Government Should Hands-off All Business Enterprises - - 30 June 2000
The Federal Government has been advised to continue with its
policy of deregulation and liberalisation of the economy instead of
competing with the private sector in business transactions.
Director General of Lagos Chamber of Commerce ad Industry (LCCI), Mr.
Adekunle Olumide in an interview with The Post Express maintained that
business is not within the province of government but belongs in the
private sector as demonstrated in advanced countries that have made
remarkable progress, in free enterprise and private entrepreneurship.
Government he said should not relent on its policy of privatisation
as a lot of funds could be freed, funds that would be realised from
sales of public enterprises could be utilised in education, and to
improve the health sector.
Privatisation exercise Olumide said, must be pursued to its logical
conclusion and the playing field must be level, and there must be
transparency, accountability so that both local and foreign investors
should benefit from the exercise, adding that there is need for joint
venture investors in the real sector.
Nigerians, he pointed out, expect relative stability to be maintained
in the micro economy saying we noticed that although interest rate was
stable for most part of the year, there are signs that it is going up,
this will discourage investment and eventually lead to inflation,
“Interest rate should be low so as to encourage investment particularly
in the real sector,” he added.
The LCCI Director-General further remarked that the low level of
domestic savings and resources within the economy is not optimal for the
required development hence there has to be investible funds from abroad
and the steps already taken by the President in his numerous diplomatic
trips to many of our creditor countries have had a salutory impact and
should be continued.
He noted that a lot of foreign companies have indicated interest in
investing in Nigeria, with many of them coming into the country on trade
missions to Chambers of Commerce and Industry including the Lagos
Chamber of Commerce and Industry. According to him, the momentum in that
area should continue.
The Nigerian Investment Promotion Commission he indicated, is doing a
lot in this direction, says that with liberalisation in foreign exchange
transactions, all these will facilitate the inflow of foreign funds and
out flows of dividends, and other payment that could legitimately be
repatriated out of this country, he remarked.
He further stated that the organised private sector (OPS) is looking
forward to the implementation of the year 2000 budget particularly in
the areas of domestic debt settlement and Poverty Alleviation Programme.