Sir Michael Olawale-Cole, President, LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to expand its net beyond the 75 manufacturing enterprises it is currently considering as beneficiaries of its N1billion loan, earmarked for the sector, for more impact.

 

The Chamber in a statement signed by its President, Sir Michael Olawale-Cole, in its reaction to President Bola Tinubu’s July 31 speech, commended the efforts of the federal government  to kick-start sustainable economic growth and improve productivity, adding that,  if rigorously pursued,  the  much-desired economic growth, through the real sector of the economy, would be achieved.

 

“We wish to call attention to the cost of funds. The plan is to offer loans to 75 scalable enterprises with enormous prospects at 9% per annum, repayable over a maximum period of 60 months.

 

“The government would need to closely monitor the banking sector in the provision of these loan facilities so that the eventual cost of funds is not above 9% from other banking fees and charges. It may be judicious to stipulate that the total cost of funds is benchmarked to 9% regardless of the charges and fees,” it stated.

 

The Chamber also throws its weight behind plans by the government to improve public transportation, including providing buses to be fueled by compressed natural gas (CNG) for deployment in all the states,  noting that such will go a long way in easing  problems, usually associated with the movements of  persons and goods across the nation.

 

It, however, expressed concerns on the role of the State and Local governments, as well as transparency in the implementation of the palliative strategies, as the government plans to introduce Infrastructure Support Fund for the states to invest in critical areas and revamp healthcare and educational infrastructure.

 

The group, therefore, urged the government to ensure smooth and promising implementation of the measures and regularly engage the citizens and the organized private sector to ensure accountability.

 

 

It also advised the  federal government to give  security the utmost attention it deserves, adding that without effectively dealing  with the issue of insecurity, implementation of these strategies would be in jeopardy.

 

The Chamber urged President Tinubu to also deal with the issue of  oil theft, arguing that sidelining it might have critical implications for the rule of law and the nation’s  economic well-being.

 

“Also, the fuel subsidy regime is sometimes described as a scam due to the opacity and lack of integrity of the arrangement, and it has indeed become a burden on the economy and a source of enrichment for a select group of individuals. Therefore, the Chamber calls on the government to make the required effort to identify and investigate the select group of individuals that plundered our national wealth and enriched themselves through the fuel subsidy regime, and bring them to book,” the Chamber stated.