NACCIMA: Hyperinflation, naira devaluation weigh on Nigeria

The Nigerian economy is facing significant challenges as hyperinflation, naira devaluation, and high borrowing costs continue to weigh down businesses across the country. The National President of the Nigerian Association of Chamber of Commerce, Industry, Mines & Agriculture, Dele Oye, has highlighted the detrimental impact of these factors on businesses' ability to operate and expand. Oye emphasized the need for the government to engage more with the private sector, seek their insights, and address their concerns in the policy-making process to drive sustainable economic growth. The recent data from the National Bureau of Statistics (NBS) indicating a GDP growth rate of 3.46% and a dip in the unemployment rate to 4.6% has raised questions about the accuracy of these numbers in reflecting the ground realities. Oye criticized the disconnect between the reported growth figures and the challenging business environment experienced by industries. He pointed out that while some sectors like banking may show profits, many industries are struggling due to naira depreciation and lack of funding. Oye called for a more collaborative approach between the government and private sector to ensure policies are responsive to the needs of businesses and promote industrial growth. The lack of stakeholder engagement in policy formulation has led to inconsistencies and ineffective economic measures that have worsened inflation and poverty levels in the country. Oye underscored the importance of involving private sector representatives in decision-making processes to provide valuable insights and prevent policy missteps. He urged the government to prioritize consultations with industry experts to drive more impactful policies and foster economic development. The Central Bank of Nigeria's policies came under scrutiny during the interview, with Oye questioning the effectiveness of current monetary strategies in stabilizing the economy. Oye criticized the high interest rates imposed by the central bank, noting that they hinder business growth and deter investment. He highlighted the need for more targeted approaches to managing the naira and allocating foreign exchange resources to support local industries effectively. Oye emphasized that the key to economic recovery lies in addressing fundamental issues like naira stability and investment incentives for businesses. Despite the optimism expressed by the Central Bank governor regarding future economic prospects, Oye remained skeptical about the potential for significant growth without substantial policy changes. He called for a more inclusive and collaborative approach to economic governance that prioritizes industry input and expertise in decision-making. Oye's insights shed light on the urgent need for coordinated efforts between the government and private sector to revitalize Nigeria's economy and mitigate the adverse effects of inflation and currency devaluation.