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LCCI seeks support for strategic industries

Lagos Chamber of Commerce & Industry (LCCI) has urged the Federal Government to provide special support mechanisms to strategic companies and industries that play critical roles in achieving inclusive economic growth.

In a statement, it noted that a major improvement recorded in Nigeria’s economy could be attributed to the game-changing interventions of key players in the private sector.

Its Director-General, Dr Chinyere Almona, said as Nigeria strives to stabilize prices, boost foreign exchange (forex) inflows, and attract Foreign Direct Investments (FDIs), it is imperative to recognize the role that certain companies play in driving growth, fostering innovation, and creating employment opportunities.

These strategic companies according to her often serve as the backbone of the economy, contributing significantly to its stability and resilience in key sectors such as manufacturing, agriculture, technology, and infrastructure,

The LCCI chief acknowledged the significant impact that Dangote Refinery is beginning to make on the economy, particularly in achieving national self-sufficiency in the production of diesel and aviation fuel. She argued for the 650,000 barrels per day refinery, a project of monumental scale that has started to fulfill its promise of addressing critical issues in the energy sector.

She said: "It was reported that with 100 million litres of diesel pumped into the market last week, the Dangote Refinery helped crash the price of diesel from about N1,800 to N1,225 per litre. With another tranche of supply in the coming days, the price of diesel is expected to drop to a low of about N1,000 per litre"

"If the refinery commences the production of Premium Motor Spirit (PMS) next month, petrol prices are also expected to dip, creating a great relief on cost of energy across all sectors of the economy."

According to her, the LCCI recognizes the refinery's contribution to enhancing energy security and reducing the country's reliance on imported fuel. The availability of locally produced diesel signifies a significant step towards achieving self-sufficiency in energy production, ultimately bolstering Nigeria's economic resilience, she stated.

Almona also noted that another game-changer intervention came from the commencement of international flights to the United Kingdom by  Air Peace.

According to her, this has become a delight to Nigerian travellers as this has forced foreign airlines to crash their prices by about 60 per cent in response to the cheaper rates by Air Peace.

"We need more support for local companies to play in sectors that have hitherto been monopolized by foreign companies. More local airlines covering more international routes means more aviation supply chain-related jobs, more foreign currency savings and earnings, and more reduction in the prices of international flight tickets in Nigeria," she said.

She sought optimal utilization of all our Bilateral Air Services Agreements, adding that it has the capacity to create a sustainable source of foreign currency savings and earnings for our country.

Furthermore, she stated that these companies, notwithstanding their strategic importance, are not immune to the adverse impacts of economic downturns, market uncertainties, and global disruptions. She lamented that the ongoing challenges, exacerbated by the rising cost of doing business and other socio-economic factors like insecurity, have intensified the need for targeted interventions and support from the government. She called on the Federal Government to implement measures aimed at providing special support to these strategic companies.

She said support should not be limited to concessional credit and low-interest loan facilitation, grants, or waivers to eligible companies to facilitate their operational continuity, investment in infrastructure, and technological advancement.

Others she said are creating conducive policy environment by improving policies and regulatory frameworks that incentivize innovation, entrepreneurship, and long-term investment.

She also sought enhancement in international trade potential by facilitating market access and trade opportunities both domestically and internationally, enabling companies to expand their reach and tap into new growth markets and finally the funding of innovative research and development by allocating resources towards initiatives aimed at promoting product diversification and value addition across strategic sectors.