The Lagos Chamber of Commerce and Industry (LCCI) has proffered actionable solutions to benefit businesses, strengthen economic growth, and development in 2025.
The chamber viewed that while the 2025 GDP growth projections reflect optimism, the government must pay attention to fiscal discipline, growth drivers, and the enabling environment, noting that the assumed GDP growth rate of 6.4% is notably ambitious, given the average growth trajectory of 2.5–3.5% over recent years.
The President of the chamber, Gabriel Idahosa, made the recommendations at the Chamber’s state of the economy address, where he noted that the recent GDP growth figures highlight commendable progress but observed that the gap between current economic realities and the 2025 budgetary goals raises significant concerns that require targeted actions.
Idahosa added that the National Bureau of Statistics (NBS) GDP report for Q3 2024 performance demonstrates resilience but reveals structural bottlenecks, especially in non-oil productivity, industrial growth, and export capacity.
He expressed concerns over the implications of the report for Nigeria’s economic trajectory, particularly against the backdrop of the ambitious assumptions in the 2025 federal government budget.
However, the LCCI boss noted that solutions to the issues were already emanating but needed speed and scale, pointing out that the economy in 2025 is starting in an improved pedestal.
He was empathetic that all the projections made by the chamber and others are based on certain fundamentals, one of which is fiscal discipline.
He further recommended strategic and proactive policy responses for growth to include recognizing the pivotal role of food security in national stability. “The government should adopt a multi-pronged approach to tackling insecurity, which is critical for agricultural resurgence. By leveraging the 2025 budgetary allocations, the government should introduce strategic incentives for sub-national governments, especially at grassroots levels, to channel significant investments into agricultural mechanization, smart farming technologies, and climate-resilient crop production.”
To stimulate sustained private sector investment in agriculture, the Chamber advised that the Central Bank of Nigeria (CBN) introduce targeted incentives for financial institutions to expand credit facilities for agriculture and agro-processing industries.
“This could include risk-sharing mechanisms, favorable credit guarantee schemes, and structured partnerships with agritech firms to unlock untapped potentials.
“With more expectations from the recently created Ministry of Livestock Development, the government has a unique opportunity to implement innovative and data-driven policies. Government has to prioritize modernising livestock and aquaculture value chains, incorporating advanced breeding technologies, and strengthening rural market access. Effective execution of these recommendations will not only enhance protein sufficiency but also position Nigeria as a leader in sustainable livestock and aquaculture in Africa.”
On the manufacturing sector, the chamber noted: “In light of increasing global economic shifts, we urge the Government to spearhead transformative reforms in the manufacturing sector by addressing critical cost drivers such as high inflation, interest rates, multiple taxation, and exchange rate volatility. Strategic measures should include instituting single-digit tax regimes for manufacturing entities, stabilising the naira through proactive foreign exchange policies, and leveraging public-private partnerships to reduce production costs.
“MSMEs remain the backbone of Nigeria’s economy, and we urge the government to expand access to credit at concessionary rates below the prevailing CBN MPR. Additionally, introducing technology-driven lending platforms and tailored financial literacy programs can empower MSMEs to scale operations effectively. These steps will mitigate the rising cost of production, safeguard employment, and improve the competitiveness of Nigerian products in regional and global markets.
“Enhancing productivity in the real sector requires a comprehensive strategy. The Chamber recommends that the government allocate significant resources from the 2025 budget towards modernizing infrastructure, streamlining refinery operations, and eliminating fuel supply bottlenecks.
By fostering energy efficiency and reducing the cost of logistics, these measures will drive industrial growth, attract foreign investment, and improve the overall business environment in Nigeria.”
The chamber added that the continued rise in inflation is driven by poor crop production by farmers who are constrained by security challenges, transport costs, and the emerging impact of climate change. “Beverages, produced mainly by local and multinational companies, have also recorded rising costs due to the challenging environment in which these manufacturers operate. Livestock and poultry have also been strong drivers of food prices in the past year.”
Idahosa, therefore, urged the government to remain focused on boosting food production through ongoing policy reforms, targeted fiscal interventions, and better management of Nigeria’s floating exchange rate regime.
“The floating exchange rate policy adopted last year without any form of control has not shown good results till now. As an import-dependent nation, we need to consider better management approaches that fit the current profile of our economy.
“Boosting the supply of FOREX will also help strengthen the Naira if transactions in the forex market are transparent enough to reduce speculative activities.”
The chamber is optimistic that if the government harmonizes its fiscal and monetary instruments to tackle the cost of agricultural production, enhance food processing, and sustain the fight against insecurity, inflationary pressures may soon begin to abate, and other economic variables can begin to record positive indicators.
“With the Naira firming progressively in the past weeks, the government earning more FOREX to boost the supply of Dollars, and the intensive focus on targeted interventions, we should begin to see an easing posture with the inflationary pressures.”