LCCI Proposes Strategies to Strengthen Economic Growth

The Lagos Chamber of Commerce and Industry (LCCI) has outlined actionable strategies to enhance the nation’s economic landscape, aiming to foster business growth and drive sustainable economic development.

President of LCCI, Mr Gabriel Idahosa, made the recommendations at the chamber’s first quarter news conference on Thursday in Lagos.

He noted that while the recent Gross Domestic Product (GDP) growth figures highlighted commendable progress, gaps between current economic realities and the 2025 budgetary goals raised significant concerns.

Idahosa said the 2024 third-quarter performance demonstrated resilience but revealed structural bottlenecks, especially in non-oil productivity, industrial growth, and export capacity.

According to Idahosa, these concerns require targeted actions.

He added that oil production, at 1.47 million barrels per day (mbpd), remained below the 2025 budget assumption of two million barrels per day and sectoral growth patterns showed disparities that need immediate attention.

“While the 2025 GDP growth projections reflect optimism, we must pay attention to fiscal discipline, growth drivers, and the enabling environment.

“The assumed GDP growth rate of 6.4 per cent is notably ambitious, given the average growth trajectory of 2.5–3.5 per cent over recent years,” he said.

Idahosa said that strategic and proactive policy responses to spur economic growth included recognising the pivotal role of food security in national stability.

According to him, the LCCI urges the government to adopt a multi-pronged approach to tackling insecurity, which is critical for agricultural resurgence.

He said that by leveraging the 2025 budgetary allocations, the government should introduce strategic incentives for sub-national governments, especially at grassroots levels.

This, he stated, would channel significant investments into agricultural mechanisation, smart farming technologies, and climate-resilient crop production.

The LCCI president said to stimulate sustained private sector investment in agriculture, the Central Bank of Nigeria (CBN) must introduce targeted incentives for financial institutions to expand credit facilities for agriculture and agro-processing industries.

This, he said, could include risk-sharing mechanisms, favourable credit guarantee schemes, and structured partnerships with agritech firms to unlock untapped potential.

Idahosa said with more expectations from the recently created Ministry of Livestock Development, the government had a unique opportunity to implement innovative and data-driven policies.

“These should prioritise 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,” he said.

In light of increasing global economic shifts, Idahosa urged the government to spearhead transformative reforms in the manufacturing sector by addressing critical cost drivers such as high inflation and interest rates, among others.

He said 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.

He noted that while Micro, Small and Medium Enterprises (MSMEs) remain the backbone of Nigeria’s economy, the government must expand access to credit at concessionary rates below the prevailing CBN Monetary Policy Rate (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 modernising 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,” he said.