In a message to celebrate the nation’s 61st independence
anniversary, the LCCI said manufacturering could not thrive with high cost of
production and cheaper imports.
According to a statement signed by the Director-General,
LCCI, Dr Chinyere Almona, the chamber said there were challenges with the
escalating cost of governance, fiscal leakages, and revenue optimisation
issues.
It said, “There is an urgent need to address the weak
government revenue base, rising and unsustainable debt profile, over-dependence
on oil revenue, exposure to foreign shocks through weak forex supply,
double-digit inflation.
“We commend the political will of this administration in
taking the bold step on the passage of the Petroleum Industry Act 2021.
“The quality of the business environment remains a source of
concern to investors, especially in the real sector.
“Weak infrastructure, policy environment, and institutions
had adverse effects on the efficiency, productivity, and competitiveness of
many enterprises in the economy.
“These conditions pose a major risk to job creation and
economic inclusion across sectors.”
The statement added that manufacturers had to worry about
the high energy costs and high-interest rates put at 20 per cent and above.
Almona said, “Most SMEs are yet to recover from the impact
of the COVID-19 pandemic that struck last year.
“It is impossible to have a vibrant manufacturing sector in
the face of cheap imports into the country, and high production and operating
cost in the domestic economy.
“Some of these imports are landing at 50 per cent of the
cost of products produced locally. The way forward is to address the
fundamental constraints to manufacturing competitiveness in the Nigerian
economy.”
She added that the nation needed to seek innovative ways to
fund its infrastructure as it could not continue to depend on debt financing.