Investment in infrastructure will minimise impact of rate hike on businesses
TO minimise the effect of rate hike on companies and business operations, there is need for government to focus more on policies that will unlock infrastructure.
According to experts who spoke in an chat with The Guardian, this would also help to boost existing firms and attract new businesses into the country.
The experts noted that the impact of rate hike was devastating on businesses partly due to the deplorable state of nation’s infrastructure and other impediments threatening the ease of doing business in Nigeria.
They expressed worry on the impact of recent rate hike and parlous infrastructure on companies operating in the country, resulting in high cost of operations, shrinking profit margin and total collapse of businesses in Nigeria, especially the SMES.
According to them, the trend has worsened nation’s slow economic growth as seen in various sectors in the last few years.
For instance, GDP growth in the manufacturing sector in the first quarter of 2023 was 1.61 per cent ( year- on- year), lower than 6.93 per cent achieved in 2022. Also the figure in 2022 was lower than 31.6 per cent in 2021. The experts argued that the proportion of Nigeria living in poverty may continue to if government fails to tackle these issues within the shortest period of time.
Managing Director of Academy Press Plc, Olugbenga Ladipo said: "There is need to improve infrastructure and create conducive environment for business to operate. There is need for discipline and security too. Also, common funds should be well utilised so that we can have good competition that is merit based.
"I think there are a lot of wastages in government. Money spent do not receive appropriate value. It is also appropriate to patronise Nigeria made goods.