Though Nigeria is never part of the countries, likely to be in recession in Year 2023, as predicted by the International Monetary Fund (IMF), the Lagos Chamber of Commerce and Industry (LCCI) has, however, said that her citizens might still feel some pangs of recession, if urgent steps are not taken to address the myriad of challenges facing her economy..

 

 

The president of the Chamber, Asiwaju  Michael Olawale-Cole,  made this declaration in Lagos,  on Tuesday, while briefing the media on the  State of The Nation’s Economy.

 

He added that ,  while Nigeria actually got a clean bill of health from the IMF, regarding economies that might face recession in the new year,   the economy would still ‘feel’ like a recession for many Nigerians, considering the latest multi-dimensional poverty index.

 

The LCCI boos noted that though the nation’s economy recorded eight consecutive quarters of positive growth, in the third quarter of Y2022,  such growth had not reflected in  the manufacturing sector, which  had continued to contract due to high inflationary rates and  rise in interest rates.

 

Cole argued that  the excruciating burden of inflation, forex scarcity, high energy cost, and weakening purchasing power,  among other factors  might hamper  production activities in the coming months, with their attendant effects on the economy.

 

He therefore harped  on the need for the federal government to sustain its targeted interventions in selected critical sectors like agriculture, manufacturing, export infrastructure, and tackling insecurity.

While commending the federal government on its efforts at tackling oil theft, the two-time commissioner urged the government to intensify the fight, noting that if such efforts had been in place earlier, the country would have made huge economic gains.

 

“The government should also deploy innovative thinking to tackle natural disasters like flooding by implementing environmental guidelines and establishing preventive infrastructure. The impact of climate change on agriculture is becoming more evident by the day, and quick response is critical to avert food insecurity and worsening food inflation,” he stated.

 

On the time frame for the withdrawal of the old naira notes, the LCCI boss urged the government to be more serious with its policies, adding that there should be conscious efforts by the government at making that work.

 

“It is a policy introduced by the government, and I think government should be more committed to making it work. I share the concerns of many Nigerians who believe the new naira notes should have been in circulation by now. I was also at the bank today, but could not get the new notes,” he stated.

 

While throwing his weight behind the Central Bank of Nigeria’s (CBN) monetary tightening policies, aimed at taming inflation, the LCCI however advised the apex bank to ensure  that its targeted concessionary credit to the private sector is sustained for  the nation’s medium and small scale businesses.

 

He also called on the federal government to focus on the funding and promotion of non-oil sector of the economy, since it constitutes a major revenue earner for the economy.

 

“ With 22 percent of projected revenues expected from oil-related sources and 78 percent from non-oil sources, we need to keep track of the funding and promotion of the non-oil sector for more output in 2023,” Cole added.