LCCI hinges investors’ loss of confidence on policy inconsistency

VP rallies support for local manufacturers
Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, has warned the Federal Government and its agencies that continued policy instability and inconsistency pose significant risks to investor confidence because frequent policy reversals affect long-term business planning.

She also highlighted the cumbersome trade facilitation processes, “which hinders the smooth flow of goods and services,” ultimately increasing the cost of doing business in Nigeria.

This was as Vice President Kashim Shettima pledged the government’s dedication to the health of Nigerian enterprises, describing them as catalysts for a sustainable economic future.

When the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, visited the chamber to discuss opportunities and challenges around trade and investment in the country, critical issues such as policy inconsistency, complex trade facilitation processes, huge infrastructural gaps, access to finance, and the overall ease of doing business in the country were laid out.

Infrastructural deficiencies were also identified as a major impediment to economic growth, particularly in areas such as transport networks, power supply and digital infrastructure.

Further, Almona noted that access to finance remained a critical challenge for businesses, especially Small and Medium-sized Enterprises (SMEs), limiting their growth potential and competitiveness.

The minister acknowledged the challenges and reaffirmed the Federal Government’s commitment to addressing them.

She assured the chamber that concerted efforts were being made to implement policies that enhance trade facilitation, attract investments and improve the ease of doing business in Nigeria. She also stressed the government’s commitment to fostering a more stable and predictable policy environment, developing infrastructure and expanding financing opportunities for businesses.

According to Almona, based on assurances from the minister, actions in the following areas are expected over the next few weeks, including acceleration of the economy’s diversification and industrialisation through the Federal Government’s reforms.

“The Ministry of Industry, Trade, and Investment has proposed to collaborate with other government institutions like the Ministry of Communications and Digital Economy, the Ministry of Health and Social Welfare, and the Federal Ministry of Art, Culture, Tourism and Creative Economy to deepen the country’s Gross Domestic Product (GDP) and broaden its productive base. The ministry is also working with many sectors in the capital market to deepen the market and ensure that investment attracted is focused on the real and productive sectors of the economy.

“Regarding trade policy, the ministry will focus on operationalising the African Continental Free Trade Area (AfCFTA) and ensuring our Free Trade Zones (FTZs) and manufacturers are competitive and enabled to export into the region and across the world with a focus on agriculture and manufacturing. The recently released outlook of the ministry also indicates that the Federal Government will sustain the current reforms, focus on empowering the non-oil sector for more productivity and push for more market access for our exporters,” Almona noted.

SHETTIMA also commended SecureID Ltd, the country’s leading smartcard manufacturing company, for its two decades of excellence in manufacturing and digital solutions.

Speaking during a tour of the SecureID Smartcard and Digital Solutions Facility in Lagos, yesterday, to mark its 20th anniversary, the VP described the company as a shining example of Nigeria’s industrial and technological potential. He praised the company’s evolution from a local start-up to a continental leader in digital solutions, now capable of producing 200 million cards yearly, including Nigerian international passports and voter identification cards.

“This enterprise embodies the promise of what our nation can achieve when our innovative minds are given the support to compete with the rest of the world. From a humble local start-up to a continental leader, SecureID has proven that with vision, dedication and hard work, Nigerian businesses can stand tall on the global stage,” he said.

Emphasising that economic growth is inseparable from enterprise development, the VP noted that the survival of local enterprises was the true catalyst of a vibrant economy.

“We can no longer afford to pay lip service to supporting businesses, regardless of their scale,” he stated, citing government interventions designed to spur industrial expansion, including fiscal reforms and the Manufacturing Sector Fund, which encourages investment in key industries.