Increase investment in infrastructure, NBCC advises FG

Anna Okon

The Nigerian British Chamber of Commerce has advised the Federal Government to increase its investment in infrastructure as a way of creating more jobs.

The chamber gave this advice in a statement made available to our correspondent on Thursday.

In the document, which was signed by its President, Mr. Dapo Adelegan, the chamber stated that part of the government’s medium-term strategy was to invest in the economy though capital expenditure and supporting initiatives that would create jobs.

It said, “This is a way to boost liquidity in the economy and restore confidence. We are of the opinion that Nigeria’s economy could return to the path of growth again within the next 18 months if government focuses on an expansionary fiscal policy.”

It noted that one of the major factors that ‘changed the game’ for Nigeria had been its exchange rate policy.

The chamber said, “While it is difficult for Nigeria to avoid this following the decline in foreign exchange earnings, the situation could better be managed to sustain confidence in the naira.

“Given the FGN’s plans to raise funds, we expect that the current attractive fixed income interest rates, yielding real positive returns will attractive capital inflows.”

According to the NBCC, attaining the goal of diversification depends on the synergy between the government’s monetary policy and fiscal policy actions.

It stated, “Both instruments must be harnessed to bring about the desired results in restructuring the economy, boosting liquidity and increasing market confidence.

“The ongoing reforms of government must be supported by sustained investment in infrastructure and creation of jobs to restore Nigeria to the path of economic growth.”