NBCC groans over economic outlook, seeks sustainable policy

Nigerian-British Chamber of Commerce (NBCC) said unless the Federal Government adopted a more sustainable monetary policy and properly implements the Economic Recovery and Growth Plan (ERGP) to drive increased capital inflows and encourage domestic lending, desired economic growth may remain elusive.

NBCC also Called for a holistic tax reform that would among other outcomes, increase the country’s tax base by absorbing the informal sector into the economy. The Chamber tasked the Central Bank of Nigeria (CBN), to focus more on policy that would drive infrastructural development, enhance tax compliance and ensure a favourable environment for SMEs in the country.

Analysing the Chamber’s quarterly review of the Nigerian economy, President of NBCC, Dapo Adelegan, bemoaned the decline in economic activities in the country.

He also lamented the increase in the rate of unemployment and high operating cost, which he described as direct effects of the restriction earlier placed on foreign exchange.

On Foreign Direct Investment, the NBCC President said the foreign inflow has dropped from N53.20 billion in April 2015 to N14.52 billion a year after, adding that many investors had left the country due to foreign exchange restriction and economic downturn.

“The government must consider concessioning federal assets in order to attract private capital that will effectively exploit these valuable assets that are currently lying unutilised. Private investment will also reduce the burden on the government to utilise the moribund assets,” the chamber said.

Adelegan was however optimistic that the new foreign exchange guidelines would bring in more funds, as it has started attracting domestic capital to the equity market.

He added that the new guidelines would also attract foreign investors back to the country, and provide domestic companies with funding and expertise.