The Lagos Chamber of Commerce and Industry
(LCCI), yesterday warned that an upward review
of minimum wage and election spending may
heighten inflationary trends in the country.
It said inflation will remain on the upward
trajectory over the coming months unless the
Federal Government formulates and implements
policies that will enhance non-oil sectors’s
productivity to increase output and moderate
inflation.
Addressing reporters in Lagos yesterday, its
President, Mr Babatunde Ruwase said the grosss
domestic product (GDP) growth of 1.81 per cent
is below the nation’s annual population growth of
about three per cent and remains a cause for
concern due to its wider implications for welfare,
unemployment and poverty in the country.
He said the group has not identitied with or
endorsed any political party, and will never do so.
As elections draw near, Ruwase said the economy
and investors are faced with new challenges that
will require some immediare adjustments.
He warned that current weak economic
fundamentals are bad omen and urged the
Federal Government to formulate and implement
policies and programmes that will facilitate the
growth of domestic and foreign investment to
boost the economy.
The LCCI chief also said growing unemployment
figure was a reflection that growth in the
economy is still weak, fragile and not inclusive.
“It is imperative therefore to sustain efforts to
create the enabling environment to attract more
private capital to boost investment and growth,â€
he said.
Access to and cost of funds remain a big issue for
many domestic investors, he added.
“With commercial bank lending rate at between
20-35 per cent, the private sector especially the
SMEs had challenges in accessing credit for their
businesses. We note the efforts of government
through the Central Bank of Nigeria (CBN) and
Bank of Industry (BoI) to extend intervention
funds to the private sector operators. We also
commend the government for enacting the
Secured Transaction in Movable Assets Act, 2017
(popularly called Collateral Registry Act 2017)
and the Credit Reporting Act, 2017,†Ruwase said.
He urged the government and its agencies to do
more in making sure that credit is accessible to
the private sector especially the SMEs.
Source: thenationonlineng.net/lcci-minimum-wage-election-may-heighten-inflation/
