LCCI Urges Federal Government to Prioritise Naira Stability

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to place immediate and strategic focus on stabilising the naira, stressing that continued volatility in the foreign exchange market is undermining investor confidence, raising the cost of doing business, and deepening inflationary pressures across the country.

In a statement issued by the Chamber’s Director-General, Dr. Chinyere Almona, the LCCI noted that while efforts by the Central Bank of Nigeria (CBN) to unify exchange rates were commendable, the current trajectory of the naira’s depreciation required more decisive fiscal and monetary interventions. According to the LCCI, businesses—particularly those dependent on imports—are grappling with operational uncertainty due to wide fluctuations in exchange rates.

Dr. Almona pointed out that manufacturers, importers, and SMEs are unable to make long-term plans because of the naira’s instability, with many being forced to adjust prices multiple times within short periods. She explained that this is not only discouraging to investors but also contributing to supply chain disruptions and making inflation harder to contain.

The LCCI also warned that continued depreciation of the naira without strong buffers could reduce Nigeria’s global competitiveness and make it more difficult for local firms to scale operations. The Chamber emphasised that unless the government urgently intervenes to restore investor confidence in the currency, the economic environment could further deteriorate, especially for small and medium-sized enterprises that lack the financial resilience of larger corporations.

To address the issue, the LCCI recommended a combination of short- and long-term strategies. These include improving dollar liquidity in the official market, boosting non-oil export earnings, incentivising diaspora remittances through formal channels, and ensuring greater transparency in forex allocation. The group also urged authorities to tackle structural challenges that weaken the naira, including overreliance on oil revenues and low productivity in the real sector.

The Chamber called for more stable and predictable economic policies that would provide the private sector with a clearer outlook for planning and investment. Dr. Almona noted that with appropriate policy consistency and coordination between the fiscal and monetary arms of government, the naira could gradually regain strength and stability.

Furthermore, the LCCI advised the government to encourage more foreign direct investment (FDI) by ensuring a stable exchange rate regime and addressing barriers such as insecurity, bureaucratic red tape, and inadequate infrastructure. These, the Chamber argued, would help attract the kind of capital inflows needed to support external reserves and, by extension, the naira.

The statement also highlighted the effect of naira weakness on inflation, particularly as it pertains to food and energy prices. Imported inputs, fuel, and transportation costs have risen in tandem with the declining currency, placing further pressure on households and pushing more Nigerians below the poverty line.

While acknowledging ongoing reforms by the CBN and the Ministry of Finance, the LCCI stressed that policy effectiveness would ultimately depend on their execution and market perception. Confidence in Nigeria’s macroeconomic direction, it said, is key to restoring exchange rate stability and reviving economic growth.

As the business community braces for further adjustments, the Chamber reaffirmed its commitment to supporting dialogue between the private sector and government. It pledged to continue advocating for policies that protect local industries, promote exports, and restore confidence in Nigeria’s economic fundamentals.