LCCI Says Nigeria’s Economic Growth Depends on Decisive Policy Action

The Lagos Chamber of Commerce and Industry (LCCI) has stated that Nigeria’s economic recovery and long-term growth will depend largely on the government’s ability to take bold and decisive policy actions that address inflation, stabilise the foreign exchange market, and promote sustainable industrial development.

In its latest economic review released on Friday, the Chamber warned that although recent government reforms have created a foundation for potential recovery, their positive effects will remain limited if not backed by strong policy implementation and strategic economic management. The LCCI said the country must act swiftly to confront rising inflation, declining purchasing power, insecurity, and fiscal imbalances that continue to weigh down production and investments.

According to the Director-General of the LCCI, Dr. Chinyere Almona, Nigeria’s current macroeconomic environment remains fragile despite the ongoing reforms initiated by President Bola Tinubu’s administration. She explained that while policies such as the removal of fuel subsidies and foreign exchange unification have improved fiscal transparency, their short-term impacts have been painful for businesses and households.

Almona emphasised that the country’s current inflation rate, which remains above 28 percent, is stifling industrial output and worsening living conditions. “The government must move beyond policy pronouncements and focus on tangible actions that can ease the cost of doing business,” she said. “Access to affordable energy, stable exchange rates, and security of life and property are essential for sustainable economic expansion.”

The LCCI urged the Central Bank of Nigeria (CBN) to sustain monetary tightening policies aimed at curbing inflation but warned against measures that could further restrict access to credit for the private sector. Almona noted that many businesses, especially small and medium enterprises (SMEs), are struggling to survive amid rising input costs, exchange rate volatility, and weak consumer demand.

The Chamber also called for urgent reforms in the power and transport sectors to boost productivity and attract foreign investment. It highlighted that inadequate infrastructure continues to increase the operational costs of businesses, making Nigerian products less competitive in regional and global markets. The LCCI recommended greater investment in renewable energy, road rehabilitation, and logistics efficiency to enhance the flow of goods and services.

On fiscal policy, the LCCI advised the Federal Government to broaden its revenue base by improving tax collection efficiency rather than imposing new taxes on already overburdened businesses. The Chamber added that government must ensure that borrowed funds are channeled into productive ventures that yield returns and stimulate job creation.

Dr. Almona stressed that Nigeria’s manufacturing sector, which should be the engine of growth, is struggling under the weight of high energy prices, insecurity in industrial zones, and limited access to foreign exchange for raw material imports. She called on the government to prioritise the allocation of forex to productive sectors such as manufacturing, agriculture, and technology.

“The government must also work closely with the private sector to drive inclusive growth,” she said. “The public and private sectors are partners in development, and it is through collaboration that we can achieve meaningful progress.”

The LCCI expressed optimism that with consistent implementation of economic reforms, Nigeria could experience moderate growth by 2026. However, it warned that policy inconsistency, weak governance, and insecurity could derail the recovery trajectory. The Chamber advised that all tiers of government must align their development plans with national economic priorities to ensure coordinated growth across regions.

Furthermore, the LCCI called for a renewed focus on export diversification and local value addition. It noted that Nigeria’s overreliance on crude oil exports exposes the economy to external shocks and limits job creation. The Chamber urged policymakers to invest in agriculture, manufacturing, and the digital economy to build resilience and foster inclusive development.

On foreign investment, the Chamber emphasised that Nigeria must restore investor confidence through transparency, policy stability, and improved ease of doing business. Almona said that unpredictable policy shifts discourage long-term commitments from both domestic and international investors. She added that the government should guarantee prompt repatriation of profits and create a fair regulatory environment that promotes innovation.

She also called for the digitalisation of key government processes, including customs operations and tax administration, to reduce bureaucracy and corruption. “Technology-driven governance will not only improve efficiency but also enhance revenue collection and accountability,” she said.

In conclusion, the Lagos Chamber of Commerce and Industry maintained that Nigeria’s journey toward economic recovery and prosperity rests on the government’s capacity to translate reforms into practical outcomes that benefit citizens and businesses alike. It urged the authorities to focus on productivity, competitiveness, and human capital development as core drivers of sustainable growth.

The Chamber reaffirmed its commitment to continue engaging policymakers, investors, and development partners in shaping policies that support industrialisation, innovation, and inclusive growth. According to Almona, the time for decisive action is now if Nigeria must achieve its full economic potential and position itself as a leading investment destination in Africa.