MAN, LCCI rue 2.55% growth, identify three drawbacks of GDP in Nigeria
Even though Nigerian government officials and a section of financial analysts are upbeat that Nigerian economy has overtaken South Africa considering its current technical recession status, the leadership of both the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have rued the rise in Nigeria’s economic growth indices to 2.55 per cent in the fourth quarter of 2019.
To them, the growth recorded by the Nigerian economy within the period under review is very hard to believe considering the state of businesses and operating environments’.
In a terse statement issued by the President MAN, Engr Mansur Ahmed, the trade group averred that “The real GDP growth rate is impressive in view of the fact that the 4th quarter record represents the highest quarterly growth performance since the 2016, but largely it is below the recession desirable because the 2.55 per cent growth is still below the population growth rate of 2.6 per cent.”
The statement queried why the indices should be considered as growth when the manufacturing sector’s contribution to the GDP remained stagnant at 8.74 per cent in the fourth quarter of 2019.
The President therefore argued that “This development clearly depicts that the manufacturing is still struggling.”
Corroborating MAN, the LCCI official position on the new growth figures released by the National Bureau of Statistics (NBS) via a statement said the manufacturing sector had remained stunted due to tough operating environment, poor infrastructure and unpredictability of government policies.
The Director General of LCCI, Dr Muda Yusuf called on the government to make sure it created a scenario that amongst other things, “patronizes locally produced items, curb smuggling and dumping and urgently reform port processes and ensure better port infrastructure.”