The Lagos Chamber of Commerce and Industry has advised the Central Bank of Nigeria to sustain its development finance initiatives in 2022.
He advised the CBN to initiate gradual transition to a unified exchange rate regime, saying factors such as oil price and production, GDP growth, inflation rate, forex trends, private investment inflows, credit to the private sector, and domestic interest rates would be expected to influence monetary policy direction in the short to medium-term.
“To consolidate on the interventions earlier initiated, the CBN needs to roll out more friendly supply-side policies to boost liquidity in the market. This would help bolster investor confidence and attract foreign investment inflows into the economy. “The Chamber is concerned with our debt costs. We need to re-assess our debt sources to borrow at low rates or access more zero-interest loans like the Sukuk.”
“With projected borrowings of N4.893 trillion, N4.750 trillion, and N5.356 trillion in 2022, 2023, and 2024 respectively, debt sustainability concerns will remain elevated.” He suggested that this could be achieved by addressing the structural bottlenecks and regulatory constraints contributing to the high cost of doing business.