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Tag: LCCI

  • Tinubu’s democracy speech reflects ambitious vision – LCCI

    Tinubu’s democracy speech reflects ambitious vision – LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) says President Bola Tinubu’s Democracy Day speech reflects an ambitious and optimistic vision for Nigeria.

    In a statement in Lagos on Thursday, the Director-General of LCCI, Dr Chinyere Almona, said the speech showed government’s appreciation of democracy, economic development, security and social cohesion.

    Almona said that the President’s focus on economic growth, improving security, and increasing funding for education, healthcare, and infrastructure promised improved economic performance in the near future.

    “We join all Nigerians to celebrate the peaceful transition and commitment to democratic values in the past 26 years.

    “A stable political environment is very crucial for business success and for attracting investments.

    “Government must stay committed to executing all its proposed programmes and ongoing reforms to ensure Nigerians reap the benefits of democracy without further delay,” she said.

    The director-general also urged the government to  ensure clear and consistent communication about economic reforms and policies to businesses and the general public.

    This, she stated, would reduce uncertainty, build confidence and establish transparent mechanisms for tracking and reporting progress made through reforms.

    Almona also called for targeted support for businesses to reduce their cost burdens relating to energy, logistics and regulatory compliance.

    She said that LCCI recommended non-cash interventions that could ease the harsh production environment.

    Almona also advocated expansion of social safety net programmes to support households affected by high living costs and inflation.

    She also called for a more collaborative environment among government, businesses, the civil society and labour unions to ensure fair and timely negotiations on wages and working conditions.

    She said that the government must implement programmes that would support strategic sectors pivotal to job creation, tax revenues and infrastructure development.

    According to her, the oil and gas, power, and agriculture sectors require special attention as they offer catalytic support to the economy.

    “As Nigeria reflects on the progress made and the path ahead, we urge government to remain steadfast about implementing all the required reforms toward a more sustainable and resilient economy.

    “We call on government to work toward a nation built on the rule of law, justice and social cohesion even in our diversity and political sophistication,” she said.

  • How to foster growth in 2025 – LCCI

    How to foster growth in 2025 – LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) says sustained fiscal reforms, exchange rate stabilisation and enhanced monetary policy coordination are needed to foster growth in 2025.

    Mr Gabriel Idahosa, President, LCCI, said this on Wednesday in Lagos, via the chamber’s 2024 Economic Review and 2025 Outlook report.

    Idahosa stressed that prioritising diversification, investing in critical sectors, and policy consistency were essential to achieving the government’s medium-term economic recovery objectives.

    He commended the resilience and tenacity of the Nigerian people and business community in navigating the economic challenges of the past year.

    He noted that the Nigerian economy was at a critical juncture, presenting hope for possible transformative growth, which required decisive and strategic policy actions to address lingering challenges.

    “As we enter 2025, the global economy is poised at a crossroads, grappling with uncertainties while uncovering new opportunities.

    “Key developments, such as the inauguration of a new United States of America administration under Donald Trump, bring both promises and challenges.

    “Markets worldwide will likely navigate a recalibration phase as businesses and governments adapt to shifts in international trade, energy strategies, and geopolitical alliances,” he said.

    Idahosa emphasised the need for global collaboration and innovation as economies recover from previous downturns and adjust to emerging disruptions.

    He said policymakers and industry leaders must address pressing issues like the debt crisis, climate change, technological transformation, and social equity with bold and actionable strategies.

    According to him, the dynamic interplay of these factors will undoubtedly shape the trajectory of global economic health and set the stage for long-term growth.

    “In 2024, Nigeria’s manufacturing sector experienced sluggish growth, contributing approximately 8.9 per cent to Gross Domestic Product (GDP) as it faced significant headwinds.

    “In spite of the challenges, specific sub-sectors like food processing and textiles showed resilience, supported by domestic demand,” he said.

    The LCCI president said that in 2025, the manufacturing sector was projected to grow moderately.

    This growth, he said, would be driven by anticipated improvements in infrastructure, enhanced access to foreign exchange, and government policies aimed at promoting local production and reducing reliance on imports.

    He stressed that addressing structural bottlenecks, fostering innovation, and expanding public-private partnerships would be critical for unlocking the sector’s growth potential.

    “Looking ahead to 2025, cautious optimism prevails as GDP growth is projected at 3.2 per cent by the International Monetary Fund driven by ongoing reforms and more substantial contributions from the oil and non-oil sectors.

    “Inflation is expected to ease as monetary policies take effect, with trade, agriculture, and manufacturing poised to drive job creation — vital for addressing unemployment and poverty.

    “Closing infrastructure gaps remain a top priority, necessitating innovative funding models and enhanced public-private partnerships,” he said.

    He also urged the Federal Government to prioritise some key areas to unlock sustainable economic growth and improve the well-being of Nigerians in the year ahead.

    Idahosa said government must address inflation and promote price stability, ensure fiscal sustainability and debt management, improve ease of doing business, advance trade and investment among others.

    He charged businesses to embrace innovation, digital transformation, and sustainability as growth strategies.

  • Fuel price hike ‘ll reverse ease in inflation – LCCI

    Fuel price hike ‘ll reverse ease in inflation – LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) has said that the  hike in fuel price from N568 to N855 would trigger widespread price increases, potentially reversing the recent ease in inflation.

    Director General, LCCI, Dr Chinyere Almona, said this in a statement on Wednesday in Lagos.

    She noted that the official price of petrol, now at N855, was a clear indication that the shortfall between the landing cost and the former price level of N568 charged by Nigerian National Petroleum Corporation Ltd.(NNPCL) had been reduced.

    Almona, however, said  that completely removing it and subjecting Nigerians to a significant fuel price hike presented significant challenges.

    “A steep price hike would likely trigger widespread price increases, potentially reversing the recent ease in inflation seen in July and leading to another surge in inflation rates.

    “Balancing the need for fiscal responsibility with the economic impact on citizens is a complex task for the government.

    “The impact on businesses will be severe, with fuel prices affecting supply and logistics, power generation, transportation, and factory operations.

    “The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power. Of course, this will be followed by job losses,” she said.

    Almona said the operation of the Dangote Refinery, which now produces fuel and diesel for sale, offered a glimmer of hope.

    She said this game-changing intervention could restore some stability to the oil and gas sector, which had been grappling with significant distortions in 2024.

    The LCCI D-G advocated  a more sustainable approach to support the development of additional local refineries to process crude for local consumption and potential export across Africa.

    This long-term strategy, Almona said, was crucial for the stability and growth of our economy.

    “As an immediate intervention, it would be beneficial for the Port Harcourt Refinery to commence operations alongside production from the Dangote Refinery.

    “Given the current challenges with importing refined fuel, relying on local production may be the most viable option at this time.

    “We recommend sustaining local supplies, with the expectation that demand will eventually align with supply, leading to equilibrium pricing across various sources,” she said.

  • CBN told to lower import duty exchange rate

    CBN told to lower import duty exchange rate

    The Lagos Chamber of Commerce and Industry (LCCI) has advised the Central Bank of Nigeria (CBN) to apply an import duty exchange rate lower than the official rate for a fixed time.

    LCCI’s Director General, Dr Chinyere Almona, gave the advice on Wednesday in Lagos, in reaction to the outcome of the 295th Monetary Policy Committee’s (MPC) meeting on Tuesday.

    The MPC raised the Monetary Policy Rate (MPR) by 150 basis points from 24.75 per cent to 26.25 per cent while the Liquidity Ratio (LR) remains unchanged at 30.0 per cent.

    Also, Cash Reserve Ratio (CRR) was retained at 45.00 per cent for deposit money banks and 14 per cent for merchant banks while the asymmetric corridor was retained at +100/-300 basis points around the MPR.

    According to Almona, the call to apply a lower import duty is to help businesses plan better and serve as a palliative that benefits a high proportion of the populace.

    She recalled that the LCCI had earlier in the year called on the government to implement specially targeted support for strategic industries.

    She said that as inflation continued to rise in spite of the various interventions by monetary and fiscal authorities, more decisive and multifaceted action to stabilise prices and support citizens’ purchasing power must be taken.

    “We acknowledge that curbing inflation and stabilising prices are not easy steps to take, especially as we strive for reasonable growth to create jobs and reduce the poverty level in Nigeria.

    “The inflation rate rose to 33.69 per cent in April and in direct response to this persistent rise in inflation, the CBN hiked the benchmark interest rate by 150 basis points to 26.25 per cent from 24.75 per cent.

    “With several hikes in the past months, we are yet to record a significant impact on stabilising prices and the twin burden of high inflation and interest rates is overheating the economy and causing increased volatility and uncertainty.

    “The private sector is once again thrown into more profound loan repayment crises as interest rates adjust to the new monetary policy rates.

    “We are likely to see a reduction in demand as purchasing power weakens and this may lead to lower industrial production and loss of jobs eventually,” she said.

    Almona also emphasised the need to implement targeted fiscal and monetary interventions that could boost food production, lower the cost of doing business and overhaul transport infrastructure.

    She added that these interventions would increase investment in innovative security architecture driven by technology, create a more enabling environment for the power, oil and gas sectors, and boost non-oil exports.

    The LCCI’s Director General said the ongoing debate on a new minimum wage for Nigerian public workers was becoming a critical variable in the discourse.

    Almona said that the government should begin to plan for the massive commitment of resources for the implementation of the new minimum wage when parties finally reach an agreement.

    “This calls attention to reducing the cost of governance, eliminating duplicate functions in government agencies through mergers, and investing more in the deployment of technology to automate some government processes.

    “Beyond the instrument of rate hikes to curb inflation, economic managers should consider non-cash interventions to reflate the economy without necessarily increasing the currency in circulation.

    “If this tightness continues, we should not expect to achieve our growth projection of about 3.37 per cent this year.

    “Government should seek more options to support industrial productivity and fight insecurity.

    “It should invest more in infrastructure like power and transportation, deploy more technology for automation to ease the cost of doing business, and give a boost to non-oil exports to increase our foreign exchange earnings,” she said.

  • Oronsaye Report: LCCI seeks a clear action plan for implementation

    Oronsaye Report: LCCI seeks a clear action plan for implementation

    The Lagos Chamber of Commerce and Industry (LCCI) has called for a clear action plan for the implementation model of the Stephen Oronsaye Report.

    LCCI Director General, Dr Chinyere Almona, on Friday in Lagos, said the call was to avoid an over-bloated structure that worsened bureaucracy and reduced the chance of service inefficiency due to loss of expertise.

    The Federal Government had approved the implementation of Oronsaye’s report aimed at restructuring federal agencies, parastatals, and commissions.

    The move, which involves merging, subsuming, and scrapping agencies with similar functions, is expected to enhance efficiency in the civil service and reduce the cost of governance.

    Almona stated that the decision by the Presidential Committee to implement the report was quite commendable, particularly at this time when Nigerians were clamouring for a reduction in the cost of governance in the face of harsh economic conditions.

    She noted that the transformative journey called for a deep commitment and a strong will on the part of the federal government to implement the report.

    “There are issues that can be addressed almost immediately, while issues bordering on regulatory and legislative frameworks can be taken through the legally required processes within the shortest time possible.

    “It would be important for Nigerians to begin to see quick actions regarding implementation immediately.

    “In the next few days, Nigerians would expect to see submissions to the Federal Executive Council (FEC) for all necessary approvals and actions,” she said.

    The LCCI DG presented some recommendations to ensure the report was implemented in the best interest of all Nigerians.

    She emphasised the need to establish a steering committee comprising some members of the Oronsaye’s committee, as much as it is feasible to ensure continuity.

    Almona added that effective implementation required the cooperation of all stakeholders, hence the need for robust communication and publicity throughout the implementation process to drive transparency and accountability.

    She said the emerging new structure and composition should have clear definitions of functions, protocols, and reporting lines.

    “In addition to the clearly defined functions, inter-agency and inter-ministerial engagement should be encouraged.

    “As the new structure emerges, we recommend that the ministries return to their core function of policy formulation, monitoring, evaluation, and reporting while the agencies under them do the implementation of such policies.

    “The National Assembly is a very critical stakeholder in this exercise and needs to be fully involved and interested in supporting the implementation.

    “The laws that established the agencies would need to be reviewed, some would be repealed, and new ones formulated and signed into law,” she said.

  • LCCI elects Idahosa as President

    LCCI elects Idahosa as President

    The Lagos Chamber of Commerce and Industry (LCCI) has elected Mr Gabriel Idahosa as President and Chairman of the Council.

    Dr Chinyere Almona, Director General, LCCI, made the announcement, during the Chamber’s 135th Annual General Meeting (AGM) on Thursday in Lagos.

    The News Agency of Nigeria (NAN) reports that Idahosa’s appointment follows  expiration of the tenure of Dr Michael Olawale-Cole, who had been serving since 2021

    Almona described the new LCCI president as a distinguished individual with a remarkable track record of leadership, dedication, and commitment to the growth and development of various organisations, particularly in the fields of professional services, trade promotion, and industry.

    She said that in the last two years, Idahosa served commendably as the Deputy President of the Chamber.

    She noted that his emergence as President of LCCI was in recognition of his contribution and commitment to the ideals of the Chamber’s movement, its public policy advocacy, and the protection of the interests of the Nigerian business community.

    “Indeed, we are very pleased as Mr Gabriel Idahosa assumes the role of President of the LCCI.

    “As a council member and a key officer of the Chamber, he has brought his extensive knowledge and experience to bear and has provided quality perspectives to deliberations at the Chamber.

    “We are confident that his presidency will enhance the Chamber’s role as a leading advocate of best business policy and practice to promote and protect the interest of its members and the business community at large,” she said.

    The LCCI Director General revealed that the chamber recorded N646.95 million as revenue for the year 2023, against the N503.87 million of year 2022, translating to an increase of 28.4 per cent.

    In his remarks, the outgoing president,  Olawale-Cole, urged government to provide the much needed support to enhance the successful takeoff of Dangote refinery.

    This, he stated, would reduce importation of refined oil products, address the current pressure on foreign exchange and ensure that the money invested in the building of the refinery does not go to waste.

    Olawale-Cole noted that developments in the global and domestic scene significantly impacted world economies, Nigeria inclusive, even as the country continued to battle record high inflation rates, high energy costs, and supply chain disruptions.

    He said the business environment witnessed some developments that either enabled it or made it more challenging.

    He, however, noted that the Nigerian economy continued to recover and maintain a positive growth trend in 2023, at a slow pace.

    Olawale-Cole said that LCCI, as the leading advocacy voice of the organised private sector, had remained resolute in promoting investment friendly policies that support private sector development.

    “We have been very consistent in our policy advocacy, particularly in protecting the business interests of our members.

    “We have also kept our promise of providing quality business development services to our esteemed members and the broader business community,” he said.

    He said during his tenure, the Public Affairs and Advocacy Committee under the leadership of Prince Abimbola Olashore, Vice President, LCCI, considered key advocacies and recorded notable achievements.

    Olawale-Cole said the chamber noted that only 24 per cent of Central Bank of Nigeria (CBN) Anchor Borrowers Loan was repaid.

    He said that the programme was effective but strongly abhorred farmers’ apathy towards loan repayment.

    He stated that government’s intervention funds should target organised private sectors that had adequate profiling of members, and by implication, could either guarantee the loan or bring the erring and defaulting members to order.

    “Adequate Farmers’ Census that is free of any form of politics is needed and must be updated regularly to prevent future infiltration of beneficiary list with non-farmers’ profile,” he said.

    He also stressed the need to discourage exportation of unprocessed minerals which he said should either be exported as semi-finished or finished product.

    Olawale-Cole advocated a careful review of the country’s immigration processes to prevent the influx of illegal immigrants into the mining sector in Nigeria.

  • Independence: LCCI speaks on huge implications of sub-optimal performance of Nigeria in past 63 years

    Independence: LCCI speaks on huge implications of sub-optimal performance of Nigeria in past 63 years

    As Nigeria marks its 63rd Independence today, the Lagos Chamber of Commerce and Industry (LCCI) has addressed the huge implications of the sub-optimal performance of the country in past 63 years.

    According to the LCCI, Nigerians have persevered in promoting democracy, stressing that the country has become Africa’s Pride since 1999 in spite of its economic challenges

    The LCCI President, Dr Michael Olawale-Cole, said this on Saturday in Lagos, in a report to commemorate Nigeria’s 63rd Independence Day Anniversary.

    Olawale-Cole said Nigeria’s economy also struggled with high inflation, weak currency, declining reserves, rising debt burden, high and rising unemployment, rising income gaps and poverty levels.

    According to him, a review of the past 63 years shows that the Nigerian economy performed sub-optimally with huge implications on citizens’ welfare and rising uncertainty.

    ”In spite of these challenges, 24 years ago, Nigerians’ support for democracy has earned the country enormous goodwill as one the few stable democracies in Africa.

    ”The present administration has implemented far-reaching policy reforms, such as removal of fuel subsidy, exchange rate harmonisation, tax reforms and many more in an effort to change the country’s growth trajectory.

    ”Sustaining market-friendly policies and promoting macroeconomic stability is one of the most important steps in achieving optimal growth and improving citizens welfare,” he said.

    He said that Nigeria must address the fundamental constraints hindering manufacturing competitiveness to drive the drastic transformation required for meaningful economic prosperity.

    He also called for an urgent review of the wage structure of Nigerian workers, adding that at 30 dollars for 30 days, the minimum wage remained extremely poor.

    According to him, this is particularly important given the current high inflation rate, volatile exchange rate, low Gross Domestic Product (GDP) growth, weak infrastructure and insecurity among others.

    ”I call on the Federal Government to address the macroeconomic issues and the insecurity challenges facing the country.

    ”The economic growth trend, measured by the GDP performance, has generally been positive over the last two decades, except for recent challenges posed by debt crises, inflation risks, insecurity, post-effect of subsidy removal, and foreign exchange illiquidity.

    ”The business environment remains a concern to investors, especially in the real sector.

    ”Weak infrastructure, uncertain policy environment, and institutions have continued to adversely affect the efficiency, productivity, and competitiveness of many enterprises.

    ”These conditions pose a major risk to job creation, economic inclusion, and competitiveness, especially with the Africa Continental Free Trade Area (AfCFTA) agreement now in place,” he said.

    Olawale-Cole, who wished the government and people of Nigeria a happy 63rd Independence Day Anniversary, said the way forward was to address the fundamental constraints to manufacturing competitiveness.

    He said key challenges in the business environment such as inadequate power supply for production and generally weak infrastructure must also be addressed.

    He commended the Federal Government for providing clarity on the economy and the President’s Eight-Points Agenda, saying its full implementation would ensure optimal growth and improved citizens welfare.

  • Why subsidy removal is good for Nigeria – LCCI

    Why subsidy removal is good for Nigeria – LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) says the Federal Government’s planned petrol subsidy removal remains one of the best economic decisions that will reduce Nigeria’s debts and tackle widespread corruption in the oil sector.

    LCCl’s President, Dr Michael Olawale-Cole, said this during the chamber’s second quarter state of the economy conference on Tuesday in Lagos.

    Nigeria secured an $800 million relief package from the World Bank to minimise the effect of subsidy removal on the most vulnerable in the society.

    Recent data by the Debt Management Office (DMO) puts Nigeria’s public debt at N46.25 trillion ($103.11billion) as at end-December 2022, compared to N39.56 trillion ($95.77 billion) in 2021.

    Olawale-Cole, however,  urged government to begin to roll out several cushioning measures ahead of the subsidy removal in the second half of the year to mitigate any likely disruptions to the economy.

    “Removal of fuel subsidies is, amongst others, expected to spur investments in domestic refining and petrochemicals and create a significant value chain for the various stakeholders.

    “Though the planned removal of fuel subsidies may cause further northward movement of inflation in the short term, it is arguably one of the best economic decisions to reduce our unsustainable debts and widespread corruption in that sector.

    “The government must however, take cognisance of its socio-economic implications, especially with unemployment at the unwholesome rate of about 40 per cent,” he said.

    The LCCI’s President frowned at borrowing to fund subsidies or support uneconomic ventures, saying that government’s fixation on debt accumulation was unhealthy.

    According to Olawale-Cole, government must prioritise exploring other avenues, including opening equity opportunities, offloading/selling of its real estate holdings and tackling oil theft to create room for fiscal manipulation.

    He stressed the need to importantly follow the recently launched and restructured Ministry of Finance Incorporated (MOFI) by President Muhammadu Buhari on Feb. 1, to optimise national assets.

    The LCCI’s president advised that copious references should henceforth be made on the growth and returns of the country’s stock of financial assets in corporate equities, real estate and infrastructure spaces.

    This, he said, would provide local and global observers a balanced picture of our financial position.

    “It would also motivate national asset managers, led by MOFI, to grow our assets and the returns on them as well as motivate our national liability managers, led by the DMO, to minimise our liabilities and the costs we incur on them with equal vigour.

    “Indeed, issuance of joint reports by MOFI and DMO would be most ideal going forward.

    “One-sided updates on liabilities with no updates on assets when such updates were adequately available could well be blamed for some of the downgrades of nigeria’s debt issuance risk profile and outlook.

    “The rating outcomes would have been more favourable, had updates on assets been provided side-by-side with updates about liabilities,” he said.

    Addressing inflationary pressure which inched upwards in March to 22.04 per cent, Olawale-Cole noted that hiking monetary policy rate had thus far proven to be ineffective and insufficient in taming inflation.

    He stated that in most economies, amid the cost-of-living crisis, the priorities remained achieving sustained disinflation and reasonable real growth.

    “Therefore, there is a clear need for the government to strengthen its support to critical sectors like agriculture, export infrastructure manufacturing, power, energy and insecurity.

    “Government should also look at ways to improve supply chains as well as cushioning the cost of production by assisting manufacturers with subsidised inputs and foreign exchange allocation.

    “While the Central Bank of Nigeria embarks on monetary tightening to tame inflation, it should ensure that targeted concessionary credit to the private sector is sustained for Micro, Small and Medium Enterprises (MSME),” he said.

  • FG cautioned to tread cautiously in raising tax rates

    FG cautioned to tread cautiously in raising tax rates

    The Lagos Chamber of Commerce and Industry (LCCI) on Tuesday urged the Federal Government to tread cautiously in raising tax rates in an attempt to shore up its revenue in 2023.

    Dr Michael Olawale-Cole, President, LCCI, gave the charge at the chamber’s second quarter state of the economy conference held in Lagos.

    He suggested that rather than increase taxes, government should explore new ways of rescuing some tax expenditures to raise its revenue.

    According to him, leaving the tax rates at their current levels will not lead to loss of revenue against what is proposed in the Finance Bill 2022.

    He said based on feedback from operators in the oil and gas sector and the wider business community, the chamber recommended the retention of the Tertiary Education Tax rate at 2.5 per cent.

    He noted that at government’s proposed increase to 3 per cent, Nigeria’s corporate income tax rate would effective rise to about 36 per cent; one of the highest rates in the world.

    Olawale-Cole urged the Federal Government to retain the 30 per cent Company Income Tax for all oil and gas companies.

    He said government should also consider amending the Petroleum Profit Tax Act with the same provisions in the Petroleum Industry Act 2021.

    He noted that with divestments by some large corporations from Nigeria’s oil and gas sector, government needed to reposition the industry through a steeply implemented PIA to pave the way for new investments.

    He added that gas flare-out projects should be supported with the right incentives to ensure monetisation of the resource for the benefit of the economy.

    “We recommend that finance bills are presented for extensive stakeholders’ consultations before the National Assembly passes them into law.

    “The LCCI will continue to work toward rallying the private sector to support the implementation of the 2023 federal budget.

    “On achieving revenue targets, Ministries, Departments and Agencies and government-owned enterprises can intensify their revenue mobilisation efforts in an enabling environment where the private sector thrives.

    “To achieve the laudable objectives of the 2023 budget, we urge government to sustain current efforts toward the realisation of crude oil production and export targets.

    “This it could do by strengthening the investment-friendliness of the oil and gas industry,’’ the LCCI president said.

    On Naira redesign and circulation, Olawale-Cole advised the CBN to obey and to implement to the letter, Supreme Court’s judgment that allowed old notes as legal tender till Dec. 31.

    He stressed that lessons learnt in the aborted implementation of the policy should be used to prepare for a more improved and hitch-free implementation with necessary infrastructure put in place for a truly cashless economy.

    The LCCI also noted that government, being the biggest spender, should establish a cashless payment for all its procurements with more automation of its services.

    “With more automation and less human interface, corruption tendencies will reduce.

    “We commend Federal Government’s planned policy that all payments from the public treasury beyond the threshold approved for daily cash limit by the CBN must be done electronically with effect from March 1.

    “The implementation of this policy and the strict monitoring of it can be very effective in deepening a cashless economy,’’ Olawale-Cole said.

  • Naira: Deadline extension of no value if scarcity persists – LCCI

    Naira: Deadline extension of no value if scarcity persists – LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to educate the public on grey areas with regard to scarcity of the new Naira notes.

    The LCCI also advised the apex bank to strength the police implementation capacity.

    The chamber said that these would reduce public tension and ensure seamless transition from the old to the new Naira notes.

    The Director-General of LCCI, Dr Chinyere Alumona, gave the advice in a statement on Friday in Lagos.

    She said that when the redesigned Naira notes were launched in December, expectations were high for a smooth transition.

    Alumona, however, regretted that expectations of industrialists and other members of the public might have been dashed with business deals impeded and  time and value lost.

    She said that the CBN needed further enlightenment of the public on grey areas regarding the scarcity of the new notes in addition to strengthening its policy implementation capacity.

    The director-general said that scarcity of the new notes  had triggered varied reactions from Nigerians.

    She said that the reactions showed that phasing out of old notes, withdrawal limits and scarcity of new notes might have started impacting businesses and livelihoods  beyond intentions.

    “While banks have endeavoured to meet the currency demands of customers through automatic teller machines and electronic transfers, Naira scarcity has rendered their efforts ineffective.

    “Businesses are suffering the consequences of the CBN currency management policy lapses.

    “Regarding the deadline extension for phasing out old notes, the chamber does not see any value in this if the scarcity of the new Naira notes persists,” she said.

    Alumona said that although the chamber supported the drive toward a cashless economy, redesigning the Naira notes and phasing out old ones could have been better planned.

    She said that such policies should be implemented with no hardship for businesses and individuals.