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The Lagos Chamber of Commerce and Industry(LCCI),has deplored the spate of insecurity in Nigeria,saying it will worsen investors’ confidence in the country.
Mrs.Toki Mabogunje,the President of the chamber,noted that investors’ confidence had been weak before the COVID-19 pandemic , and many investors still see the Nigerian market as a risky venture despite the oil price recovery, vaccination dissemination and growth recovery.
She expressed that the confidence will remain weak in the short-term if the situation does not abate.
According to her,the crisis projects the Nigerian economy as an unsafe investment destination, adding that if unaddressed, would thwart government’s efforts in encouraging private investment inflows into the economy at a time the economy is in dire need of massive investments to bolster growth recovery, create jobs and alleviate poverty.
“The worsening security situation also impacts the fiscal position of government by making policymakers incur unplanned [unbudgeted] 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 said
She said the nation’s agriculture sector would also be negatively impacted by insecurity in the land.
She revealed that farmlands across the country have been destroyed in the process, and this has continued to disrupt agricultural activities in these areas,stressing that these have severe implications for food production and food distribution from farms to markets.
“We recognize insecurity as a major driver of the persistent increase in food inflation in recent years. The worsening security situation will trigger further inflationary pressure on food prices thus exacerbating the poverty conditions in the country.
“This alarming state of insecurity in the country has hampered the movement of goods, services, and persons across the country, with implications for agriculture, agro-allied services, trade and commerce especially in affected areas. transportation and logistics sector, hospitality and allied investments, education, construction, and real estate have been severely impacted by the crisis”
She emphasized the need for decentralization of the country’s security eco-system with a view to nipping the crisis in the bud.
She advised the executive arm of government to liaise with the National Assembly to take security out of the exclusive list of the Nigerian Constitution and include it in the concurrent list.
According to her:”The sub nationals need 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.
There is a need to ensure a concrete and sustainable means of reducing youth unemployment rate through youth employment schemes and programmes. There is a strong correlation between unemployment and criminality”
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