Macroeconomic  stability crucial for increased investment -LCCI

By Merit Ibe

The Lagos Chamber of Commerce and Industry (LCCI) has emphasised the need for macro economic stability for increased investment in the country.

President of the chamber made the statement yesterday, at the International Business Conference, organised by the chamber, in collaboration with the Federal Ministry of Industry Trade and investment and the Ministry of Foreign Affairs, which also had in attendance members of the international community and investors.

Citing the National Bureau of Statistics (NBS) report that the economy grew by 2.52 percent in the second quarter of 2023, a slight improvement compared to 2.31percent in the first quarter, he noted that investors must first have confidence in the long term stability in the economy before investing.

The LCCI boss noted that investors need the assurance that “public  finance are under control, investment will not be lost due to inflationary spikes and neither uncertainty nor excessive hike in interest rate will suddenly not cripple the business.”

The president said therefore the first requirement for boosting investment and promoting sustainable growth is a continuous political commitment to responsible fiscal policy and control of inflation.

He said  the government has demonstrated its intention to support the growth and stability of the manufacturing sector and small businesses.

Olawale-Cole noted that another important element in the investment decision is the ease of doing business. “Over time,  Nigeria’s rank in terms of the cost of starting business dealing with license and enforcing contracts has substantially improved. Improving regulatory standards and lowering barriers to entry into the market would encourage investment.

“It is also important to have a stable and predictable legal framework. Since many investments only pay off over the long term, it can be costly to invest if the rules of the game are changed frequently. Contracts and well designed dispute resolution procedure are likely to be especially crucial.”

He applauded the present administration, which he said  has started on the right path to improve the country investment climate,” however, it is important that these policies are sustained and effectively communicated to the public and businesses community.

On his part, Dr John Odeyemi, chairman of the conference and Board of Trustees, called for the support of all stakeholders to boost the economy through investment. “Especially at this critical time in our country, we need to work as one family to achieve our ultimate goal.”

As you are aware, turning this optimism into concrete outcomes needs everyone’s support. Especially at this critical time in our country, we need to work as one family to achieve our ultimate goal.