LCCI Laments Industries’ Challenges

The Lagos Chamber of Commerce and Industry (LCCI) yesterday decried the increasing challenges facing industries in the country.

In a statement it issued in Lagos, LCCI said that many indigenous entrepreneurs could not harness opportunities in the economy in 2012 because of these challenges.

LCCI said that the high energy cost, security challenges, weak consumer demand, high cost of production and lack of access to credit were major problems that hindered investors in 2012.

It said that the power supply situation in the country improved slightly in the mid-year, but declined in the last quarter of 2012.

“High energy cost and electricity tariff have implications for productivity and profitability of investments.

“The security problems did not abate during the year. If anything, it has worsened.

“The economies of the affected states suffered setbacks following the closure of companies and the loss of jobs by many,” it said.

LCCI said that many entrepreneurs could not have access to funds because of the tight monetary policy stance of the Central Bank of Nigeria.

LCCI said that collateral being demanded by banks were beyond many investors.

It said that this had impeded access to credit, slowed down the tempo of economic activities and undermined intermediation role of banks in the financial system.

The chamber appealed to the Federal Government to address these challenges to enhance its economic transformation agenda in 2013.

“The government should ensure that SMEs and manufacturers get loans at single digit rates and eliminate the delay associated with loan processing.

“There is the urgent need to check the influx of fake and substandard goods into the Nigerian market.

“Government should swiftly and permanently fix the security problems in Nigeria,” LCCI said.

It said that the curriculum of tertiary institutions should be reviewed to bridge the wide gap between industrial skill requirements and output from Nigerian institutions.