By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has proposed an extension of palliative measures for the key sectors in the county to minimise the impact of the coronavirus pandemic on the economy.
This was made known in a statement signed by LCCI’s Director-General, Mr Muda Yusuf, titled 2020 Post COVID-19 Agenda; Business and Economic Sustainability Propositions on Monday.
In the proposition, it was noted the suggested palliatives would help foster economic recovery in the affected sectors after the pandemic.
In the banking sector, the LCCI called for an engagement between the Bankers Committee, the Central Bank of Nigeria (CBN), and the business community to discuss the plan for businesses at this critical period.
“A good credit regime is critical to the sustainability and progress of an economy and the palliatives, announced by the CBN in response to this pandemic, are commendable. But there is the bigger issue of private sector indebtedness to the commercial banks.
“As at December 2019, banks credit claims on the private sector, stood at N15.2 trillion.
“The way this exposure is managed will be crucial to the realisation of the economic and business continuity outcomes in the Nigerian economy,’’ he said.
Mr Yusuf listed opportunities for loan moratorium, restructuring of facilities, refinancing and interest rate concessions in light of the unprecedented downturn in the economy as necessary palliatives.
He urged that banks grant a one-year moratorium and six months interest rates concessions to customers on existing facilities, suggesting that to make this possible for commercial banks, there should be a review of the Cash Reserve Ratio (CRR) from the current level of 27 percent to 20 percent.
This would give room for banks to offer interest rate concession and a moratorium on loans to investors.
“These times call for sacrifice from all stakeholders in the economy – the banking community, the depositors, the government, the financial system regulators and the business community.
“We hope the deposit money banks would take a cue from the gesture of the central bank on the interest rate cut and moratorium granted on its intervention funds.’’
For the aviation sector, as palliatives, the LCCI Chief seeks support aimed at supplementing insurance premiums, which are dollar-denominated as cover were mostly underwritten abroad due to lack of local capacity.
He also appealed for support to pay for operational cost including international lease rental on grounded aircraft, aircraft maintenance due for C- Check and other routine maintenance that takes place, irrespective of lockdown.
Mr Yusuf also called for waiver of taxes and other regulatory levies/fees, one-year waivers on import duty for spare parts, commercial banks moratorium during the period of lockdown and six months thereafter.
Dipo Olowookere