Nigeria: FG Should Reorganise CBN, NNPCL for Improved Transparency - LCCI

23 August 2023

Stakeholders in Nigeria's real sector have called for urgent reorganisation 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 organised 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 Vanguard by the Director General, LCCI, Dr. Chinyere Almona, yesterday, stated: "Government should consider the urgent need for an all-encompassing economic and fiscal plan, full/partial divestment of state-owned real estate, improved transport sector, and energy assets as post-election priorities.

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

"Institutional reorganisation is urgently needed in CBN and NNPCL to improve transparency and accountability.

"The operating environment of NNPCL is somewhat opaque, which is anti-competition. The oil sector will attract the desired investment if the government liberalises fuel import licences and other vital activities in the midstream and downstream.

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

"The new administration is 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.

"Bureaux de Change (BDCs) should not be referred to as parallel or unofficial markets, because 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.

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