LCCI, manufacturers call for speedy revival of railways, power

Manufacturers and the Lagos Chamber of Commerce and Industry (LCCI) want the federal government to revive the power sector and the railway system to stimulate the productive base of Nigeria.
They say efficient power supply and good railway system will cut production costs for factories, thereby raising employment, export and the gross domestic product of the country, adding that cheap funding will boost production and steer small business.
“What is paramount now is to fix the impediments to productivity and competitiveness in the economy,” said Nike Akande, president of the LCCI, at the opening ceremony of the 31st international trade fair in Lagos.
“If we tackle these constraints, we would encourage domestic investment, attract foreign capital and facilitate the realisation of key objectives of the Economic Recovery and Growth Plan (ERGP),” Akande said at the fair, which has as its theme, ‘Promoting Industrialisation for Economic Recovery and Sustainable Growth’.
Akande pointed out that the non-oil economy is generally more inclusive, stable, sustainable, integrated and growth-oriented, and characterised by high economic linkages.
“It is important that we appreciate these fundamental dynamics of the Nigerian economy in order to be able to construct policies that would ensure sustainable economic development,” the LCCI president said.
He commended the commitment of the government towards making Nigeria a business-friendly environment, citing the movement of the country to 24 places in the World Bank Doing Business Index as a testament that the Presidential Enabling Business Environment Council has made remarkable efforts.
From 169th in the World Bank Doing Business Index last year, Nigeria is now 145th, moving up 24 places, placing the country among top 10 performers in the last 12 months. The country of 180 million people is expected to become the most populated after China and India in 2050 but its power generation capacity is still around 5,000 MW and lending to the private sector is expensive, hovering between 18 and 30 percent, which investors say are antithetical to development.
“If we have achieved 7,000 MW of power in generation, we must double that in terms of distribution. A litre of diesel if N200 and it increasing our costs as manufacturers. SMEs are struggling because they can’t get credit at 25 percent and compete with imports and even globally,” said George Onafowokan, managing director of Coleman Wire & Cables.
Iyalode Alaba Lawson, national president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), said it is important for the government to boost the economy through the non-oil sector, stressing that now is time for Nigeria to take its place in global industrialisation.
“We appeal to the government to improve infrastructure development to promote manufacturing and improve the economy,”Alaba-Lawson said.
On his part, Muhammadu Buhari, Nigeria’s president, said government has taken big steps to stimulate industrialisation, including identifying core priorities which include agriculture and good security and good infrastructure.
Represented by Okechukwu Enalamah, minister of industry, trade and investment, Buhari said the government has always wanted to create the right business environment for investors.
“We want a situation where, if you want approvals, they will be so easy to get. Lagos is already keying in and we are happy over that,” he said.
He pointed out that the government has set up the Industrial Policy and Competitiveness & Advisory Council to establish linkages between the private and the public sectors, adding the Bank of Industry (BoI) is ramping up lending to businesses, while the Development Bank of Nigeria is on the pipeline.
“We want to create industrial parks and special economic zones where industries will have economic incentives. We want to demonstrate what will happen when industries have lower cost of doing business and infrastructure,” he stated.
Akinwumi Ambode, Lagos State governor, said Nigeria’s movement to 24 places on the World Bank Doing Business Index is an accumulation of good policies taken to boost the business environment in the country.

ODINAKA ANUDU