Expect high inflation rate in 2020 – LCCI Director General
.Says border closure a contributory factor
By Udeme Clement
The Lagos Chamber of Commerce and Industry, LCCI, has projected high inflation rate, as well as high cost of doing business in 2020 economic year.
This formed part of the details released by the Director General of LCCI, Dr Muda Yusuf, while giving details review of economic activities in 2019 and outlook for 2020.
According to him, high inflation rate will be driven by implementation of new minimum wage, while multiplicity of levies, excessive regulations and dearth of infrastructure in the country will push the cost of doing business higher in 2020.
The Director General of LCCI also said that closure of land borders across Nigeria will be another contributory factor to high inflation rate in the economy by 2020.
He said the competition between foreign and local manufacturing firms would fade due to prolonged closure of land borders.
His explanation, “We expect economic growth to be subdued at about two percent by next year, as consumer demand and private sector investments may likely remain weak”.
He stressed, “We are of the opinion that failure by government to fix structural constraints with regards to fixing power challenges and rehabilitating deplorable roads may contribute to poor productivity of the manufacturing sector”.
Yusuf pointed out, “In our opinion, continued protectionist measures of government will most likely limit growth in 2020”.