From Rotimi Asher, Lagos
Lagos Chamber of Commerce & Industry, LCCI, has identified strategic priorities for Nigeria’s economic recovery and growth in 2025.
In its New Year statement made available to journalists, the Chamber acknowledged the resilience of Nigerians and the business community in navigating significant economic challenges in 2024, including inflationary pressures, volatile exchange rates, and high production costs.
Reflecting on 2024, LCCI highlighted the nation’s tumultuous economic landscape, shaped by the removal of fuel subsidies, rising inflation, and tight monetary policies.
The Chamber noted that inflation climbed from 22.79 per cent in mid-2023 to 34.60 per cent by November 2024, driven by increases in food prices, transportation costs, and energy expenses.
Core inflation rose to 28.75 per cent during the same period. GDP growth for 2024 was modest at an estimated 3.46 prr cent, hindered by structural inefficiencies, insecurity, and global headwinds.
According to the Chamber, globally, the economic landscape is poised for transformation, influenced by shifts in U.S. leadership, trade policies, and energy strategies.
Domestically, Nigeria faces persistent challenges, including high inflation, foreign exchange scarcity, and low foreign direct investment, FDI’. Capital inflows in Q2 2024 stood at $2.6bn, a 22.85 per cent decline from the previous quarter, while FDI contributions were a mere 1.2 per cent of total investments.
On sectoral performance and outlook, the Chamber provided insights into key sectors:
On agriculture the Chamber noted that despite contributing 28.65 per cent to GDP at its peak, the sector faced challenges from insecurity, high input costs, and climate variability. Growth in 2025 is expected to benefit from government initiatives aimed at enhancing food security and value chains.
On manufacturing LCCI said the sector, contributing 8.9 per cent to GDP, struggled with high costs, energy shortages, and foreign exchange volatility. It noted that moderate growth is anticipated in 2025, driven by improved infrastructure and local production policies.
While on construction and real estate it said contributing 3.35 per cent and 5.43 per cent to GDP respectively, these sectors saw growth constrained by high material costs and financing barriers.
The recently launched Real Estate Investment Fund is expected to stimulate growth in 2025.
Speaking on public debt and fiscal policy, LCCI noted that Nigeria’s public debt reached an estimated N134.3tn, $91.3bn, in 2024, driven by budget deficits and rising debt servicing costs.
Debt servicing consumed nearly 162 per cent of government revenue, limiting fiscal space for development. LCCI emphasized the need for fiscal discipline and innovative revenue strategies in 2025.
The Chamber outlined six key areas for government to focus in 2025 which include addressing inflation and ensuring price stability, strengthening fiscal sustainability and effective debt management, improving the ease of doing business to attract investment, tackling unemployment and empowering youth, enhancing food and energy security and advancing trade and investment to diversify revenue sources.
With GDP growth projected at 3.2 per cent by the IMF, LCCI expressed cautious optimism for 2025. Inflation is expected to ease as monetary policies take effect, and trade, agriculture, and manufacturing are poised to drive job creation. However, achieving these goals will require bold reforms, public-private partnerships, and targeted investments in critical sectors such as telecommunications, oil and gas, and renewable energy.
LCCI President Gabriel Idahosa called for collaboration between the private and public sectors to unlock sustainable growth and improve the well-being of Nigerians. “Businesses must embrace innovation, digital transformation, and sustainability to overcome challenges and seize opportunities in 2025,” he said.
