Dr. Chinyere Almona, president of the Lagos Chamber of Commerce and Industry (LCCI), has identified discrepancies between the 2024–2026 Medium-Term Expenditure Framework (MTEF) and the federal government’s goal of building a $1 trillion economy in the next six years.
According to the head of LCCI, the macroeconomic forecasts in the MTEF indicate that the economy will expand by 3.76 percent, 4.22 percent, and 4.78 percent in 2024, 2025, and 2026, respectively. However, the projected growth rates are not ideal for reaching a $1 trillion GDP by 2029, which would require an average growth rate of 21% over the following six years.
“Over the years, the Chamber has consistently expressed concerns about the implications of skyrocketing inflation, high-interest rates, and unstable exchange rates on businesses and households. We are aware of the enormous challenges and the uphill task before the Central Bank of Nigeria (CBN) in ensuring macroeconomic stability and restoring investors’ confidence,” she said.
Almona praised the CBN Governor’s intellectual humility in acknowledging the mistakes made in the past, especially with regard to corporate governance shortcomings, the CBN’s diminished institutional autonomy, deviating from the Bank’s core mission, the unconventional use of monetary tools, and the bank’s entry into fiscal activity disguised as development finance, among other areas. However, he challenged the current CBN team to uphold professionalism and integrity and win back the public’s trust.
She also complimented the CBN Governor on his outstanding performance at the 60th anniversary celebration and the CIBN’s Annual Bankers’; Dinner.
“With regard to bank recapitalization, we applaud the CBN’s plan to review the minimum capital base of banks because of the persistent devaluation of the Naira, which has reduced bank capital bases, drawn large investment into banks, and enhanced their ability to supply the necessary support for the economy. To prevent “Too big to fail” banks, we advise the CBN to tighten its oversight over banks.”
She continued by saying that the CBN should make sure there is transparency and cooperation between the monetary and fiscal authorities as well as an effective means of communicating major changes in policy direction, considering the delicate nature of monetary policy and price stability.
She urged the central bank to be dedicated to advancing integrity, good corporate governance, and the highest ethical standards. She recommended that the CBN adopt the appropriate policy mix to effectively control high inflation and ensure the stability of the exchange rate to support growth and job creation.