2016 recession realities still affecting Nigeria’s macroeconomic environment

Women at a fish market in Makoko slums in Yaba, Lagos, Nigeria, October 9th, 2009. The extensive slum is built on top of water, using timber and iron sheets; and it is inhibited by the fishing community who live in Nigeria as immigrants from the neighbouring countries in Ghana, Benin and Burkinafaso. PHOTO/STEPHEN MUDIARI

THE Lagos Chamber of Commerce & Industry (LCCI) has revealed that the assessment of realities in the macroeconomic environment suggests the economy is yet to recover from the 2016 recession.

In a statement, LCCI Director-General Muda Yusuf, said growth is still sluggish and weak to create employment and lift millions of Nigerians out of poverty.

He called on the government to embrace structural, policy and regulatory reforms to unlock the huge growth potential in the economy.

He admonished the government to focus on strategic areas, such as agriculture, develop rural infrastructure, provision of modern farm equipment at subsidised rates and also ensure linkage between agriculture and industry.

Others are the need to fix power challenges to reduce cost and enhance competitiveness, ensure the patronage of local items, curbing smuggling and dumping and an urgent need to reform port processes and ensure better port infrastructure.

He said: “There is a need to improve domestic connectivity through better transportation infrastructure, ease of cargo clearing process, promotion of economic integration at the sub-regional and continental levels, ease cross-border trade challenges and for the Nigerian Customs to prioritise trade facilitation over revenue generation,” he added.

Yusuf said the Chamber observed the marginal improvement in Nigeria’s output performance as Gros Domestic Product (GDP) growth grew by 2.27 per cent compared to 1.91 per cent recorded in 2018.

On the sectors that recorded the growth, he said last year’s growth was largely driven by Arts, Entertainment & Recreation which grew by 4.12 per cent in 2019 as against 2.53 per cent in 2018.

He stressed that the noticeable growth was buoyed by creative industry players in the sector, favourable demographics and low infrastructure demand.

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