The Lagos Chamber of Commerce and Industry (LCCI) has issued a potent call to action, urging the Federal Government of Nigeria to shift its focus from celebrating statistical improvements to implementing concrete reforms capable of revitalizing investor confidence, bolstering the value of the naira, and alleviating the pervasive cost-of-living crisis affecting millions of Nigerians. While acknowledging the positive rebased GDP figures and first-quarter growth, the LCCI emphasizes that these statistics mask the harsh realities faced by ordinary citizens and businesses grappling with soaring inflation, a depreciating currency, and escalating energy costs. The Chamber insists that the government must prioritize tangible economic transformation over mere statistical optimism.
At the heart of the LCCI’s concerns is the plight of the average Nigerian, whose purchasing power is continuously eroded by relentless inflation, particularly in the crucial food sector. The Chamber advocates for urgent intervention in the food security realm, including targeted subsidies, improved storage infrastructure, and streamlined logistics. Furthermore, it stresses the importance of supporting Micro, Small, and Medium-sized Enterprises (MSMEs) and the informal sector, which represent substantial segments of the Nigerian economy, through accessible financing and the comprehensive implementation of the 2025 Nigerian Tax Reform Act. Job creation in key sectors like agriculture, construction, and technology, coupled with aggressive skills development initiatives, is also deemed essential to empower the workforce and boost economic productivity.
The LCCI expresses strong reservations about the Central Bank of Nigeria’s (CBN) decision to maintain the Monetary Policy Rate at a high level, arguing that this places an undue burden on businesses and does little to address the root causes of inflation. The Chamber contends that focusing solely on rate hikes is ineffective and that the real sector, particularly agriculture and manufacturing, must be revitalized to achieve sustainable inflation control. While acknowledging a slight easing of overall inflation, the LCCI warns that persistent food inflation, coupled with high energy costs and structural inefficiencies, continues to pose significant threats to the economy. The Chamber suggests that interest rate cuts might be considered in the latter half of the year, contingent on effectively managing climate-related risks and improving security in agricultural regions.
The LCCI welcomes the marginal appreciation of the naira in the official market but expresses concern over the dwindling external reserves, attributed to lower oil prices and production. The Chamber calls for decisive action to combat oil theft and vandalism while simultaneously advocating for the expansion of local refining capacity. The escalating national debt, fueled by new borrowings and currency depreciation, is another critical area of concern for the LCCI. The Chamber warns of the unsustainable trajectory of the debt and its impact on debt service costs, urging the government to prioritize revenue diversification, expenditure cuts, and improved spending efficiency.
The LCCI commends the passage of the Nigerian Tax Reform Acts, recognizing its potential to simplify the tax system, reduce compliance burdens, and stimulate investment. However, the Chamber emphasizes the importance of widespread stakeholder engagement and taxpayer education to ensure successful implementation. Transparency in enforcement and building trust in the reformed system are also highlighted as crucial elements for the reforms to achieve their intended objectives. The Chamber applauds specific provisions, such as the exemption of small businesses from multiple taxes and the establishment of a Tax Ombuds Office, as positive steps towards a more equitable and efficient tax regime.
The LCCI raises concerns about the repeated rollover of the capital budget, arguing that this practice undermines budget credibility. The Chamber recommends a reassessment of the oil price benchmark in light of declining global oil prices. Responding to growth projections by international financial institutions, the LCCI acknowledges the potential for growth driven by increased oil output and a robust service sector but cautions that the agricultural sector remains hampered by insecurity. Echoing the recommendations of the International Monetary Fund (IMF), the LCCI urges the government to recalibrate its budget, strengthen monetary policy, implement social safety nets for vulnerable populations, and commit to deeper structural reforms. The LCCI endorses these recommendations and stresses the importance of sustaining ongoing reforms in infrastructure, energy, and services to achieve projected growth targets. Finally, the LCCI supports the ‘Nigeria First Policy’ as a timely response to rising global protectionism, but emphasizes the need for improvements in local production for the policy to be effective. The Chamber calls on the government to lead by example in procuring locally made goods and urges the National Orientation Agency to promote the policy’s benefits. Targeted financing, tax relief, and capacity building for SMEs are recommended to empower Nigerian businesses to capitalize on the policy. The LCCI emphasizes aligning the ‘Nigeria First Policy’ with the national food security agenda and replicating it at the state level. Ultimately, the LCCI’s message is clear: Nigeria stands at a critical juncture, and reforms without strategic execution will only exacerbate public frustration. The demand is for tangible results, not just policy pronouncements.
