The Lagos Chamber of Commerce and Industry (LCCI) says Nigerian businesses may likely face greater challenges in the new year, urging them to prepare for “more stress.”

In a statement on Monday, Chinyere Almona, LCCI’s director-general, said businesses are likely to face higher interest rates when the next Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting holds.

“The persistent rise in the inflation rate, reaching a 28-year record high of 34.60 in November, continues to fuel a tense business environment as elevated prices constrain various business operations,” Almona said.

“The Lagos Chamber of Commerce and Industry (LCCI) is particularly concerned because, with the persistent and unabated rise in inflation, businesses should prepare for more stress from the burden of higher interest rates as we enter the new year.”

“With the raging inflation rate, the unsuccessful attempt of the Central Bank to reduce the currency in circulation, and approaching a high-spending festive period, we are set to contend with even higher interest rates as the expected outcome from the next decisions by the CBN Monetary Policy Committee (MPC).”

Almona explained that a high inflation rate has significant implications, including reduced consumer spending.

She said it negatively impacts the economy by reducing disposable income, increasing business costs, and discouraging investments, ultimately threatening economic growth.

‘FOREIGN DIRECT INVESTMENT IN NIGERIA DROPPED TO $103.82M IN Q3 2024’

According to the statement, foreign direct investments (FDIs) in Nigeria dropped to $103.82 million in Q3 2024, making the country less attractive to investors.

Almona said interest rates have had limited success in curbing inflation, but reforms aimed at boosting production have shown some promise.

She expressed hope that the reforms would eventually have a stronger impact on key indicators such as inflation, interest rates, and exchange rates.

The director-general said a coordinated effort is required to drive oil production to earn more forex, which is needed to defend the naira in the short term.

“The new investments recently entering the oil fields can be well supported with a sound regulatory environment to sustain and attract more,” she said.

“A disappointing negative record of our capital importation at $1.25bn during the third quarter of 2024 compared with $2.60bn recorded in the preceding second quarter of the year points to an unattractive environment for investors.”

“Foreign Direct Investment, the most critical investment that shows long-term investor confidence, accounted for only $103.82m, or 8.29 percent.”

Almona added that the fight against terrorism and crime must be sustained to ensure the safety of farmlands.

She noted that the rising costs of food, energy, housing, transportation, and services are driving inflation, worsening economic conditions, and reducing both purchasing power and business profitability.

However, Almona stated that the LCCI believes ongoing reforms have the potential to deliver significant benefits, enabling the economy to return to a growth path and achieve positive outcomes for critical economic indicators, provided they are sustained.

The Edo House of Assembly has suspended all the chairpersons and their deputies at the 18 LGAs for two months over allegations of misappropriation of funds.

According to NAN, the decision was made during the plenary on Tuesday following a heated debate.

The heads of the various legislative arms have been directed to oversee the running of the councils for the next two months.

The suspension came after a motion was moved by Isibor Adeh, the member representing Esan North-East I, and seconded by Donald Okogbe, the member representing Akoko-Edo Constituency II.

Blessing Agbebaku, the speaker of the house, stated that Monday Okpebholo, governor of Edo, had written a petition to the assembly regarding the chairmen’s refusal to submit the financial records of their LGAs to the state government.

In the letter, Agbebaku said the governor described the action of the chairmen as an act of insubordination and gross misconduct.

He added that the governor requested the House of Assembly to look into the matter.

When the matter came up for debate, 14 members supported the motion for their suspension, six opposed, while three lawmakers abstained.

The House of Representatives has summoned Christopher Musa, Chief of Defence Staff (CDS), and Olufemi Oluyede, Chief of Army Staff (COAS), over the alleged arrest of Bello Bodejo, president of Miyetti Allah Kautal Hore.

During Tuesday’s plenary, the parliament instructed Musa and Olufemi to order the “immediate release” of Bodejo from “unlawful detention and apologise to him for infringing on his constitutionally guaranteed fundamental human rights.”

The resolution was passed following the adoption of a motion of urgent public importance sponsored by Mansur Soro from Bauchi State.

Last week, Bodejo’s family reported that he was arrested and detained by officers of the 117 Battalion of the Nigerian Army in Maliya, Nasarawa State.

Suleiman Waziri, Bodejo’s brother, stated that he was arrested over an incident involving some herders and a retired army general in the Tudun Wada area of Nasarawa.

Moving the motion, Soro alleged Bodejo was “arrested in a commando style with no prior invitation or court injunction.”

He further stated that Bodejo has yet to be arraigned in court, one week after his arrest and committal to prison.

The legislator argued that the continued detention of Bodejo constitutes a breach of his fundamental human rights and a violation of sections 34, 35, and 36 of the 1999 Constitution.

The motion was adopted when it was put to a voice vote by Tajudeen Abbas, Speaker of the House.

The Army Chief, Chief of Defence Staff, and the commanding officer of the 177 Battalion are to appear before the committees on Army, Human Rights, and Justice on Thursday.