Economy
LCCI Tasks FG to Adopt Prudent Fiscal Measures, Pro-Investment Tax Policy
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the Nigerian government to adopt prudent fiscal policy measures and investment-friendly tax policies that work in tandem with the efforts of the Central Bank of Nigeria (CBN) to tame inflation.
The President of LCCI, Mr Gabriel Idahosa, said this at the Chamber’s first quarter of 2024 news conference on Thursday in Lagos, as he warned that as headline inflation continued its upward trend, it was telling on the ability of businesses to operate in the country.
He said in the last quarter of 2023, inflation notched higher to 28.92 per cent in December 2023, compared to 26.72 per cent recorded in September 2023,
Mr Idahosa also made a case for the government to strengthen its support to critical sectors like agriculture, road infrastructure, power, energy, and other key sectors because increasing the monetary policy rate has proven to be insufficient in taming inflation.
Last year, the CBN increased interest rates by more than 700 basis points to 18.75 per cent.
Citing the report from the National Bureau of Statistics (NBS), he noted that the inflationary pressures were primarily attributed to food and non-alcoholic beverages; housing, water, electricity, gas, and other fuel; clothing and footwear; transport, furnishing, household equipment, and maintenance.
He, however, projected that should the government be able to address the main drivers of inflation including food and transportation in 2024, projecting that the transportation component of inflation was likely to come down.
“This is because we can see the efforts being made to put buses on the road that are more gas or electric. For instance, Borno now has a large fleet of these vehicles and some companies in Nigeria are embracing producing gas-powered buses.
“Should this trend from now month by month continue, there would be a decrease in the cost of public transportation.
“Given the fact that Dangote has started refining fuel, we do not expect to see a dramatic reduction in the price of oil but we expect some reduction as we won’t spend dollars taking crude out or bringing it back.
“What that means is that sometime in the year, you won’t see a further dramatic rise in inflation,” he said.
Mr Idahosa said that the global economy in 2023 proved more resilient than expected in the face of significant monetary tightening, continuing policy uncertainties, multiple shocks from conflicts, and climate change.
He, however, noted that domestically, Gross Domestic Product (GDP) reports in 2023 showed quarterly growth that indicated a weak and fragile economy.
The LCCI president projected that in emerging markets and developing economies, growth was projected to remain steady at about 3.9 per cent in 2024.
He, however, stated that growth was expected to remain divergent in the region due to an array of global and domestic currents.
Mr Idahosa recommended that the federal government urgently address the structure of the power sector particularly, with a focus on the transmission segment.
This, he said, was needed to attract private sector investment into electricity transmission to bring in relevant financial, technical, and management capacity.
“The Federal Government needs to step up efforts to address the security challenges that have negatively affected investment inflows and improve the security measures adopted in tackling the menace of oil theft and vandalism.
“On agriculture sector growth, we urge the federal government to improve security and intensify the implementation of the national agricultural extension policy with a focus on improved and relevant agricultural technologies.
“The cost of logistics has gone up due to the poor state of our roads and the inadequate connectivity amongst farms, factories, and markets.
“The LCCI commends the Federal Government for the recent effort to attract private investment into the infrastructure sector. We also expect improved implementation of the capital funding allocated to infrastructures in the 2024 budget.
“While the CBN embarks on monetary tightening to tame inflation, it should ensure that targeted concessionary credit to the private sector is sustained for Micro, Small and Medium Enterprises (MSME),” he said.
By Dipo Olowookere
The Nigerian equity market showed no signs of slowing down, as it further appreciated by 1.30 per cent on Friday on the back of sustained buying pressure.
Unlike the preceding sessions, investor sentiment was bullish yesterday after the Nigerian Exchange (NGX) Limited ended with 43 price gainers and 26 price losers, implying a positive market breadth index, the first this week.
UPDC gained 10.00 per cent to close at N4.40, Academy Press also appreciated by 10.00 per cent to quote at N7.70, Haldane McCall improved by 9.97 per cent to N3.97, Zichis soared by 9.94 per cent to N15.60, and Wema Bank added 9.84 per cent to settle at N31.25.
Conversely, Meyer lost 9.92 per cent to sell for N16.80, Trans-Nationwide Express also crashed by 9.92 per cent to end at N7.90, C&I Leasing slipped by 8.53 per cent to N5.90, Omatek dipped by 7.34 per cent to N2.02, and eTranzact decreased by 5.28 per cent to N17.05.
When the bourse closed its doors to business, the All-Share Index (ASI) rose by 2,884.81 points to 225,722.49 points from 222,837.68 points, and the market capitalisation grew by N1.858 trillion to N145.335 trillion from N143.477 trillion.
A look at the activity chart showed that market participants transacted 627.6 million shares worth N44.5 billion in 55,232 deals during the trading day compared with the 667.9 million shares valued at N38.1 billion traded in 53,062 deals a day earlier.
This indicated that the volume of transactions went down by 6.03 per cent, the value of trades went up by 16.80 per cent, and the number of deals jumped by 4.09 per cent.
Access Holdings closed the session as investors’ toast, with a turnover of 75.6 million units worth N2.4 billion. UBA transacted 43.1 million units valued at N2.3 billion, Wema Bank exchanged 41.5 million units for N1.3 billion, Zenith Bank traded 38.4 million units valued at N5.2 billion, and Universal Insurance sold 29.5 million units for N35.9 million.
By Aduragbemi Omiyale
Mr Taiwo Oyedele has set some goals he intends to achieve as Nigeria’s Minister of Finance and Coordinating Minister of the Economy.
While taking over from his predecessor, Mr Wale Edun, on Thursday, the tax expert assured that he has no plans to overturn some of the reforms already put in place by the former occupier of the seat.
In a message on Friday, he emphasised that, “Our immediate task is to consolidate these gains, deepen ongoing reforms, and ensure they translate into tangible benefits for all Nigerians.”
He promised to ensure fiscal discipline by embracing transparent and prudent management of public resources, while also harmonising revenue administration, broadening the tax base, reducing the burden on the vulnerable population, and supporting economic growth.
Mr Oyedele further said his other strategic priorities include creating a predictable and investor-friendly environment anchored on policy coherence, consistency, and clarity; and aligning efforts across all tiers and institutions to maximise policy impact.
He also said efforts would be made to deepen collaboration with the private sector and other key stakeholders for data-driven policy design, co-implementation, and feedback for continuous improvement.
According to him, “Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results.”
“I look forward to working with colleagues across government, the private sector, and all Nigerians as we move from reform to result, accelerate growth and build a more stable, inclusive, and prosperous economy,” he stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further appreciated by 0.23 per cent on Thursday, April 23, with the Unlisted Security Index (NSI) adding 8.99 points to close at 3,969.96 points against the previous day’s 3,968 points.
The rise in the share price of Central Securities Clearing System (CSCS) Plc by N2.86 to N69.34 per unit from N66.48 per unit raised the market capitalisation of the NASD bourse by N5.38 billion to N2.380 trillion from N2.375 trillion.
Yesterday, there were two price losers, led by Food Concepts Plc, which lost 29 Kobo to sell at N2.65 per share versus N2.94 per share, while UBN Property Plc dipped by 22 Kobo to N2.03 per unit from N2.25 per unit.
During the session, the volume of securities traded declined by 97.9 per cent to 451,522 units from 21.5 million units on Wednesday, the value of securities depreciated by 52.32 per cent to N23.6 million from N49.5 million, and the number of deals depreciated by 3.6 per cent to 27 deals from 28 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.5 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
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