The Lagos Chamber of Commerce and Industry has said that Nigeria is yet to fully harness the benefits that should accompany a major oil-producing nation, while highlighting the importance of non-oil sector including agriculture, solid minerals, and gas.
The chamber lamented the sluggish growth in agriculture, manufacturing, and trade sectors, hampered by insecurity, exchange rate volatility, and high interest rates, despite the non-oil sector’s 2.80 per cent growth which accounted for 94.30 per cent of the total GDP.
In a statement on Monday, the LCCI president, Gabriel Idahosa, reflected on Nigeria’s challenge with being heavily oil-reliant and called for revenue diversification, infrastructure development, fiscal discipline and debt management, human capital development and security as the sustainable path.
He called on the Federal Government to implement bold measures to stabilise the economy and ensure sustainable growth as it celebrates its 64th Independence Day anniversary.
The president however commended Nigeria’s economic performance, especially the Gross Domestic Product growing by 3.19 per cent in the second quarter of 2024 and the oil sector’s 10.15 per cent growth in the same period, but decried insecurity and oil theft.
Idahosa further highlighted Nigeria’s weak infrastructure, policy inconsistencies, and high inflation as investors’ major concerns and the impact of insecurity on agricultural production which drives up food prices.
In his advice: words: “The growth of 1.41 per cent recorded for agriculture, 1.28 per cent for manufacturing, and 0.70 per cent for trade are comparatively low compared to other sectors that grew above four per cent. This also indicates the threats facing these sectors that power Nigeria’s real sector.
“The woes in these two sectors are responsible for the frightening rise in our inflation rate. Real sector activities may be constrained in the coming months with the excruciating burden of worsening insecurity, exchange rate volatility, high interest rates, and rising debt service.”
Idahosa stressed the need for government intervention to address insecurity, stabilise the power sector, and promote renewable energy adoption.
He also urged the Federal Government to tackle policy inconsistencies in taxes, import restrictions, and foreign exchange market operations.