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10% GDP: LCCI doubts report�s credibility
Atser Godwin
The Lagos Chamber of Commerce and Industry have disputed the 10 per cent Growth Domestic Product reported by the Central Bank of Nigeria in its last quarterly report.
According to the President of the chamber, Chief Olusola Faleye, who spoke to our correspondent on Wednesday, the report is capable of creating an illusion of the country�s economic prosperity.
The report, he said, ascribed 33.4 per cent contribution of the GDP to the oil sector, which he described as an enclave economy with little local value added and very marginal job creation capability and multiplier effect on the rest of the economy.
Taking a retrospective examination of the report, Faleye said, �The 10 per cent GDP growth rate is the highest in the history of the country, so also is the contribution of the oil sector to the GDP.
�In 2002, the GDP growth rate was 3.3 per cent. It is, therefore, astounding that the growth rate increased by over 300 per cent in 2003. It is difficult to perceive that anything dramatic had happened in the Nigerian economy in 2003 to generate such a significant leap in the GDP growth rate.�
He maintained that it was startling that the oil sector, which had over the years contributed less than 15 per cent to the GDP suddenly account for 33.4 per cent in year 2003.
Faleye said that it was inconceivable that the oil sector, which employs less than 0.5 per cent of the nation�s work force would contribute such a percentage to the nation�s GDP.
He stressed that even the National Economic Empowerment Development Strategy Document projects a GDP growth rate of seven per cent for the economy in 2007.
Commenting on the Import Prohibition Policy, Faleye said that it was high time the Federal Government took a reappraisal of the policy as it had done more harm than good to the small and medium scale industries, hence most of the industries have folded up due to ban on importation of raw materials.
He urged the Federal Government to utilize the revenue from oil windfall for the development of infrastructural facilities, particularly power supply.
�We are mindful of the economic reform processes and the ongoing privatisation of the public power supply institutions, but this sector is so critical to private sector performance that something urgent needs to be done to improve the current power supply situation,� he said.
The Punch, Thursday July 08, 2004
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