LCCI STATEMENT ON WORLD BANK DEVELOPMENT UPDATE ON NIGERIAN ECONOMY
BUILDING A RESILIENT ECONOMY THROUGH STRUCTURAL REFORMS AND STRATEGIC LIBERALIZATION
The Lagos Chamber of Commerce and Industry (LCCI) commends the Federal Government for bold economic reforms that have begun to stabilize Nigeria’s macroeconomic environment. Measures such as subsidy removal, exchange rate unification, and fiscal tightening have laid the groundwork for renewed investor confidence and growth reflected in the 4.6% Q4 2024 GDP expansion and 3.46% annual growth. However, these gains must be deepened through inclusive, job-creating strategies that support local industries and uplift millions out of poverty.
Despite encouraging macro indicators, many businesses, especially MSMEs and manufacturers, face harsh realities, including high inflation, volatile exchange rates, energy cost spikes, and limited access to credit and infrastructure. LCCI urges policymakers to convert macroeconomic stability into real economic relief by targeting support to struggling sectors, improving infrastructure, and strengthening consumer purchasing power.
The World Bank rightly critiques Nigeria’s protectionist trade stance, showing the benefits of strategic liberalization: increased customs revenue, reduced poverty, lower living costs, and more efficient markets. LCCI supports a phased trade reform agenda, 12–36 months by sector, paired with support for local industries, modernized customs infrastructure, and expanded social safety nets. Such reform aligns with AfCFTA goals and enhances Nigeria’s competitiveness in intra-African trade.
Under this administration, subsidy savings and FX unification reforms have improved fiscal sustainability and sparked investments. Yet, currency devaluation and inflation have heavily impacted SMEs and consumers. The accurate measure of reform success must now include job creation, enterprise growth, and rising living standards. Emerging opportunities exist in agribusiness, renewable energy, technology, logistics, and clean energy infrastructure. To transition from stabilization to shared prosperity, Nigeria must address structural barriers, promote open markets, enhance human capital, and align policies with global and regional competitiveness.
Thus, Nigeria faces a critical choice between a restrictive, high-cost economic model and one that embraces strategic openness, fiscal efficiency, and private sector-led growth. The LCCI advocates for the latter, reforms that stabilize the economy, empower industries, reduce poverty, and foster long-term prosperity. With inflation still at a double-digit rate of 23.71% as of April 2025, the threat of inflationary pressures on economic stability and growth remains. We must stay the course on ensuring that the ongoing reforms in our food production chain are sustained until we attain food security for the Nigerian population.
We support the government in thinking big and acting out of the box in the face of uncertainties and disruptions. We, however, wish to urge the government to remain focused on the reforms, introduce phased increases in levies, and consult more with critical stakeholders to ensure improved implementation of policies. In dealing with the issues raised in the latest World Bank Update, one common denominator is boosting the productive sectors to create jobs, rev up revenues, and reduce dependence on imported goods.
Dr. Chinyere Almona, FCA
Director-General
Lagos Chamber of Commerce & Industry
Friday 16th May 2025
