LCCI Urges FG to Reorganize CBN, NNPCL for Improved Transparency

Stakeholders in Nigeria’s real sector have called for urgent reorganization in the Central Bank of Nigeria (CBN) and NNPC Limited for improved transparency and accountability.

The stakeholders made the call in a communiqué issued at the end of the 2023 Mid-Year Economic Review and Outlook jointly organized by Lagos Chamber of Commerce and Industry, LCCI and Cordros Capital to highlight opportunities for business growth and sustainability in Nigeria and the global market.

The communiqué, made available to Newsmen by the Director General, LCCI, Dr. Chinyere Almona, yesterday, advised the Government to consider the urgent need for an all-encompassing economic and fiscal plan, a full or partial divestment of state-owned real estate, improved transport sector, and energy assets as post-election priorities.

It also noted that The government must focus more on asset-based and equity offerings to improve revenue.

“Institutional reorganization is urgently needed in CBN and NNPCL to improve transparency and accountability.

The Communique further noted that the operating environment of NNPCL is somewhat opaque, which is anti-competition.

It also disclosed that the oil sector will attract the desired investment if the government liberalises fuel import licences and other vital activities in the midstream and downstream sectors.

It advised that the Government should unlock revenue from assets by complementing tax with rent, fees, dividends, and capital gains as economies that optimise revenue through equities have recently offset the loss from declining commodity prices.

For The new administration, the LCCI advised to borrow better to reduce debt costs by issuing a more asset-linked debt than IOUs. The non-interest-bearing debt opportunities should be explored as emerging markets tilt towards project equity financing.

The chamber also advised that Bureaux de Change (BDCs) should not be referred to as parallel or unofficial markets, as they are officially licensed to trade.

In his opening remarks, LCCI President, Dr. Michael Olawale-Cole, said that the half-yearly event reviews vital policy developments and macroeconomic performance.

It also discusses the outlook and expectations for the next half, focusing on risks and opportunities