The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has blamed the continuous depreciation of the naira on the low local production capacity of the country.

The chamber made this disclosure in a statement issued by its President, Mr. Odeiga Jideonwo, and made available to newsmen in Enugu on Monday.

According to Jideonwo, the chamber has been closely monitoring events surrounding Nigeria’s economy in recent times.

“The high level of importation of finished goods remains the major reason for the continuous decline of the Naira, especially when we continue to import products that can be sourced or produced locally.

“Our recent study of China reveals that the economic growth being experienced in China presently is a result of a strict policy by the government to support locally based or indigenous companies to produce for 100 percent local consumption as well as for export.

“With their local consumption demand being satisfied by goods produced locally, they have, to a large extent, settled the major economic issues of exchange rate.

“Interestingly, stepping up the manufacturing of various products for export helps China build its foreign reserves, which, as of September 2024, were $3.3 billion. This is more than twice the size of Japan’s reserves. This feat by China remains the result of the decisive policies of the government and the good people of China.

“The Dangote Petroleum Refinery is currently one of Nigeria’s gifts that need to be encouraged at this time when the economy of Nigeria is declining.

“Since oil is currently the major source of foreign earnings for Nigeria, players in the industry who have shown the capacity to move the country from being a net exporter of crude oil to also an exporter of refined petroleum products should be encouraged by the government and indeed all stakeholders.”

The ECCIMA president said that Dangote Petroleum Refinery remains a timely private sector initiative whose impact on the economy should not be underrated.

He said, “ECCIMA believes that the byproducts of this refinery, which has the capacity to refine 650,000 barrels per day and has increased production from 25 million litres to 30 million litres in October 2024, will be ancillary to other indigenous companies and will indeed foster economic growth.

“It is obvious that the growth of Dangote Petroleum Refinery is necessary, as it remains core to the needed diversification of our economy.

“Every other sector will definitely need the byproducts of this refinery. Nigeria’s foreign earnings will also grow if Dangote refined petroleum products are exposed and accepted in the international market.

“With this, ECCIMA calls on the government and all stakeholders to rally around and support the Dangote Petroleum Refinery as well as other local manufacturers and industries for the growth of the national economy.”