NACCIMA seeks single window payment system, review of MPR to attract FDIs
To deepen trade facilitation, the leadership of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has listed three conditions government must meet to grow foreign direct investments in Nigeria.
The Chamber listed ratification and domestication of the African Continental Free Trade Area (AfCFTA) Agreement before addressing concerns arising from the pact, saying it is unfair to condemn an agreement without being an active player in the scheme of events.
Others include downward review of MPR and single window payment system to provide enabling environment for manufacturers.
NACCIMA argued that to attract the needed Foreign Direct Investments (FDIs) necessary for economic growth, there is need to effect a downward review of the Monetary Policy Rate (MPR) currently at 14 per cent.
The trade group also frowned at the Central Bank of Nigeria (CBN’s) decision to retain the MPR and Cash Reserve Ratio (CRR) at 14 and 22.5 per cent, arguing that “It is not ideal to attract the private sector investments”.
Explaining more at a press briefing where the state of the nation’s economy was reviewed, the National President of NACCIMA, Iyalode Alaba Lawson averred that “The private sector is advocating a review of the policy to encourage the sector and more investments.”
Looking at the recent figures churned out by the Nigerian Bureau of Statistics (NBS), she recalled that the economy grew by 1.95 per cent in Q1 2018, an increase she said could be traced to increase in global oil prices and the output from the oil sector.
Continuing, she observed further that the nation’s non-oil sector contracted from 92.65 per cent of the Gross Domestic Product (GDP) in the fourth quarter of 2017 to 90.4 per cent in the first quarter of 2018, arguing that “the decrease shows that there is a lot of work to be done to increase the output from the non-oil sector”.
“We need to pay more attention to this sector in view of the non-reliability of oil prices which more often than not is also subject to vagaries of the international political environment.
Lawson noted that as far as inflation continues to be in the double digits, despite the consecutive decline with a positive growth on the economy, there is need to boost production so as to redress the imbalance.
Earlier, the Director-General of NACCIMA, Amb. Ayoola Olukanni stated that though the nation has made some progress in the last three years, there is a need to focus on the mining sector and other non-oil sector for improved earnings.
Explaining issues, NACCIMA President hailed the nation’s foreign exchange reserve, saying the rise is “a good indication because it will lead to more liquidity in the foreign exchange market and help to stabilise the naira.”
