LCCI decries current macroeconomic situation and calls for urgent action

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The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has expressed concern over the current macroeconomic situation in Nigeria, two years into President Tinubu’s administration. Almona noted that while the government’s policy shifts may promise long-term benefits, they have imposed hardships on businesses and households.

“Inflation remains a critical challenge, at 23.71 percent as of April 2025. Fuel subsidy removal and FX liberalisation increased prices, especially for transportation and food,” she said. The removal of fuel subsidies has tripled fuel costs, increasing business operating expenses, particularly logistics, agro-processing, and retail SMEs.

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Almona lamented that manufacturing and agriculture, the two major drivers of the economy, continue to struggle due to high production costs, insecurity, and logistical inefficiencies, limiting business competitiveness. She also noted that despite FX reforms, businesses still face challenges accessing foreign exchange for imports, and many continue to price goods defensively due to volatility concerns.

The LCCI DG highlighted that public debt has risen to₦144.67 trillion, with debt service consuming over 90 percent of federal revenue. She urged the government to consider cheaper sources of debt and deploy debt into the real economy to subsidise production.

“Inflationary pressures have reached historic highs, driven by high energy costs, food insecurity, FX instability, and weak industrial productivity,” Almona said, adding that policy coordination concerns are growing due to divergence between monetary and fiscal policies.

Listing the numerous challenges businesses face, Almona called for enhanced policy coordination, improving ease of doing business, scaling targeted SME support, improving infrastructure, and expanding social safety nets. She urged the government not to celebrate yet but swing into action to address these challenges, which have led to business closures, job losses, and reduced output across multiple sectors

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