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NACCIMA joins league of recession exit doubters, says economic shock looms

Even though many experts and private sector groups are still finding it hard to believe released statistics that the economy attempted a snail growth of 0.55 in the second quarter, some that had little faith, are upbeat that continued dependence on imports will make it susceptible to external shocks.

This formed the key position of the nation’s leading industry group, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

In an exclusive interview, the President of NACCIMA, Iyalode Alaba Lawson averred that Nigerian is still exposed to external shocks that may be addressed through intensified implementation of the diversification agenda.

Giving more insights on the issue while looking at the second quarter GDP report, she noted that  the cross-over recorded is attributable to a number of factors which cut across improved monetary and fiscal policies, relative stability of the foreign exchange market due to momentary dollar injections by the apex bank, renewed investor confidence, drive of the private sector as well as relative stability in global oil prices.

According to Iyalode Lawson, “The Quarter 2, GDP report released by the Nigeria Bureau of Statistics has indicated a positive GDP growth rate of 0.55%, signalling that the nation’s economy is technically out of recession, after five consecutive quarters of negative growth of the nation’s economy.

“NACCIMA however counsels that the economy is still exposed to external shocks, as it is still largely import-dependent.”

“We call on the government to continue intensified implementation of programmes and strategies geared towards economic recovery, ensuring ease of doing business, infrastructural development and diversification of the nation’s economy,” NACCIMA boss observed.

However, the best sustainable way forward in her mind will be increased push in the Micro, Small, and Medium Enterprises (MSMEs), Agribusiness, as well as tighter control on imports as a way of stimulating local production.

Another factor that will drive rise in GDP to deepen the secured exit will be to empower the real sector in line with the Federal Government’s Executive Order 003.