By Merit Ibe
The Lagos Chamber of Commerce & Industry (LCCI) has expressed concern regarding recent actions by the Central Bank of Nigeria (CBN) and the government, citing a surge in the Monetary Policy Rate (MPR) and electricity tariffs as significant contributors to the escalating cost of doing business in Nigeria.
Director General of the Chamber, Dr. Chinyere Almona, who made the remarks emphasised the adverse effects of these decisions on the private sector.
Almona highlighted the challenges faced by businesses in importing and clearing goods at Nigerian ports, particularly due to fluctuating import duty exchange rates, which hamper effective business planning.
She also underscored the detrimental impact of the recent hikes in the MPR, leading to higher interest rates and increased borrowing costs for businesses seeking working capital and expansion opportunities.
The chamber stressed the urgent need for policies that support the real sector of the economy, emphasizing its role in job creation, domestic manufacturing, and economic sustainability.
Regarding the electricity sector, the LCCI acknowledged the rationale behind removing subsidies and transitioning to cost-reflective tariffs to attract foreign investment. However, it raised concerns about businesses bearing the brunt of higher costs without commensurate improvements in service delivery. The chamber called for an aggressive metering programme to ensure fair billing and enhance consumer satisfaction while advocating robust regulatory frameworks to attract foreign investment into the power sector.
Furthermore, the LCCI urged the government to reinvest savings from discontinued subsidies and taxes into critical infrastructure such as power, logistics, and security. It emphasized the disproportionate impact of policy decisions on small and medium-sized enterprises (SMEs), which rely heavily on affordable credit and operate on thin profit margins. The chamber called for a reconsideration of the CBN’s monetary policy stance to avoid further constraints on private sector activities and economic growth.
In addressing importation challenges, the LCCI recommended collaboration between the CBN and the Nigeria Customs Service to establish a fixed import duty exchange rate for critical sectors, along with measures to streamline import processes through automation and improved port infrastructure.