THE Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture has decried the current state of the nation's economy, saying that it poses a lot of challenges to the business community.
This, it said, was responsible for the increase in the cost of doing business in Nigeria.
NACCIMA noted that activities recorded in the business environment so far had not translated into any significant positive impact on the real sector of the economy and the citizenry because of the unfriendly macro-economic conditions and unfavourable policies.
The President of the association, Dr. Herbert Ajayi, while addressing journalists in Lagos on Thursday on the state of the nation, listed the challenges as security, unfriendly operating environment and infrastructural constraints, particularly in the areas of power and energy, among others.
Ajayi added that though the business community was making a lot of impact, the recurrent threats had easily wiped out any gains of progress and recovery so far made.
He lamented the growing rate of inflation, which, he said had risen from 10.3 per cent in December 2011 to 11.3 per cent in September 2012.
The Gross Domestic Product growth rate, he said, had gone down from 7.40 per cent in December 2011 to 6.28 per cent at the end of the second quarter of 2012.
Ajayi also explained that capacity utilisation in the real sector (manufacturing production) currently hovered around 45 per cent, showing huge capacities.
He said all these portended a lot of danger to the country's economic growth.
He decried the challenges of electricity supply in the country, adding that this had resulted in the use of generators for businesses, thereby contributing to the high cost of production estimated at about 40 per cent.
He, therefore, urged government at all levels as well as business operators to constantly work out favourable policy framework, weigh the strengths and weaknesses of the country's economic environment in order to manage the macro-economic fundamentals for businesses to move in the right direction.
He said, "The current state of our nation continues to pose some challenges to the business community as the performance recorded so far has not translated to any significant positive impact on the real sector of the economy and the citizenry.
"While government continues to partner with the private sector and other stakeholders to find lasting solution to the current challenges facing the business environment, it has become imperative that both the immediate and the remote causes must be thoroughly addressed.
"We believe that these challenges facing us are not insurmountable if government and its agencies remain focused, committed and intensify on-going partnership efforts with the private sector and the citizens to move the country forward by making it a safe haven for investments."
