LCCI: Nigeria needs targeted interventions for key sectors

The Director General of the Lagos Chamber of Commerce and Industry, Chinyere Almona, has emphasized the need for targeted interventions in critical sectors of the Nigerian economy to stimulate growth and address security challenges. Following recent FX reforms and the removal of petrol subsidies, Almona highlighted the importance of a blend of fiscal and monetary reforms to attract Foreign Direct Investments (FDIs), support Micro, Small, and Medium Enterprises (MSMEs), and improve the overall business landscape. Despite the current economic fragility, Almona remains optimistic about the potential for growth in the coming quarters. She noted slight improvements in sectors such as solid minerals, construction, and manufacturing but stressed the need for additional measures to aid economic recovery from past reforms. Almona called for a focus on security challenges, particularly in addressing oil theft in the oil and gas sector, to create a conducive environment for FDIs and sustainable economic development. She commended recent policy changes such as the removal of oil subsidies and exchange rate harmonization, emphasizing the significance of support for local industries and the improvement of production capacity. Furthermore, Almona highlighted the pivotal role of MSMEs in the economy and advocated for measures to safeguard their well-being amidst policy shifts and economic pressures. She underscored the importance of maintaining access to finance for MSMEs and urged against potential interest rate hikes that could further strain the sector. Almona encouraged MSMEs to explore collaboration, partnerships, and technology adoption to enhance efficiencies and reduce operational costs. Additionally, she addressed the impact of fuel price increases on businesses, emphasizing the need for cost-cutting strategies to ensure sustainability. Looking ahead, Almona acknowledged the challenges in achieving competitive pricing and intra-African trade competitiveness. She emphasized the significance of infrastructure development, reduced tax burdens, and targeted government support to enhance the business climate and ensure industry resilience. Almona further recommended targeted concessionary credit to the private sector amid monetary tightening measures by the Central Bank of Nigeria and called for government efforts to reduce the cost of governance. She stressed the importance of accountability and alignment between governance and the population's economic realities to foster trust and credibility in policy-making.