April 1, 2023



Telecoms, manufacturing, others to drive Nigeria’s financial development in 2023 – LCCI

The Lagos Chamber of Commerce and Trade (LCCI), says that sectors like manufacturing, agriculture, transport, telecommunications, and commerce will probably be main drivers of financial development in 2023.

In an announcement signed by Director-Basic of LCCI, Chinyere Almona titled ‘the LCCI new 12 months assertion on the economic system 2023,’ the physique stated the listed sectors would ship a gross home product (GDP) development fee above 3 p.c in 2023, increased than the two p.c recorded in 2022.

“In 2023, we anticipate to see development in sectors like manufacturing, agriculture, transport, telecommunications, and commerce. With Nigeria having the third largest subscriber base in Africa (after South Africa and Egypt), the telecoms sub-sector is predicted to document development above the ten.1 p.c achieved within the third quarter of 2022 pushed by the rising deployment of fee service banks (PSB) by the telcos, improve in subscribers utilizing extra telcos’ companies, and the anticipated innovation coming with the launch of the 5G expertise,” the assertion reads.

“In 2023, authorities’s intervention via focused financing assist to the agro sector can increase agricultural manufacturing, create jobs, and decrease the spiking meals inflation that has been accountable primarily for the rising headline inflation all via 2022.

“The manufacturing sector which suffered headwinds reminiscent of shortage of foreign exchange for import of inputs, weakened client demand on account of weak buying energy, excessive vitality value, logistical challenges, coverage uncertainties, and harsh regulatory surroundings in 2022, could doubtless document a development within the sector away from the adverse development of -1.9 p.c it recorded as at third quarter of 2022.

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LCCI, nevertheless, acknowledged that the anticipated development would solely occur if the federal government would deal with present points like rising inflation, shortage of foreign exchange, excessive vitality prices, high-interest charges, and logistics challenges on account of insecurity in most components of the nation.

It stated the charges rose from 11.5 p.c in January and peaked at 16.5 p.c in November 2022.

“That is anticipated to rise additional through the financial coverage committee assembly in January to 17 p.c to curb the persistent inflation and stop capital flight,” it stated.

“The chamber had earlier really useful that fee hikes alone wouldn’t curb inflation besides the actual components like meals provide disruptions, excessive vitality value, shortage of foreign exchange, and the safety challenges round agricultural manufacturing areas which have fueled low manufacturing and excessive logistics value.