LCCI Urges FG to Provide Incentives for Production of Exportable Goods

Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government to provide incentives for the production of exportable goods in Nigeria.

This call was made by the Director General of LCCI, Dr. Chinyere Almona, in a public statement titled, “LCCI Statement on July 2024 Inflation Rate,” in which she said that current inflation environment should also be used as an opportunity to look beyond and consider longer-term issues, particularly in the economy’s agriculture, manufacturing and export sectors.

Almona said: “We urge the government to support the economy’s productive sector and incentivize the production of exportable goods where the country has a comparative advantage to increase FX earnings and sustain stability in the FX market.”

She added that policymakers should to choose the appropriate policy mix to continually drive down the deceleration of inflationary pressures that declined from 27.49 per cent in June to 27.47 per cent in July.

According to her, the many programmes and policies initiated to tame inflation and stabilise the exchange rate must be sustained and extended to impact more economic players, thereby multiplying the economic effect in the medium term.

“We advise the government to sustain and expand programmes and policies like the import duty waivers on food and drugs, the introduction of Compressed Natural Gas (CNG) vehicles to give way to cheaper means of transportation, the several foreign exchange market reforms to boost supply, the decision to make provision for direct crude supply to local refineries, and the transition to renewable energy.

“To extend the recorded ease in prices, we must attend to the root causes of food insecurity in Nigeria, such as empowering lowly skilled farmers with access to required information on crop production, market prices, and technology; providing more agricultural input like fertilizer and extension services; invest more in agrarian mechanisation; resolve land use conflicts; mitigate climate change impact on farmlands; and initiate modern irrigation methods,” she said.

Almona noted that the Central Bank of Nigeria (CBN) report that the Purchasing Managers Index (PMI) for July fell to 49.7 per cent, which is below the optimism level of 50 per cent, was not-too-good news.

She, therefore, suggested that, “consistent work is needed to create some certainty in the policy environment to boost the confidence of industries in the economy in the coming months.

“The reinforced fight against crude oil theft and pipeline vandalism must be sustained to ensure a higher output that can cater to the crude supply requirements of local refineries.

“Beyond food crops, poultry and fisheries are key drivers of food inflation as common food items like beef, fish, eggs, and chicken have recorded consistently high prices in recent months, contributing significantly to food inflation in the country.

“The newly created Ministry of Livestock Development is expected to play a critical role in addressing this shortage of poultry and fisheries at a time like this.”

The LCCI also noted that the perception about Nigeria has continued to take a hit while investors’ confidence is being beaten down due to threats and fears of insecurity.

It, therefore, stated, “the fight against all the elements of insecurity must be sustained to improve on the recent wins by our armed forces.”