The Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over the worsening state of insecurity and its multidimensional effect on inflation and poverty.
The LCCI President, Mrs Toki Mabogunje, in a statement on the security situation in the country, said the crisis had crippled many private and public investments across the nation, and investors were counting their losses.
She stated that the insecurity in the country has made the movement of goods, services, and persons across the country difficult, with multiplier effect on agriculture, agro-allied services, trade and commerce, especially in affected areas.
With further inflationary pressure on food prices that has exacerbated the poverty conditions in the country, Mabogunje added that many households have lost their means of livelihoods, while some have been displaced.
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She added that the crisis projects the Nigerian economy as an unsafe investment destination, and if unaddressed, would thwart government’s efforts in encouraging private investment inflows into the economy.
“We note that investors’ confidence had been weak before the covid-19 outbreak, and many investors still see the Nigerian market as a risky venture despite the oil price recovery, vaccination dissemination and growth recovery. We believe confidence will remain weak in the short-term if the situation does not abate,” LCCI president said.
“The worsening security situation also impacts the fiscal position of government by making policymakers incur unplanned security-related expenditure at the detriment of infrastructural development expenditure. This could worsen 2021 actual fiscal deficit levels amid fragility in revenue growth from oil and non-oil sources”, she added.
She therefore urged the executive arm of government to liaise with the legislative arm to take security out of the exclusive list of the Nigerian constitution and include it in the concurrent list.
This move, according to her, will enable sub-nationals to play more active roles in the restoration of peace in or country through the creation of a security machinery and architecture that would be controlled by them, subject of course to certain guidelines, especially regarding the rules of engagement.
She also emphasised the need to ensure a concrete and sustainable means of reducing youth unemployment rate through youth employment schemes and programmes, adding that there is a strong correlation between unemployment and criminality.
