The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to adopt more cautious fiscal policies to effectively manage inflation and address concerns regarding high-interest rates and unstable exchange rates in the nation.
Dr. Chinyere Almona, the Director General of LCCI, communicated this recommendation in response to the National Bureau of Statistics (NBS) second-quarter 2023 Gross Domestic Product (GDP) report.
She emphasized that the deregulation of the downstream oil sector and fluctuations in exchange rates resulted in a notable contraction in the transport sector and subdued growth in both manufacturing and trade.
CEO calls for balanced reforms to foster inclusive economy
In a similar vein, Dr. Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), highlighted the need for a careful balance in implementing government reforms to ensure a transition to a more inclusive economy.
The NBS had previously reported that the country’s economy expanded by 2.51% in the second quarter of 2023, up from 2.31% in the first quarter.
This growth marked the 11th consecutive quarter of economic expansion, though it remained lower than the 3.54% recorded in the first quarter of 2022.
Almona pointed out that the modest growth could be attributed to the challenging economic conditions arising from fuel subsidy removal and exchange rate adjustments.
She specifically noted that the significant decline in the transport and storage sector, coupled with subdued growth in manufacturing and trade, primarily reflected the impact of downstream oil sector deregulation, exchange rate instability, and weakened consumer demand.
