LCCI flays inconsistencies in FG’s $1 trillion economy vision, MTEF

Director-General, the Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, has noted inconsistencies between the federal government’s vision of achieving a $1 trillion economy in the next six years and the 2024 – 2026 Medium-Term Expenditure Framework (MTEF).

The Director-General added that the macroeconomic projections in the MTEF state that the economy will grow by 3.76 per cent, 4.22 per cent and 4.78 per cent in 2024, 2025 and 2026, respectively whereas the projected growths are sub-optimal to achieving a $1 trillion gross domestic product (GDP) by 2029, which implies an average growth of 21 per cent over the next six years.

Expressing deep concern over the worsening state of the economy, particularly the volatile foreign exchange, high inflation and general uncertainty, she said the challenges and many more have been inimical to businesses and overall productivity.

“Over the years, the Chamber has consistently expressed concerns about the implications of skyrocketing inflation, high-interest rates and unstable exchange rates on businesses and households. We are aware of the enormous challenges and the uphill task before the Central Bank of Nigeria (CBN) in ensuring macroeconomic stability and restoring investors’ confidence,” she said.

Appreciating the intellectual humility of the CBN Governor in admitting the errors of the past, particularly in the areas of corporate governance failures, diminished institutional autonomy of the CBN, deviation from the core mandate of the Bank, and unorthodox use of monetary tools and foray into fiscal activities under the cover of development finance activities amongst other things, Almona challenged the current CBN team to ensure professionalism and integrity and rebuild the trust of the general public.

She further commended the CBN Governor on his successful outing at the CIBN’s Annual Bankers’ Dinner and the grand finale of the institute’s 60th anniversary.

“On recapitalisation of banks, we commend the plan of the CBN to review the minimum capital base of banks due to consistent devaluation of the Naira, which has eroded the capital base of banks, attracted significant investment into banks as well as increased the capacity of banks to provide the required support for the economy. However, we caution the CBN to strengthen its banking supervision to avoid ‘Too big to fail’ banks.”

She went on to add that given the sensitivity of monetary policy and price stability, she urged the CBN to ensure transparency and synergy between monetary and fiscal authorities and effectively communicate significant changes in policy direction. Recommending that the CBN adopt the right policy mix to control high inflation effectively and ensure the stability of the exchange rate to support growth and job creation, she also urged the apex bank to be committed to promoting integrity, good corporate governance and the highest ethical standards.