LCCI predicts positive economic growth of 4% in Q4

By Merit Ibe

The Lagos Chamber of Commerce and Industry (LCCI) has forecasted that the economy will end the current year in a positive growth territory within the region of 3 and 4 percent.

To achieve faster recovery, the chamber suggested that it requires the fiscal and monetary sides of the economy to promote growth-enhancing and confidence-building policies that would encourage private capital flows to the economy.

President of the chamber, Michael Olawale-Cole made the remarks at the 134th annual general meeting of the chamber yesterday, where he presented the annual report of the chamber for year 2022.

In his review of the economic and business environment for the year 2022,the Olawale-Cole refered to the latest q3 GDP figure which grew by 2.25 per cent (y-o-y) in real terms, saying it reflected the slowdown in growth attributed to the impacts of the recession and the challenging economic conditions.

“It is expected that the annual GDP growth will close on a positive note for 2022.

” However, it should be noted that emerging shocks, threats, and risks have created fears of slowing growth and even recession in the coming quarters going into the new year 2023.”

He opined that the Fiscal and monetary authorities must develop a medium-term growth plan anchored on boosting local production, supporting ease of doing business, attracting private investment, developing physical and soft infrastructure, business-friendly regulatory policies, economic diversification, and employment generation among others.

“We believe the economy will end the current year 2022 in a positive growth territory within the region of 3 percent and 4 percent.

“The real solution to our forex scarcity crises is to boost production and expand exports. We must also resolve the crises around oil production as 80% of forex earnings come from the oil and gas exports. The naira has recorded a continuous fall from #415/usd early in the first quarter to about #443/usd as at mid-November.

“With the worsening security challenges in some parts of the country, forex scarcity, and high energy costs, growth may shrink as production bases come under siege, and supply chains disrupted leading to scarcity of goods in the markets. With worsening security perception about the country, and the coming of a new government, foreign investors are not interested in bringing in FDIs to Nigeria at this time.”

The LCCI boss expressed joy the chamber had an eventful year in 2022, strengthened its partnerships with public sector institutions and extended its presence on international frontiers..