The Centre for the Promotion of Private Enterprise and the Lagos Chamber of Commerce and Industry have identified falling productivity as a factor limiting the country’s economic progress.
The Punch reported that this was declared by the economic think-tank and commerce chamber in response to the National Bureau of Statistics’ Gross Domestic Product data for the second quarter of the year.
The CPPE stated in a statement that the negative effects of recent economic reforms were disproportionately worse than projected.
According to the statement, which was signed by the CEO, the economy is likely to recover in the medium to long term as current distortions in the economy are remedied.
“The structure of the economy continued to reflect its vulnerabilities, particularly the challenges of productivity and competitiveness of the real economy,” according to the statement.
“Q2 GDP growth fell short of the sub-Sahara projected average of 3.1% for 2023, but was higher than projections for the Eurozone of 1% and the United States of 1.8%.”
Yusuf went on to say that industries including oil refining, livestock, crude petroleum and gas, and textiles are all in decline due to macroeconomic, structural, or policy concerns.
“Growth in these sectors remained subdued by heightened inflationary pressures, exchange rate volatility, spiking energy costs, insecurity, and the political economy of the oil and gas sector,” he added.
In an exclusive interview with The Punch, the Deputy President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, blamed recent economic changes for the country’s real-economy productivity decrease.
He went on to say that the scenario had contributed to the country’s currency issue, which had made life tough for the business community.
“It’s unsurprising that trade isn’t where it should be,” Idahosa remarked. These economic reforms have pushed the economy in a certain direction. The value of every currency is equal to its exports minus its imports. So, if we can increase exports, the tendency will eventually reverse.”
