By Merit Ibe     

Lagos Chamber of Commerce and Industry (LCCI) has said in the first two quarters of 2025, Nigeria’s economy recorded a modest GDP growth rate, mainly driven by services, telecommunications and some recovery in oil production.

President of the chamber, Gabriel Idahosa made the remark yesterday during the 2025 mid year economic review, noting that  inflationary pressures have remained elevated, mainly due to high food prices, energy costs, currency depreciation, and disruptions in logistics and supply chains.

“Headline inflation continues to hover around uncomfortable double-digit levels, eroding purchasing power and increasing business costs. Although the Central Bank of Nigeria has responded with tighter monetary policy and interest rate hikes, inflation remains stubborn and poses a significant challenge to private investment and household consumption.”

He also decried that despite reforms aimed at unification and increased transparency, the foreign exchange market still suffers from illiquidity, speculative tendencies, and a lack of investor confidence.

He emphasised that these macroeconomic imbalances must be addressed with greater urgency and coordination across fiscal and monetary institutions.

“The private sector, particularly small and medium-scale enterprises, continues to navigate a challenging operating environment marked by high energy costs, regulatory uncertainty, limited credit access, and infrastructure deficiencies. “Businesses across sectors, including manufacturing, agro-processing, trade, and logistics, face significant obstacles in their quest for profitability and scale. Power supply remains erratic, fuel prices are volatile, and security challenges persist, especially for agribusinesses and transport operators.

A significant development in 2025 has been the passage and implementation of the New Nigeria Tax Act, aimed at improving non-oil revenue, broadening the tax base, and enhancing compliance through digital platforms.”

The LCCI recognised areas of resilience and innovation, like the technology ecosystem which continues to evolve, with fintechs, e-commerce, and digital platforms providing new models for job creation and service delivery.

He pointed out that the creative industries and segments of the agricultural value chain have demonstrated strong adaptability and export potential.

For the resilience to translate into sustained growth,Idahosa said  there must be a deliberate strategy to de-risk the environment and create incentives for long-term investments.

“As stakeholders in economic development, we call for deeper collaboration between the public and private sectors. There is a need to strengthen investor confidence through predictable policy environments, legal clarity, and responsive governance.”

He advised that regulatory agencies must avoid abrupt decisions that increase the cost and complexity of doing business.

“The government must also prioritize infrastructure financing, ease of tax compliance, digitization of public services, and institutional reforms that enhance transparency and reduce the cost of governance.

Despite the challenges, he said Nigeria remains a land of vast economic promise. “Our youthful population, abundant natural resources, entrepreneurial energy, and strategic location make us uniquely positioned to become a regional powerhouse in innovation, manufacturing, and agribusiness.

“The digital economy continues to offer exponential possibilities, especially in areas like health tech, education, logistics, and financial services.

The African Continental Free Trade Area (AfCFTA) presents opportunities for regional trade expansion, value chain integration, and industrialization.

“Similarly, climate-smart investments and green financing present emerging avenues for sustainable economic growth.

However, unlocking these potentials requires deliberate and coordinated efforts.

“We must improve broadband infrastructure, invest in vocational training, promote domestic manufacturing, and support innovation hubs nationwide. Local content development, diaspora engagement, and targeted investment promotion strategies are also critical. In all this, the government must act not as a competitor but as a facilitator and enabler of business success.”

He advised that as we enter the second half of 2025, “we must approach the remainder of the year with renewed resolve, strategic focus, and collaborative spirit.

“Transforming Nigeria’s economy is a shared responsibility; government, businesses, civil society, and development partners must align their efforts toward common goals. We must move from policy rhetoric to implementation, from isolated efforts to integrated strategies, and from short-term fixes to long-term planning.

“The LCCI will continue to advocate for reforms that improve competitiveness, protect investments, and create jobs. We remain committed to building a strong, sustainable, and inclusive economy where businesses thrive and citizens prosper.”