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By Merit Ibe
The Lagos Chamber of Commerce & Industry (LCCI), has asserted that economic growth in 2025 will depend on sustained fiscal reforms, exchange rate stabilisation and enhanced monetary policy coordination.
It projected the outlook for 2025 to be cautiously optimistic, with GDP growth projected to accelerate upward, contingent on sustained policy reforms, improved oil sector output and investments in infrastructure. The chamber made the remarks in its statement on the economy, based on inflation projected in the 2025 budget to decelerate to 15% as policy impacts crystallize.
Acknowledging the resilience of Nigerians and the business community in navigating the economic challenges in 2024, the chamber noted that the economy experienced a tumultuous period marked by persistent rising prices, burdening interest rates, high cost of production, low demand and an uncertain macroeconomic policy direction.
President of the chamber, Gabriel Idahosa, pointed out that the country stands at a critical juncture, presenting hope for possible transformative growth, which requires decisive and strategic policy actions to address lingering challenges. He therefore advised that prioritizing diversification, investment in critical sectors and policy consistency will be essential to achieving the government’s medium-term economic recovery objectives.
On the domestic economy in the out going year, Idahosa noted that Nigeria’s economic landscape was shaped by a confluence of challenges that impacted major indicators like the persistently high inflation rates driven by escalating costs of goods and services and the ongoing implementation of tight monetary policies to stabilize prices, adding that the nation grappled with an unstable currency compounded by foreign exchange scarcity, which created uncertainties for businesses and investors.
“The removal of subsidies on fuel resulted in a significant spike in inflation. As a result, petrol prices surged from N198 to an astonishing N1,030 in just 18 months. Since the removal, inflation has increased from 22.79% in June 2023 to 34.60% in November 2024. Because fuel is integral to every facet of life, subsidy removal has been a major driver of high food prices, transportation, energy costs, and, generally, the cost of living. Available data from the NBS showed that food inflation at 39.93% in November 2024 was significantly higher than 24.82% before the subsidy removal. Also, core inflation increased to 28.75% in November 2024 from 19.83% in May 2023.”
Idahosa recalled that in 2024, Nigeria’s economic growth remained modest, with GDP expanding at an estimated 3.46%, reflecting the lingering impact of structural challenges, insecurity and global economic headwinds.
“Key growth drivers included the non-oil sector, particularly telecommunications, agriculture, and services, while oil production recovery was hampered by theft and underinvestment. Fiscal reforms, including subsidy removal and tax efficiency measures, supported revenue but added to inflationary pressures.
“Enhanced public-private partnerships and efforts to bolster economic diversification remain pivotal to achieving inclusive and sustainable growth.
The chamber urged the Federal Government to prioritize the following key areas to unlock sustainable economic growth and improve the well-being of Nigerians in the year ahead:
addressing inflation and Promoting Price Stability; Ensuring Fiscal Sustainability and Debt Management; Improving the Ease of Doing Business; Tackling Unemployment and Empowering Youths; Enhancing Food and Energy Security;Advancing Trade and Investment.
The LCCI boss advised that businesses must embrace innovation, digital transformation and sustainability as growth strategies, while collaboration between the private and public sectors is critical to overcoming challenges and attracting investment.
“We need investments in the telecoms sector to drive the desired digital revolution, oil and gas investments to boost crude production levels, and the power sector to enhance power generation to support economic activities. We expect to see some ease in fuel prices in the first quarter as the price wars continue and a possible easing in interest rates in the second quarter of 2025.”
