By Merit Ibe, [email protected]
The Nigerian Association of Chambers Of Commerce, Industry, Mines And Agriculture (NACCIMA), has emphasised the need for public-private partnerships (PPP) in bridging infrastructural deficits which make the country less attractive to investors.
President of the association, John Udeagbala made the statement in Lagos, noting that PPP will further help to foster economic growth by developing new investment opportunities and increasing provision of public goods and services.
Udeagbala further advised the incoming government to consider reduction in the size of government functionaries in order to reduce cost and save funds for infrastructural development, pointing out the need to make elective positions and principal appointments into various government agencies, offices and ministerial offices less financially attractive, redirect attention into production economy to revive the ailing Nigerian economy.
He noted that state governments should work in synergy with relevant stakeholders in fashioning appropriate strategies to improve and stabilize the economy, adding that the association is on hand to work with government and other stakeholders to promote the wide adoption of this opportunity to accelerate economic growth and development.
“There is need for urgent solutions to meet the infrastructure needs of our economy, as the Nigerian private sector must now prepare for increased competition from trade agreements such as the African Continental Free Trade Area (AfCFTA) Agreement.”
He expressed grave concern over the unfavourable socio-economic conditions persisting in the nation, lamenting that solutions proffered to government on ways to ameliorate these challenges were yet to be put into action. “We are yet to see any action or steps taken by the concerned authorities to address these multiple issues that we raised.”
On the challenges with Ease of Doing Business (EoDB) in the country, he said in 2019, the Nigerian government began trumpeting its program on the EoDB and indeed made significant progress as the country leaped forward 15 places to 131 out of 190 countries according to the World Bank global ranking. “Nigeria was adjudged one of the 10 most improved economies in the world on the ease of doing business,” but he decried recent statistics on GDP report from Nigeria Bureau of Statistics, which shows a degenerating ease of doing business, which has put a strain on the production industry of the economy resulting in a decline in growth rate.
“This spiral decline in growth rate has continued unabated. Many of the challenges impeding the ease of doing business in Nigeria include multiple taxation, multiple exchange rates, government policies somersaults, poor infrastructure, high cost of power etc.
“NACCIMA as the voice of OPSN calls on the government to consider these impending factors affecting the EoDB in Nigeria and implement various solutions we have suggested in time past for lasting solutions to these myriads of challenges.
“Collaboration with the OPSN and implementations of suggested solutions to these challenges will help ginger the economy back to inclusive growth and development.”
Udeagbala pointed out that the mining sector has continued to contribute meaningfully to the GDP growth of the Nigerian economy, but remains significantly under-tapped.
“Nigeria has huge deposits of mineral resources spread across the different states in the Federation with abundance of Iron Ore (Kogi, Enugu, Abuja), Bitumen (Ogun, Lagos, Ondo), Gypsum (Anambra, Adamawa, Borno), Gold (Oyo, Sokoto, Kebbi), Talc (Kogi, Osun, Niger etc.), Zinc & Lead (Akwa Ibom, Abuja, Benue).
The organised private sector is worried about the several issues which have remained as constraints to the growth of the sector, including poor infrastructure, weak regulatory framework and institutions, lack of oversight, lack of best practices and lack of data.
“Furthermore, concerns over illegal mining, lack of protection for legal miners as well as the dichotomy between federal and state governments have all contributed to constraining investments in the sector. We call on the government to promote investment in this sector through provision of necessary infrastructures and policies that enhance ease of doing business in this sector.”
The introduction of new taxes, NACCIMA says only provide short-term benefits in exchange for long-term negative impact, advocating wider stakeholder consultations in policy design and implementation.