ADDRESS ON THE STATE OF THE ECONOMY BY THE PRESIDENT OF THE LAGOS CHAMBER OF COMMERCE AND INDUSTRY, MR. GABRIEL IDAHOSA, FCA, HELD ON WEDNESDAY 23RD JULY 2025, AT THE COMMERCE HOUSE, VICTORIA ISLAND, LAGOS

Deputy President, LCCI

Engr. Leye Kupoluyi

Vice Presidents here present

Director General, LCCI

Dr. Chinyere Almona, FCA

Distinguished Gentlemen of the Press,

On behalf of the Lagos Chamber of Commerce and Industry, I extend warm compliments to you as we gather for this third press conference in 2025.

Thank you again for joining us on this collective journey of quarterly engagements, where we review the significant economic developments of the previous quarter and articulate our perspectives to the broader business community and the Government.

As a foremost advocacy body for the private sector in Nigeria, we remain committed to promoting a thriving, inclusive, and sustainable business environment. Today, we are here to provide an informed assessment of the state of Nigeria’s economy and outline critical issues that have shaped the economic landscape in the last quarter.

This approach has become a hallmark of our public policy advocacy efforts, driven by our unwavering commitment to fostering a stronger economy and a more business-enabling environment. Through comprehensive macroeconomic diagnostics during these briefing sessions, we aim to spotlight critical areas of concern while presenting actionable recommendations to the Government. We aim to champion policy alternatives that empower the private sector to thrive and contribute meaningfully to national development.

I want to take this opportunity to extend a special acknowledgment and heartfelt appreciation to the media. Your steadfast contributions have been instrumental in amplifying our advocacy efforts over the years. As an institution dedicated to protecting and promoting business interests, we deeply value this enduring partnership and your commitment to fostering an informed and engaged society.

Together, we can continue to shape an economic landscape that benefits businesses and strengthens our national economy.

1. GLOBAL ECONOMIC DEVELOPMENT

In the second quarter of 2025, the global economy was weakened by US tariffs, trade tensions, geopolitical unrest, and uncertainty. With escalating tariff wars between the United States and the European Union, and the U.S. and BRICS member countries and partners, global trade is expected to reach an all-time low, resulting in disruption of supply chains, economic slowdown risks amid fragile growth in the EU on the back of expected retaliatory tariffs and investment climate uncertainties.

In the light of recent global trade and geopolitical dynamics, we call on the Federal Government to reconsider its foreign policy mix to ensure Nigeria is not left behind in global affairs, and as it affects international trade.  In our recent alignment with the BRICS, we must wisely choose our trade partners and global alignments to avoid any consequences that can negatively affect our worldwide reputation and pursuits.

In the face of continued tariff crises and uncertainty, we must pay more attention to seriously supporting non-oil exports to more favourable destinations as we recalibrate our trade partnerships. With about 3000 products now permitted to enter the United Kingdom at very favourable terms in a new policy shift, and just as the US continues to announce more tariffs on Nigerian exports to the USA, it is time to support targeted exporters to increase our foreign earnings.

Global Economic Outlook

1. The Outlook highlights a range of risks, starting with the concern that further trade fragmentation, including new tariff hikes and retaliatory actions, could intensify the growth slowdown and trigger significant disruptions in cross-border supply chains.
2. Global spending on defence is expected to rise to meet contemporary security concerns. NATO countries have committed to increasing defence spending, with a new target of 5% of GDP. This may strain the budget for critical human development areas like education, international aid and development, and global healthcare support programmes.
3. The outlook for inflation remains vulnerable to external shocks, including spillovers from trade tensions and heightened financial and commodity price volatility. Central banks will be pressured to slow, pause, or reverse their monetary easing cycles.
4. Near-term budget pressures from debt service costs and military spending will be compounded in the long run by persistent costs associated with climate mitigation, adaptation, and population ageing. Sizeable primary deficits, elevated interest payments, and lower growth will keep public debt ratios high and rising in many OECD economies over 2025-26.
5. Higher debt payments could increase fiscal pressure on governments worldwide, while tighter financial conditions will pose additional risks for low-income countries. Equity markets have recovered from a recent slump but remain volatile.

With Trump’s extra 10% tariff on Nigeria due to its alignment with BRICS, we believe that the country should adopt a multi-pronged policy response that safeguards its national interest, asserts its development priorities, while avoiding being caught in great power rivalries.

1. We recommend that the government engage in bilateral dialogue with the U.S. to discuss concerns and reaffirm Nigeria’s strategic importance as a West African leader and key partner. The negotiation should focus on sector-specific exemptions from the tariff, emphasizing non-oil sector exports.
2. Nigeria must pursue a non-aligned, interest-driven foreign policy by positioning BRICS membership as a vehicle for economic cooperation and not political alignment. Also, emphasis should be on Nigeria’s sovereign right to pursue partnerships that address its development needs, especially in areas like infrastructure, energy transition, and digital inclusion.
3. The Chamber recommends that Nigeria strengthen regional and South-South trade by expanding trade within ECOWAS and AfCFTA, reducing overdependence on Western markets. We should also negotiate preferential trade terms within BRICS (especially with China, India, and Brazil) to offset losses from U.S. tariffs.
4. We urge the federal government to deliberately implement a strategic trade diversification plan. Accelerate reforms to improve the business environment, attract non-aligned investors, and incentivize local industries most affected by U.S. tariffs to find alternative markets.
5. We recommend that the government strengthen domestic capacity and industrial policy by pursuing a national industrialisation strategy – invest in manufacturing, agro-processing, and local value chains, and reduce the country’s over-reliance on oil exports (which may face decreased demand in the U.S. under the tariff regime).
6. We should also leverage multilateral platforms like the WTO, UNCTAD, and AU to raise concerns over punitive economic measures targeting developing countries’ sovereign alliances.

• THE DOMESTIC ECONOMY
  • GDP REPORT

First Quarter 2025 GDP Growth

The Lagos Chamber of Commerce and Industry (LCCI) acknowledges the recent release of Nigeria’s rebased GDP figures and the Q1 2025 economic growth data. With a real growth rate of 3.13% and nominal GDP now recorded at ₦372.82 trillion, this development offers a more comprehensive and contemporary reflection of the Nigerian economy, capturing vibrant informal activities, tech-driven enterprises, and service-oriented sectors that were previously under the radar. The rebasing from the 2010 to 2019 base year brings Nigeria closer to global statistical standards and reveals a more diversified economy, where real estate, trade, telecoms, and crop production now dominate, while oil’s share continues to decline.

However, behind the optimistic figures lies our reality. Economic conditions have put a large portion of the population into poverty, inflationary pressures have continued to weaken our purchasing power, and rising cost of living has continued to rise. Inflation remains unrelenting, especially in the food segment, an alarming indicator in a country where most household expenditure is food-related. The naira’s depreciation, now hovering above ₦1,530/$, has severely diminished real incomes, while energy costs, from petrol and diesel to cooking gas, remain painfully high. These pressures affect both households and businesses, worsening inequality and making daily survival a struggle for many.

Therefore, this is a call to action. The government must move from statistical celebration to strategic economic transformation.

1. Stabilizing the naira must be a top priority, this requires restoring FX confidence, boosting non-oil exports, and supporting domestic production.
2. Food security must be urgently addressed through input subsidies, storage systems, and improved logistics to combat inflation and hunger.
3. The government must intensify efforts to empower MSMEs and the informal sector through access to finance, aggressive operationalization of the 2025 Nigerian Tax Reform Act, and deployment of digital tools.
4. We need targeted job creation programmes, especially in agriculture, construction, and technology, backed by aggressive skills development.
5. Restore citizens’ confidence through transparency, social protection, and visible policy implementation.

International development agencies like the World Bank and the IMF have projected Nigeria’s GDP growth at 3.6% and 4.1% in 2025 to be driven by an expected increase in oil production, and the services sectors like financial services, telecommunications, and ICT. Improvement in local refining capacity is expected to ease energy costs, save foreign exchange spending, and attract more investments into the oil and gas sector. However, we urge the government to pay continuous attention to inflation and the foreign exchange market and sustain efforts in fiscal and monetary policy interventions.

The Article IV Consultation on Nigeria by the International Monetary Fund (IMF)

At the conclusion of the Article IV Consultation on Nigeria, the Executive Board of the International Monetary Fund (IMF) highlighted that the GDP growth of 3.4 percent recorded in 2024 was driven mainly by increased hydrocarbon output and the vibrant services sector. Meanwhile, agriculture remains subdued, owing to security challenges and sliding productivity. We expect growth from the new domestic refinery, higher oil production, and robust services.

The IMF’s advice is clear: recalibrate the budget, tighten monetary policy, protect the poor, and push deeper structural and institutional reforms to ensure these macro gains translate into inclusive and resilient development. We therefore call on the government to sustain the ongoing reforms. While we do not have any GDP figures yet for this year, we call for support for the identified growth-enhancing sectors, like the power, energy, infrastructure, and services sectors, to achieve the growth projections.

The Nigeria First Policy

The Chamber welcomed the introduction of the Nigeria First Policy as a timely, strategic response to the US tariff hikes and global trade tensions. However, to achieve a meaningful impact with the policy, the government should ensure the following:

1. Significantly boost its production capacity. This requires addressing critical factors against productivity, including high energy costs, inadequate energy supply, inefficient transportation and logistics infrastructure, and other infrastructure.
   1. The federal government should align the policy with the administration’s food security agenda and encourage sub-national governments to replicate similar policies at their levels.
   1. Also, the Government must demonstrate leadership by prioritizing the procurement of locally made goods, including vehicles and refreshments, across all Ministries, Departments, and Agencies (MDAs).
   1. The government should support SMEs through targeted concessionary financing, tax reliefs, and human capacity improvements to enable them to take full advantage of the policy’s opportunities.
   1. The Chamber urges the National Orientation Agency (NOA) to develop and execute a robust public awareness campaign to communicate the goals and benefits of the Nigeria First Policy to all Nigerians

• MONETARY POLICY DEVELOPMENTS

The Monetary Policy Committee (MPC) met for the third time this year in July to retain the Monetary Policy Rate (MPR) at 27.50% with all other parameters on hold. The pause follows an earlier pause in May after fourteen consecutive rate hikes enacted since April 2022, totaling 1,600 basis points of tightening.

In our Pre-MPC Statement issued before the Committee meeting, the Chamber had expressed the desire for a rate cut considering the increased borrowing costs on businesses, reduced investment incentives, and heightened uncertainties in our policy environment. With a positive inflation outlook and stability in the foreign exchange market, we expect to see a rate cut before the end of the year.

With a rate cut, businesses will find it easier to finance expansion plans, potentially boosting job creation and economic output. At the Chamber, we have consistently advised that rate hikes alone will not curb inflation without resolving the challenges of the real sector, which comprises the agriculture and manufacturing sectors.

While we appreciate that the current reforms may have started to have some impact on stabilizing the exchange rates, easing headline inflation, and increasing government revenue, we must restate that interest rate at 27.5% remains a depressing burden on businesses.

1. INFLATION

Nigeria’s inflation rate eased to 22.22% in June 2025, marking the fourth consecutive monthly decline since March. This downward trend reflects the impact of tighter monetary policy, relative stability in the foreign exchange market, and easing food prices in some regions. Food inflation, however, rose to 21.97% in June from 21.14% in May, implying an increase of 0.83% points. Similarly, core inflation increased by 0.48% to 22.76% in June compared to 22.28% in May.

Despite this progress, inflation remains elevated, mainly driven by persistent food inflation, high energy costs, and structural inefficiencies in supply chains. The Central Bank of Nigeria (CBN) is expected to maintain a cautious stance, balancing the need to contain inflation to support economic recovery.

If sustained, the continued moderation in inflation could create room for interest rates to ease in the second half of the year, improving access to credit for businesses and consumers. To support this expectation, we must proactively deal with climate change’s increasing threats and impacts, as seen in flooding in many parts of the country. Food inflation has continued to defy all applicable measures so far due to the persistent threat from insecurity around our farmlands.

• THE FOREIGN EXCHANGE MARKET

In the second quarter of 2025, the Naira continued to maintain its stability; it appreciated by 0.46% in value against the dollar in the official market from N1,536.32/$ at the end of March 2025 to N1,529.21/$ at the end of June 2025. Compared to the parallel market, the premium remained within the maximum benchmark of 5%, recording 2.50% at the end of June 2025.

The Chamber recognizes that the stability of the exchange rate for some time was due to the strict CBN’s foreign exchange market transparency and orthodox monetary policy stance, resulting in investors’ confidence and a rise in foreign capital inflows. Also, a unified exchange rate has curbed speculative demand that previously inflated the market. At the same time, a significant decline in the importation of refined petroleum products due to domestic refining has resulted in a decrease in demand for forex. Despite the gains recorded by the Naira, the country’s external reserves maintained a downward trajectory.

Data from the Central Bank of Nigeria (CBN) revealed that Nigeria’s external reserves declined by $1.10 billion in the second quarter of 2025 from $38.31 billion at the end of March 2025 to $37.21 billion at the end of June 2025, reflecting a decrease of 2.9%. The decline reflects a significant drop in FX inflows from crude oil due to decreased oil prices and a dip in oil production. We can achieve the 2million bpd target if we focus on the most critical issues around oil theft, pipeline vandalism, and boosting local refining capacity to conserve our foreign exchange.

• FISCAL POLICY ENVIRONMENT

Nigeria’s macroeconomic policy environment remains at a crossroads, with reform momentum frequently hindered by implementation delays and stakeholder resistance. Nevertheless, progress has been recorded in key areas such as fiscal consolidation, digital governance, and steps toward regulatory harmonization.

A significant milestone is the enactment of the Nigeria Tax Act 2025, passed in June, which promises to simplify our hitherto complex tax system. The Act consolidates seven federal taxes into a single unified platform, eliminates redundant levies at state and local levels, and mandates the digitization of tax reporting via a centralized system managed by the Federal Inland Revenue Service (FIRS). These measures are expected to lower compliance costs, especially for MSMEs and digital service providers.

However, for these reforms to succeed, compliance enforcement must follow clear regulations, broad stakeholder engagement, and sustained taxpayer education to rebuild trust in the system. We commend FIRS’s recent decision to suspend enforcement of Non-Resident Company (NRC) taxes on SMEs operating on digital platforms, a pragmatic step that acknowledges the unique challenges faced by small businesses in the digital economy and one that should be codified through more explicit tax code definitions.

1. THE 2025 FEDERAL GOVERNMENT BUDGET

Nigeria’s upper chamber stretched the life of the 2024 Appropriation Act’s capital vote, first to 30 June 2025 and, at plenary on 24 June 2025, to 31 December 2025, to keep road, power, healthcare, and defence projects from stalling. The legislation covers an original ₦9.995 trillion capital envelope inside a ₦34 trillion budget; supplementary additions have since lifted the capital tally to roughly ₦13 trillion. We support the goal of finishing projects, but caution that serial rollovers corrode budget credibility.

With crude oil price largely below USD70 in recent months and even in July, we advise reviewing the 2025 Federal Budget oil benchmark at USD75 as the low price may persist further, looking at current geopolitics and tariff wars. This should indicate that we must rework our fiscal variables to manage expenditure, since revenue targets may not be achieved.

• NIGERIA’S DEBT RISES TO N149.39 TRILLION

As of March 31, 2025, Nigeria’s total public debt stood at ₦149.39 trillion, reflecting a year-on-year increase of ₦27.72 trillion or 22.8%, compared to ₦121.67 trillion recorded in the same period in 2024. This also represents a quarter-on-quarter rise of ₦4.72 trillion or 3.3%, up from ₦144.67 trillion in December 2024. The continued increase in debt stock is primarily attributed to new borrowings by the Federal Government and the depreciation of the naira, which inflated the local currency value of Nigeria’s external loans. External debt rose to ₦70.63 trillion ($45.98 billion), a year-on-year increase of ₦14.61 trillion or 26.1%, while domestic debt reached ₦78.76 trillion ($51.26 billion), marking a 20% increase from the ₦65.65 trillion recorded in Q1 2024.

Significantly, although the actual rise in external debt in dollar terms was modest, at $3.86 billion, the weakening naira exchange rate used in Q1 2025 amplified the debt in local currency terms. The Debt Management Office noted this currency exposure as a key driver of rising debt service costs. On the domestic side, the Federal Government remains the dominant borrower, accounting for ₦74.89 trillion of the domestic stock. In comparison, subnational governments and the FCT held ₦3.87 trillion, a slight decline from the previous quarter. Instruments such as bonds, treasury bills, sukuk, and green bonds continue to underpin domestic borrowing, which—while insulated from currency volatility—raises concerns about rising interest rates and the crowding out of private sector credit.

Overall, the structure of Nigeria’s debt portfolio as of Q1 2025 comprised 52.7% domestic and 47.3% external debt, showing a marginal shift from the previous year. The Lagos Chamber of Commerce and Industry remains concerned about the sustainability of the rising debt trajectory and urges the Federal Government to pursue revenue diversification, improved spending efficiency, and better debt management strategies to reduce fiscal pressure and restore macroeconomic stability.

• THE NIGERIAN TAX REFORM ACT, 2025

On 26 June 2025, President Bola Ahmed Tinubu signed into law a landmark package of tax reforms comprising the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act, and the Joint Revenue Board Act, collectively referred to as the Nigerian Tax Reform Acts. These Acts represent a comprehensive overhaul of Nigeria’s tax framework and aim to enhance revenue generation, simplify compliance, promote investment, and align Nigeria’s tax regime with global standards.

Key provisions include raising the exemption threshold for small businesses to ₦100 million in turnover and ₦250 million in assets, thereby exempting many MSMEs from Companies Income Tax, Capital Gains Tax, and the newly introduced Development Levy. The Acts consolidate multiple sectoral levies into a 4% Development Levy for mid- to large-sized firms and introduce a 5% annual tax credit over five years for qualifying capital investments through the new Economic Development Incentive (EDI).

Technology-driven reforms such as unified e-tax portals and mandatory e-invoicing will reduce administrative bottlenecks and promote transparency. VAT reforms allow full input VAT recovery and expand zero-rated essential goods, while a progressive personal income tax regime now exempts annual earnings below ₦800,000 and strengthens equity. Furthermore, establishing a Tax Ombuds Office and a codified Taxpayer Bill of Rights ensures improved trust and independent resolution of tax-related complaints.

The Acts also redefine global taxation rules for multinational and non-resident entities and adjust the VAT sharing formula to increase the allocation to states (55%) and local governments (35%), encouraging grassroots development. Overall, the Lagos Chamber of Commerce and Industry commends the reform as a strategic step towards building a more transparent, inclusive, and investment-friendly tax environment and calls on all business stakeholders to align proactively ahead of the expected implementation in January 2026.

D. SECTORAL DEVELOPMENTS

1. ICT, TELECOMS, AND CREATIVE ECONOMY

Nigeria’s digital economy continues to exhibit remarkable resilience and innovation, despite persistent infrastructure deficits, regulatory bottlenecks, and security-related disruptions, as the infrastructural vulnerabilities remain a key threat. The Association of Licensed Telecom Operators of Nigeria (ALTON) reported over 80 instances of fiber optic cuts nationwide between April and June 2025, leading to estimated service disruptions and losses exceeding ₦1.2 billion. These cuts were primarily due to road construction activities, vandalism, and theft of network infrastructure, severely affecting mobile data services in underserved regions.

Regulatory uncertainty dampens investor sentiment, especially around the Data Protection Bill, fintech licensing, and data center infrastructure classification. There has also been a delay in granting digital banking licenses to several credible fintech operators, leading to capital flight and slowed innovation.

The Federal Government’s May 2025 suspension of the Cybersecurity Levy, previously pegged at 0.5% of all electronic transactions, was a welcome intervention following intense pushback from industry stakeholders and consumer protection groups. A holistic review of the regulatory cost burden on digital enterprises must now follow this suspension.

We acknowledge the government’s renewed commitment to fast-tracking the National Artificial Intelligence Strategy, announced in April, and urge expedited stakeholder engagement on the Blockchain Adoption Roadmap, expected by Q4 2025. These frameworks are critical to positioning Nigeria as a regional leader in emerging technologies and digital sovereignty.

• OIL AND GAS SECTOR

The oil and gas sector, though traditionally Nigeria’s revenue backbone, continues to underperform due to structural inefficiencies, insecurity, and delayed policy execution. Though crude production has increased in recent months, Nigeria remains unable to meet its OPEC+ crude oil production quota of 1.8 million barrels per day (mbpd).

As of June 2025, actual crude production stood at 1.42 mbpd, constrained by:

Pipeline vandalism and illegal bunkering in Bayelsa and Rivers States.

Operational challenges at the Forcados and Bonny terminals, and delays in concluding divestment agreements between International Oil Companies (IOCs) and indigenous operators.

The average Brent crude price rebounded to $72.10 per barrel in June, up from a low of $66 in April, spurred by coordinated supply tightening by OPEC+ and geopolitical disruptions in the Red Sea and Eastern Europe.

On the domestic front, product pricing has not been stable or predictable enough to support investors’ confidence. Suppose the reduction we have recorded in recent months is sustained. In that case, we may see downward pressure on logistics and transport costs, with positive implications for food inflation and industrial productivity.

In the gas sub-sector, the Federal Government’s Midstream Gas Investment Incentives Policy, unveiled in May, includes tax holidays, duty waivers, and accelerated actions on LPG and CNG infrastructure. This is a strategic shift toward cleaner, affordable fuels, and therefore calls on the government to ensure transparent allocation of licenses, completion of major gas transport pipelines, and clarity on off-take frameworks to de-risk private investment. We strongly advocate for fully enforcing the Naira-for-Crude swap framework to ensure consistent domestic crude supply for local refiners.

On the Nigerian petroleum sector developments, the Chamber notes the declining global oil prices, inefficiency, and underperformance of government-owned refineries.  To address these, the Chamber recommends that the government consider selling or leasing all government-owned refineries to capable investors and create a favourable and competitive environment for private investment. The goal is to attract more investment in the oil refining space and to reduce the importation of refined petroleum products further.

• POWER SECTOR

Nigeria’s power sector remains intensely fragile and unable to meet industrial or household demand. The recent frequent line tripping and system outages highlight persistent instability in transmission infrastructure and generation shortfalls.

National peak generation in April 2025 was capped at 5,801.6MW. This inadequate generation is compounded by gas supply shortages and illiquidity in the electricity value chain, which continues to hinder performance.

The upward review of electricity tariff adjustment under the Multi-Year Tariff Order (MYTO) implemented in June 2025 triggered consumer dissatisfaction, notably as service quality has not improved proportionally. According to the Nigerian Electricity Regulatory Commission (NERC), only 5 out of 11 Distribution Companies (DisCos) met their minimum supply thresholds, further justifying calls for more vigorous enforcement of performance-based franchising.

We reiterate the urgent need to:

1. Accelerate Phase II of the National Mass Metering Programme.
2. Empower sub-national governments to develop independent and hybrid mini-grids.
3. To scale decentralized energy solutions, provide FX access and tax reliefs for solar mini-grid and battery storage investors.
4. With more organizations exiting the national grid to generate their power through captive power arrangements, the government should create an enabling environment where these captive power arrangements can thrive.
5. Renewable energy is the most sustainable power supply in the long run, and the government should support this with required regulation and investment.
6. We need Sub-national blueprints for attracting investments into the power sector in their states.

• AGRICULTURE AND FOOD SECURITY

Nigeria’s agriculture sector, which sustains the livelihoods of over 70% of rural dwellers, is facing severe pressure in the 2025 farming season. Escalating herder-farmer conflicts in Benue, Nasarawa, and Plateau States are disrupting cultivation, while above-normal rainfall linked to the ongoing cycle has caused flooding in Kogi, Niger, and Anambra States, damaging farmlands and displacing farming communities. Compounding these challenges are persistent distortions in fertilizer pricing and distribution. Market surveys show that staple food prices have surged by an average of 45% year-on-year.

While domestic urea production has increased due to output from the Dangote Fertilizer Plant, access remains constrained by high transportation costs, cross-border smuggling, and weak last-mile logistics in conflict-affected regions. In response, we call for urgent interventions including expedited disbursements to Special Agro-Industrial Processing Zones (SAPZs), subsidized rail transport of grains from production hubs to urban centers, and a means to improve security around farmers, farmlands, and agricultural supply chains.

• PORTS AND MARITIME SECTOR

Nigeria’s maritime and logistics sector is in urgent need of structural reform. The average cargo dwell time at Apapa Port is 26 days, far above the 5–7-day average in regional peers like Ghana and South Africa. These inefficiencies stem from a combination of persistent manual processes at Customs, bottlenecks in cargo examination, and a heavy human interface that can cause numerous stumbling blocks to cargo clearance.

Adding to the pressure, the recent 15% tariff increase by the Nigerian Ports Authority (NPA), while intended to improve infrastructure, has drawn significant resistance from freight operators already burdened by inflation and exchange rate volatility.

We therefore call for the urgent implementation of the National Single Window Project, full automation of cargo clearance, and the redeployment of mobile and digital cargo scanners at our ports. These measures are critical to reducing clearance delays, curbing corruption, and aligning Nigeria’s port performance with international standards.

That said, recent weeks have brought a few encouraging developments. Transport rates from the ports have dropped notably, by as much as 60%. Just months ago, moving goods from the ports to areas like Ikeja could cost up to ₦1 million. Today, these logistics costs have come down significantly, making road transport more affordable for shippers and businesses.

Moreover, the Nigerian Railway Corporation promotes rail as a viable alternative to road transport. Increased cargo movement by rail from Apapa Port to destinations within Lagos and as far as Ibadan is a welcome shift, and one we are closely monitoring and actively encouraging.

Nonetheless, challenges remain. Players continue to face many Customs queries on imported goods, which cause delays and, in some cases, enable abuse. This persistent issue underscores the need for deeper collaboration with Customs authorities, and the Chamber remains committed to ongoing engagement as part of our mandate and responsibility to the sector.

• REAL ESTATE AND CONSTRUCTION

The real estate and construction sector is facing a slowdown driven by multiple economic pressures. Key input costs have surged, as cement now sells for ₦9,800 per 50kg bag, while the prices of imported materials continue to rise due to foreign exchange constraints. Additionally, access to project financing remains limited as the Monetary Policy Rate (MPR) holds at a high 27.50%. Compounding the issue is a widening supply-demand mismatch in the high-end property market, contributing to increased vacancy rates in cities like Abuja, Lagos, and Port Harcourt.

To address these challenges and stimulate sectoral growth, we propose the creation of a centralized digital platform for land titling and property registration, the complete digitization of Certificate of Occupancy (C-of-O) processes across all states, and ensuring that the federally backed mortgage finance and guarantee schemes deliver on rent-to-own models for middle-income households.

• MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES)

The Micro, Small, and Medium Enterprises (MSME) segment, representing over 96% of Nigerian businesses, grapples with deep-rooted structural and macroeconomic challenges. Over 60% of small businesses report persistent issues with electricity overbilling and the absence of prepaid meters. To address these challenges, the ₦150 billion CBN SME Intervention Fund launched in April 2025 must be executed transparently, prioritizing support for export-ready and productive-sector MSMEs. Beyond financing, we emphasize the need for targeted electricity subsidies for key productive clusters such as industrial hubs.

The Nigeria First policy, recently launched, must be enforced in favour of MSMEs through inclusive procurement frameworks that link them with anchor buyers in agribusiness, manufacturing, and digital services.

CONCLUSION

Distinguished Gentlemen of the Press, you have been a worthy partner in projecting our engagement with the government towards creating an enabling investment environment for advancing the Nigerian economy and the good of all investors and economic players. The Lagos Chamber has consistently lent its voice to possible solutions to our nation’s challenges through engagements like this press conference.

Let me reiterate our call on the government to tackle the many economic issues discussed above (though not exhaustive) to deliver democratic dividends to Nigerian citizens and businesses. As a private sector advocacy group with the mandate to promote the business community’s interests, the Lagos Chamber shall continue to engage relevant government agencies, the media, and other interest groups, where and when necessary, on actionable recommendations for a thriving business community.

Thank you for listening.

MR. GABRIEL IDAHOSA, FCA

PRESIDENT,

LAGOS CHAMBER OF COMMERCE & INDUSTRY,

WEDNESDAY 23^RD JULY 2025.