Economy
LCCI Explains Reason For Nigeria’s Economic Woes
By Dipo Olowookere
The Lagos Chamber of Commerce and Industry (LCCI) has stated why Nigeria is presently going through economic challenges, saying it is due to lack of investors’ confidence.
Director General of LCCI, Muda Lawal, said at the weekend in Lagos that the inability of the Federal Government to regain the confidence of investors, both local and foreign, has resulted in the uncertainty in foreign exchange market.
“Regrettably, the instability and inconsistency in the foreign exchange management policy have been complicating matters.
“The economy has a major structural defect of being heavily import-dependent. This cannot be fixed in the short term.
“Therefore, the shocks arising from the collapse of oil price and the corresponding depreciation in exchange rate of the naira were inevitable. But the policy responses could make a whole lot of difference in the profundity of the impacts of these shocks on the economy and the citizens,” Mr Lawal said.
According to him, historically, autonomous supply of foreign exchange had been higher than the Central Bank of Nigeria (CBN) supply, adding that, “This has virtually dried up because of the collapse of investors’ confidence. Of course, the plunge in crude oil price was a major causal factor. But perhaps the bigger issue is the unstable and inconsistent foreign exchange policy which has continued to create uncertainty in the forex market, thus deepening the liquidity problems.
“For an economy that is in fragile mode and for an economy that is highly exchange rate sensitive, policy actions and pronouncements that could impact the market should be done with utmost caution and care.
“This is imperative to avoid unintended consequences which may hurt the economy in very profound ways. Such is the recent suspension of nine banks from the forex market. These are shocks that the economy can ill afford at this time.
“It is right to penalize banks for proven infractions, but this should be done in a way to minimize collateral effects on investors and the larger economy, given the high sensitivity of the economy to developments in the foreign exchange market.
“This is even more so at a time when the economy is grappling with a major confidence issue in the forex market. There should be more creative and less disruptive ways of imposing such sanctions.
“Many innocent investors and citizens are already bearing the brunt of this action given the unprecedented hike in naira exchange rate.
“Ongoing forex transactions in the affected banks have been stalled with serious consequences for investors,” he emphasized.
Mr Lawal stated further that, “The second major policy development that could pose a risk to the stability and transparency of the foreign exchange market is the recent policy on sectoral allocation of foreign exchange.
“The CBN circular did not indicate any Code to properly define what would qualify as raw materials and machineries. The first concern will be that of definition. The result of this will be discretionary interpretation by the banks as what qualifies as raw materials and machineries.
“The second major concern is the potential crowding out of other sectors in the forex market. Sectors outside the manufacturing sector account for over 85 per cent of the country’s GDP and jobs in the economy. They all have varying import contents in their operations.
“Therefore, if a minimum of 60 per cent of all forex allocation goes to manufacturing for raw materials and machineries; what happens to other sectors? Currently petroleum products imports are priority and could take another 25 per cent of foreign exchange.
“This implies that the rest of the sectors would settle for the balance of 15 per cent. This is clearly not a sustainable framework.”
Such policy tools, he said, include import tariffs, taxation and other incentives.
He said further that, “Above all, there is need to upscale infrastructure investments very urgently. These are the more effective ways to fix the structural problems of the economy than monetary policy.
“What is key for monetary authorities is to ensure that financial markets are efficient and transparent; and to ensure that there is discipline among players.
“This is the time to seek quick wins. One of the quick wins is to review current trade policy measures in order to reduce the pressure of cost on investors and citizens. The exchange rate depreciation has an inherent structural correction effects on the economy.
“It naturally rewards inward looking initiatives and resource based enterprises. It is too much of a shock on the economy to combine high import duty regimes with a weak and rapidly depreciating currency.
“Conversion of import values at current exchange rates for purposes of computation of import duty and other port charges have escalated costs beyond measure and had paralyzed many businesses. Ensuring a balance between the interests of investors, producers, consumers and the welfare of citizens is a strategic imperative at this time.”
By Modupe Gbadeyanka
The Katsina State government has offered additional N500 million to support women-owned businesses in the state as part of efforts to boost economic activities.
Governor Dikko Umaru Radda announced this at the Women of Influence and Investment Summit hosted by the Katsina Inner Wheel Development Initiative (KIWDI), in partnership with Access Bank Plc.
The event brought together women entrepreneurs, investors, policymakers, and development partners to advance women’s economic empowerment in the state.
The summit, themed Where Influence Meets Investment, focused on positioning women as key drivers of enterprise, leadership, and inclusive growth. It also highlighted the growing collaboration between Access Bank and the Katsina State Government on financial inclusion and SME development.
Mr Radda noted that investing in women was critical to building a productive and sustainable economy.
In her welcome address, the founder of KIWDI, Ms Amina Zayyana, said the summit was designed to connect women to opportunities, training, finance, and markets, stressing that when women-led businesses grow, families and communities benefit.
On her part, the Group Head of Women Banking at Access Bank, Mrs Nene Kunle-Ogunlusi, said the lender was proud to partner with Katsina State and KIWDI in advancing women’s economic participation.
“At Access Bank, we are committed to moving women from potential to prosperity. Through our Women Banking proposition and the ‘W’ Initiative, we provide access to finance, capacity building, and market linkages that help women start, stabilise, and scale their businesses,” she said.
She noted that the W Initiative, launched in 2014, is Access Bank’s flagship women- focused platform, designed to meet the real needs of women entrepreneurs and professionals across Nigeria and Africa.
“Our partnership with Katsina State goes beyond banking. It is about supporting economic empowerment, SME growth, and financial inclusion, especially for women,” she added.
Mrs Kunle-Ogunlusi noted that Access Bank was proud to participate not just as a financial institution, but as a long-term partner in women’s economic advancement across Nigeria and Africa.
“At Access Bank, we made a deliberate decision to change that, not with charity, but with strategy. Not with sympathy, but with solutions. The W Initiative, which was launched in 2014, is Access Bank’s flagship women-focused proposition, created to respond to the real needs of women,” she said.
The banker disclosed that through the W Initiative, the bank has disbursed over N314 billion in loans to women, supporting over 3.6 million female loan beneficiaries, and helping women-owned businesses start, stabilise, and scale up.
By Adedapo Adesanya
The House of Representatives Public Accounts Committee (PAC) has recommended zero allocation for the Standards Organisation of Nigeria (SON), the National Insurance Commission (NAICOM), and the Corporate Affairs Commission (CAC), among others, in the 2026 budget for allegedly failing to account for public funds appropriated to them.
The committee, at an investigative hearing, accused the affected ministries, departments and agencies (MDAs) of shunning invitations to respond to audit queries contained in the Auditor-General for the Federation’s annual reports for 2020, 2021 and 2022.
The affected MDAs include the Federal Housing Authority (FHA), the Federal Ministry of Housing and Urban Development, the Federal Ministry of Women Affairs and Social Development, the National Business and Technical Examinations Board (NABTEB), and the Nigerian Meteorological Agency (NiMet).
Others are Federal University of Gashua; Federal Polytechnic, Ede; Federal Polytechnic, Offa; Federal Medical Centre, Owerri; Federal Medical Centre, Makurdi; Federal Medical Centre, Bida; Federal Medical Centre, Birnin Kebbi; Federal Medical Centre, Katsina; Federal Government College, Kwali; Federal Government Boys’ College, Garki, Abuja; Federal Government College, Rubochi; Federal College of Land Resources Technology, Owerri; Council for the Regulation of Freight Forwarding in Nigeria; and the FCT Secondary Education Board.
The PAC chairman, Mr Bamidele Salam, while speaking on the decision of the committee to recommend a zero budget for the defaulting MDAs, stated that the National Assembly should not continue to appropriate public funds to institutions that disregard accountability mechanisms.
“Public funds are held in trust for the Nigerian people. Any agency that fails to account for previous allocations, refuses to submit audited accounts, or ignores legislative summons cannot, in good conscience, expect fresh budgetary provisions. Accountability is not optional; it is a constitutional obligation,” he said.
The panel maintained that its recommendation for a zero budget for the affected MDAs is aimed at restoring fiscal discipline and strengthening transparency across federal institutions and conforms with extant financial regulations and the oversight powers of the parliament.
By Adedapo Adesanya
The Securities and Exchange Commission (SEC) and the National Orientation Agency (NOA) have partnered to enlighten Nigerians on illegal investment schemes in Nigeria.
The director-general of SEC, Mr Emomotimi Agama, stated this during a meeting with his NOA counterpart, Mr Lanre Issa-Onilu, in Abuja on Thursday, according to a statement from SEC.
Mr Agama said the capital market is an available tool for national development, but beyond all that, there is a tendency for people to do the wrong things that will lead to the impoverishment of Nigerians.
According to him, these are not supposed to be, but many people fall victim due to a lack of knowledge. He stated that these schemes are springing up daily, and those involved are defrauding Nigerians, as people are always gullible because of the need to survive.
“As a management, we decided to move out to enlighten people; we cannot assume that people know, we need to go out for mass communication, hence this collaboration. It is only by co-operation that we can achieve the purpose of our existence,” he stated.
The SEC DG solicited the co-operation of the NOA to reach Nigerians because of its capacity and vast network of mass media, in a bid to ensure that the message reaches every nook and cranny of the country.
“This collaboration is important because it will go a long way in ensuring that Nigerians are no longer victims of these fraudulent schemes. We appreciate that you value this country, and we value the work that you do,” he added.
On his part, Mr Issa-Onilu commended the SEC for the capital market’s achievements in recent times, adding that the commission has not been celebrated enough.
“We commend you and thank you on behalf of the country, but most Nigerians are not aware of the opportunities in the capital market. An ignorant society will fall victim to many things that are avoidable. It is our responsibility to enlighten people to make the right decisions.
“We request that you provide information on what you do to enable us to propagate them. Our primary assignment is to serve all government institutions as the communications arm. We do a lot of enlightenment in places like the religious houses, motor parks, town halls, among others.”
Mr Issa-Onilu said the NOA engages in civic education to create the right values that will help most Nigerians be better citizens, saying that “many Nigerians are deficient in good behaviour. Both the Ponzi scheme promoters and those who patronise them are suffering from the wrong attitude and values.
“We have to encourage people to have the right attitude so they do not fall victim to Ponzi schemes. We have created a lot of platforms to interact with Nigerians.”
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