64th Independence: LCCI highlights challenges facing Nigeria’s economy

New LCCI President, Gabriel Idahosa

The Lagos Chamber of Commerce and Industry has called on the Federal Government to implement bold measures to stabilise the economy and ensure sustainable growth as it celebrates its 64th Independence Day anniversary.

In a statement on Monday, the LCCI president, Gabriel Idahosa, reflected on Nigeria’s challenge with being heavily oil-reliant and called for revenue diversification, infrastructure development, fiscal discipline and debt management, human capital development and security as the sustainable path.

Idahosa noted that Nigeria has yet to fully harness the benefits that should accompany a major oil-producing nation as he highlighted the importance of non-oil sectors including agriculture, solid minerals, and gas.

He commended Nigeria’s economic performance, especially the Gross Domestic Product growing by 3.19 per cent in the second quarter of 2024 and the oil sector’s 10.15 per cent growth in the same period, but decried insecurity and oil theft.

“Oil production remains suboptimal due to insecurity and oil theft,” Idahosa said. “To address these issues, the government must proactively address the recent challenges bedevilling the oil and gas sector.”

The chamber lamented the sluggish growth in agriculture, manufacturing, and trade sectors, hampered by insecurity, exchange rate volatility, and high interest rates, despite the non-oil sector’s 2.80 per cent growth which accounted for 94.30 per cent of the total GDP.

Idahosa highlighted Nigeria’s weak infrastructure, policy inconsistencies, and high inflation as investors’ major concerns and the impact of insecurity on agricultural production which drives up food prices.

“The growth of 1.41 per cent recorded for agriculture, 1.28 per cent for manufacturing, and 0.70 per cent for trade are comparatively low compared to other sectors that grew above four per cent. This also indicates the threats facing these sectors that power Nigeria’s real sector.

“The woes in these two sectors are responsible for the frightening rise in our inflation rate. Real sector activities may be constrained in the coming months with the excruciating burden of worsening insecurity, exchange rate volatility, high interest rates, and rising debt service,” the LCCI president added.

Idahosa stressed the need for government intervention to address insecurity, stabilise the power sector, and promote renewable energy adoption.

He also urged the Federal Government to tackle policy inconsistencies in taxes, import restrictions, and foreign exchange market operations.