The Lagos Chamber of Commerce and Industry (LCCI), has tasked the federal government to implement focused interventions in the industrial, agricultural and oil and gas sectors in order to sustain the growth momentum.
LCCI was reacting to the National Bureau of Statistics (NBS’) report which showed Nigeria’s Gross Domestic Product (GDP) in the second quarter of 2024 recorded a 3.19 per cent year-on-year growth in real terms.
Dr. Chinyere Almona, director general, LCCI, stated this in a public statement, titled, “LCCI Statement on Nigeria’s 2024 Second Quarter Economic Growth Indicator and on Sustaining Economic Growth,” where the chamber urged the government to implement the Petroleum Industry Act (PIA) to the letter.
The 3.19 per cent GDP growth in the second quarter 2024 surpassed both the 2.51 per cent growth in the second quarter of 2023 and the 2.98 per cent recorded in the first quarter of 2024.
The breakdown showed that the services sector posted a remarkable 3.79 per cent growth and contributed 58.76 per cent to the aggregate GDP; the industrial sector also showed a significant turnaround with a 3.53 per cent growth, recovering from the negative growth of -1.94 per cent recorded in Q2 2023; the agriculture sector grew by 1.41 per cent, slightly lower than the 1.50 per cent recorded in second quarter 2023; the oil sector recorded a substantial 10.15 per cent growth in real terms, a stark improvement from the -13.43 per cent contraction seen in second quarter 2023, but its quarter-on-quarter performance dipped by -10.51 per cent.
The chamber said that while the overall GDP growth was commendable, “It is imperative that the government remains proactive in addressing key areas to sustain and enhance economic growth in the remaining months of 2024.”
The LCCI, therefore, recommended improvement in the power sector to sustain the growth momentum in the industrial sector.
Almona stated, “We urge the government to maintain the reforms and initiatives in the power sector to boost the electricity supply.
“It is well noted that the total number of electricity meters provided newly to consumers increased by 3.3 per cent on a month-on-month basis to 6.1 million in July 2024 from 5.9 million recorded in June, but the registered unmetered users of about 13.1 million as of July points to the need for more efforts.”
The chamber also observed that the agriculture sector’s growth remained modest in the quarter under review but stated that harnessing its full potential and driving more agricultural production would require sustaining “interventions introduced in the past months, such as the import waivers to agriculture inputs and improving the security situation around our crop production sites.
“Additionally, improving rural infrastructure to reduce post-harvest losses and enhance market access is critical.”
Despite the oil sector’s impressive year-on-year growth, LCCI said, “Recent happenings in the sector indicate the need for more regulatory prowess in dealing with issues like divestments, crude supply to local refineries, resurfacing oil theft, and pipeline vandalism.
“The plan to hand over the Kaduna and Warri refineries to private sector operators and the eventual refining happening in the Port Harcourt Refinery is critical to the performance of this sector.
“To resolve the many regulatory matters, we urge the government to implement the Petroleum Industry Act (PIA) letters, which have the legal instruments to regulate the oil and gas sector.”
The chamber also stated that the trade sector had performed very well in the past months and grew by +0.7 per cent year-on-year in Q2 ’24 against the +1.2 per cent it recorded in the preceding quarter.
It called for more investments in port infrastructure to boost international trade by stimulating export trade, which would ensure that the depreciation of the naira against significant currencies positively impacted the country’s balance of trade account.
The LCCI said, “The services sector remains the backbone of Nigeria’s GDP, particularly information and communication and financial services.
“Continued support for digital transformation, financial inclusion, and fintech innovations will be vital.
“Regulatory frameworks that promote fair competition and consumer protection should be strengthened to sustain the sector’s growth.”
Almona said LCCI acknowledged the government’s efforts to steer the economy towards growth, amid global uncertainties.
“However, a sustained focus on the highlighted areas will be critical to stabilising the economy for growth and development,” she said.
