The Lagos Chamber of Commerce and
Industry says it is not comfortable with the present approach of the
Federal Government to economic issues, which has continued to diminish
investors’ confidence.
It, therefore, demanded an immediate
release of the economic blueprint of the President Muhammadu Buhari
administration, just as the council urged the government to constitute
an economic team to facilitate the new policy direction.
These were the highpoints of the LCCI’s
resolutions at its meeting held in Lagos on Wednesday, according to a
communique signed by its Director-General, Mr. Muda Yusuf.
The meeting, which was presided over by
its Chairman, Mr. Remi Aluko, deliberated on the state of the economy,
the business and the economic conditions, and the fiscal outlook of the
country.
It noted that there was no clarity yet in
the policy direction of the government in relations to the economy,
which it described as a major factor in investors’ confidence.
“The
uncertainty that began in January this year seems to have lingered.
Council urged the Buhari administration to make a clear pronouncement
with respect to its fiscal policy, foreign exchange policy, tax policy,
subsidy policy, trade policy, reform of oil and gas sector (upstream and
downstream), the power sector, the 2015 budget, the auto policy,
sectoral policies, etc. All these are necessary for investors to have a
clear insight into the policy direction of the government and take
strategic investment decisions,” it stated.
Although the LCCI acknowledged the
efforts of the Central Bank of Nigeria to protect the foreign reserves
and stabilise the exchange rate, it disagreed with the bank’s
strategies.
It said, “The current model of foreign
exchange management by the CBN has profound negative consequences for
investors’ confidence and the stability of the foreign exchange market.
“Council, therefore, calls for a more
strategic framework for the management of the foreign exchange market.
Council urged the President of the Federal Republic of Nigeria to
quickly set up an economic team that will interface with the CBN, the
organised private sector and the key economic ministries to come up with
a sustainable model for the management of the foreign exchange market.”
The LCCI, which expressed concern over
the weak capacity of state and local governments to meet their financial
obligations, however, commended the recent intervention of the Federal
government in mitigating the conditions.
“The current situation underscores the
imperative of economic diversification and prudent management of state
resources,” it stated.
It also commented on the new
administration’s efforts at blocking all fiscal leakages and recovering
looted funds, saying these were commendable and urged that appropriate
structures and institutions “should be put in place at all levels of
government to sustain the integrity and transparency of public sector
transactions.”
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