Lagos Chamber of Commerce and Industry
(LCCI) has assessed the economic policies of President Muhammadu
Buhari’s administration in the last one year, saying the inherent
challenges therein prevented Nigerians from benefitting from them.
LCCI in its scorecard of the administration said the absence of a well-structured, broad-based and synergised economic blueprint with clearly stated goals, plans, policies and strategies to drive the economy is largely responsible for the challenges and policy ambiguity the nation is undergoing.
LCCI in its scorecard of the administration said the absence of a well-structured, broad-based and synergised economic blueprint with clearly stated goals, plans, policies and strategies to drive the economy is largely responsible for the challenges and policy ambiguity the nation is undergoing.
“Economic policy space remains unclear.
Policy conception is faulty, hence, policy coordination and
implementation suffer serious setback. There is, therefore, urgent need
for central policy strategy with detailed and well-designed policy
direction. This is critical to effective and efficient coordination and
implementation of policy,” the chamber said.
It noted that inflation record is worsening with attendant negative trends in the general macroeconomic outlook such as Gross Domestic Product (GDP), interest rate, fiscal deficit (debt profile) and FDI and their consequences on business and the economy as a whole.
The report said the abysmal situation of energy infrastructure (electricity, PMS and natural gas) was of great concern in the last one year, adding that the current state of electricity generation, transmission and distribution calls for serious attention.
‘’The damning situation of electricity supply is traceable to epileptic performance of most key power plants in the country and the security challenge in the Niger Delta region,” LCCI said.
On the way out of the economic challenges in the last 12 months, the report commended the recent withdrawal of oil subsidy as well as advocated full deregulation of the downstream petroleum sector.
This, it said, will reduce distortions in the downstream oil sector, eliminate corruption that has marred the industry over the years, increase public revenue while empowering the government to fund infrastructure and other social interventions.
The chamber also welcomed the decision of the Central Bank of Nigeria (CBN) to adopt a flexible exchange rate regime which is desirable in the light of prevailing economic realities, but said there is a need for clarity on what the apex bank describes as a special window for critical transactions which preferential rates will apply.
The report said the 2016 budget assent and implementation should give rise to positive macro environment, but added that inflationary impact remains a concern as the presidency will become more practical in its quest to deliver on some critical electoral promises.THE SUN
It noted that inflation record is worsening with attendant negative trends in the general macroeconomic outlook such as Gross Domestic Product (GDP), interest rate, fiscal deficit (debt profile) and FDI and their consequences on business and the economy as a whole.
The report said the abysmal situation of energy infrastructure (electricity, PMS and natural gas) was of great concern in the last one year, adding that the current state of electricity generation, transmission and distribution calls for serious attention.
‘’The damning situation of electricity supply is traceable to epileptic performance of most key power plants in the country and the security challenge in the Niger Delta region,” LCCI said.
On the way out of the economic challenges in the last 12 months, the report commended the recent withdrawal of oil subsidy as well as advocated full deregulation of the downstream petroleum sector.
This, it said, will reduce distortions in the downstream oil sector, eliminate corruption that has marred the industry over the years, increase public revenue while empowering the government to fund infrastructure and other social interventions.
The chamber also welcomed the decision of the Central Bank of Nigeria (CBN) to adopt a flexible exchange rate regime which is desirable in the light of prevailing economic realities, but said there is a need for clarity on what the apex bank describes as a special window for critical transactions which preferential rates will apply.
The report said the 2016 budget assent and implementation should give rise to positive macro environment, but added that inflationary impact remains a concern as the presidency will become more practical in its quest to deliver on some critical electoral promises.THE SUN
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