By Etuka Sunday, Abuja
Abuja Chamber of Commerce and Industry Limited (ACCI), has said that businesses in Nigeria are currently under severe threat therefore, urged the Federal Government to act fast in the implementation of the 2016 budget to avert impending doom.
The President, ACCI, Tony Ejinkeoyen who made the disclosure however, said there was still hope for businesses in Nigeria if the 2016 budget can be expeditiously implemented with discipline.
Ejinkeoyen said, apart from blocking of wastages through the TSA, the policies that evolved over the last one year are yet to boost domestic production and attract greater investment to Nigeria’s non-oil sector.
He said, “recent report from the NBS indicates that economic recession is imminent; and coupled with rising unemployment and inflation rates, as well as foreign exchange and energy crisis, there is no doubt that survival and competitiveness of businesses in Nigeria is under severe threat.
“However, ACCI supports the recent removal of oil subsidy and the adoption of the managed float naira exchange system and believes that there is still hope for businesses in Nigeria if the 2016 budget can be expeditiously implemented with discipline.”
He said, “ACCI believed that the new policy on foreign exchange by the Central Bank of Nigeria (CBN) will promote economic growth in the country.
“The chamber supports the forex liberalisation policy as it will promote economic growth in Nigeria,’’ Ejinkeonye said.
According to him, the retention of Monetary Policy Rate (MPR), Cash Reserve Requirement (CRR) and Liquidity Ratio (LR) at 12 per cent, 22.5 per cent and 30 per cent, respectively would boost investments in stocks. Investors will prefer investment in stocks than money market instruments considering current inflation rate of 13.72 per cent.
The 0.36 per cent contraction in the Gross Domestic Product (GDP) in the first quarter of 2016, saying the second quarter might be worse.
The second quarter is also projected to be worse off, then recession is imminent by definition as negative economic growth for two consecutive quarters.