FG, BUA Cement, Emzor and others raise 6.7 billion naira from capital market

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By Adedapo Adesanya

The Lagos Chamber of Commerce and Industry (LCCI) has forecast that the Nigerian economy, measured by gross domestic product (GDP), will end the current year with a growth rate of 2.5%, with a double-digit inflation to close the year. .

Outgoing chamber president Ms. Toki Mabogunje gave the screening at the organization’s Annual General Assembly (AGM) on Thursday in Lagos.

She advised the fiscal and monetary aspects of the economy to promote growth-enhancing and confidence-building policies that would encourage private capital flows to the economy to achieve growth.

Ms. Mabogunje added that the fiscal and monetary authorities must develop a medium-term recovery plan anchored on local productivity, ease of doing business, attracting private investment and developing physical and intangible infrastructure.

The president of the LCCI, however, anticipated that the country’s inflation rate would remain at its double-digit level in the short and medium term.

This, she said, is largely due to persistent food supply shocks, currency illiquidity, rising energy costs, the potential removal of fuel subsidies, insecurity and social unrest in the northern region.

“These structural factors will continue to increase the pressure on domestic consumer prices,” she said.

Ms Mabogunje, noting the growth of the non-oil economy of 5.4%, said worsening security concerns in parts of the country could lead to production contraction and supply chain disruption.

“The main engines of growth in the non-oil sector have been finance and insurance with 23.2%, transport and storage 20.6%, trade with 11.9%, telecommunications 10.9%.

“Others manufacture 4.3%, construction 4.1%, real estate 2.3% and agriculture 1.2% all year round.

“However, with the perception of security in the country worsening, foreign investors are not interested in bringing foreign direct investment into Nigeria,” she said.

On the decision of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) to keep the policy parameters, Ms Mabogunje said her credit offer may not yield the desired result.

She said that this desired outcome was that the structural challenges that stifle national productivity would not be resolved.

“While the CBN insisted on granting credits to the real economy as a means of supporting the economy.

“The fact remains that the supply of credit in recent times has proved ineffective in stimulating output growth and stabilizing consumer prices.

“This is due to the weak transmission effect of traditional monetary policy instruments on the economy at large.

“A broad combination of fiscal and monetary policies is imperative to achieve the twin goals of economic growth and price stability.

“In the future, factors such as oil prices, oil production, production growth, inflation, exchange stability, foreign capital inflows, credit to the private sector are expected to influence monetary policy. .

“These decisions are short or medium term decisions.

“On the fiscal front, we expect to see clear communications and actions on the proposed removal of fuel subsidies and how this will ease government revenues and boost investment in infrastructure,” he said. she explains.

Business post had reported earlier that Ms Mabogunje will be replaced by Mr Michael Olawale-Cole as the new Speaker of the Chamber after the expiration of the two-year term of the first.

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