By DAYO ADESULU
The Lagos Chamber of Commerce and Industry (LCCI) has presented a comprehensive set of recommendations aimed at bridging economic gaps, boosting business growth, and driving sustainable development across Nigeria.
Speaking at the chamber’s first-quarter news conference in Lagos, LCCI President Gabriel Idahosa highlighted areas of concern, especially in achieving the ambitious targets outlined in the 2025 budget.
GDP Growth and Structural Bottlenecks
Idahosa acknowledged the resilience displayed in the 2024 third-quarter economic performance but noted significant disparities in industrial growth, non-oil productivity, and export capacity.
“While the 2025 GDP growth projection of 6.4% reflects optimism, it is ambitious compared to the average growth of 2.5–3.5% in recent years. To achieve this, fiscal discipline and an enabling environment are critical,” Idahosa stated.
He flagged the shortfall in oil production, which stands at 1.47 million barrels per day (mbpd) against the 2025 budget assumption of 2 million barrels, as a critical area requiring immediate attention.
Food Security and Agriculture
To enhance food security and bolster agriculture, the LCCI proposed a multi-faceted approach:
- Insecurity: Tackling insecurity at grassroots levels to drive agricultural resurgence.
- Incentives: Introducing strategic incentives for state governments to invest in agricultural mechanization, smart farming, and climate-resilient crop production.
- Access to Credit: Encouraging the Central Bank of Nigeria (CBN) to expand credit facilities for agriculture and agro-processing industries through risk-sharing mechanisms and partnerships with agritech firms.
“With the new Ministry of Livestock Development, the government has a unique opportunity to modernize livestock and aquaculture value chains and strengthen rural market access,” Idahosa added.
Manufacturing Sector Reforms
LCCI urged the government to implement transformative reforms in manufacturing by addressing key cost drivers like inflation, high interest rates, and forex instability. Recommendations included:
- Single-digit tax regimes for manufacturing entities.
- Public-private partnerships to lower production costs.
- Expansion of credit access to MSMEs through technology-driven lending platforms and concessionary rates below the CBN Monetary Policy Rate (MPR).
“These steps will safeguard jobs, improve competitiveness, and mitigate rising production costs,” Idahosa explained.
Energy and Infrastructure
The chamber underscored the need to modernize infrastructure and streamline refinery operations. LCCI recommended allocating significant resources from the 2025 budget to:
- Enhance energy efficiency.
- Eliminate fuel supply bottlenecks.
- Reduce logistics costs.
These measures, Idahosa stated, would attract foreign investments, stimulate industrial growth, and foster a more business-friendly environment.
Conclusion
The LCCI emphasized that achieving Nigeria’s economic goals will require bold, innovative policies and collaborative efforts across sectors. By addressing structural challenges and fostering growth drivers, the government can create a stable and prosperous economic landscape for businesses and citizens alike.
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