25th October, 2016
The Lagos Chamber of Commerce and Industry (LCCI) says synergy between fiscal and monetary policies will stimulate investment in the country.
Mr Muda Yusuf, the Director-General of LCCI, in Lagos said that harmonization of policies would regain investors’ confidence.
According to him, confidence can be swiftly lost, but difficult to regain without pragmatic efforts geared toward addressing the causal issues.
Yusuf said that it was imperative for the Central Bank of Nigeria (CBN) to evolve a low-interest rate regime to actualize the desired growth projected by the fiscal authority.
“The country cannot stimulate activities of the real sector with high-interest rate.
“High-interest rate reduces the competitiveness of products and as well drives the cost of production up.
“For the real sector to drive the economy out of recession and promote job opportunities for our teeming youths, interest rate definitely needs to be reviewed.
“We need a coordinated monetary and fiscal system that is stable and at the same time responsive to the needs of the economy.
“Presently, many businesses are groaning under the burden of debts accumulated from high interest.
“Government should respond with policies that will reduce dearth of businesses,” Yusuf said.
He said that investors were reluctant in committing their resources to the economy based on observed discrepancies in the policies.
Yusuf said that appropriate mix of both policies would enhance sustainable economic growth, wealth creation, employment and increased foreign direct investment.