security through further strengthening of all our security agencies and efficient securing of our borders.”

She express the hope that the manufacturing and mining sectors of the economy would receive more attention from government through the implementation of policies, programmes, incentives and products that engender the growth of small and large business, encourage more local and international investors and promote inclusive growth and development in all sectors of the economy.

For the economy to improve significantly, Lawson said it needs an increased growth rate of GDP, buoyed by the continuing stability of global prices of crude oil, which are currently above the budgetary targets.

“We believe that GDP growth rate will average 3.5 per cent this year , in line with the prediction of the Medium Term Expenditure Framework (MTEF) 2018-2020. Inflation rate (Year on Year change) will continue to fall slowly, but will remain within double digits within the year , perhaps falling to as low as 12.5 percent,” she added.