The Lagos Chamber of Commerce & Industry (LCCI) has listed major strategic areas for Nigeria’s economic recovery and growth in 2025.
In its New Year statement released by President of LCCI, Mr. Gabriel Idahosa made available to Blueprint the Chamber acknowledged and commend 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, he said the Nigeria’s economic landscape continues to be shaped by a confluence of challenges that impact major indicators as the nation grapples with an unstable currency compounded by foreign exchange scarcity, which creates uncertainties for businesses and investors.
He said the removal of subsidies on fuel resulted in a significant spike in inflation, adding that since the removal, inflation has increased from 22.79 per cent in June 2023 to 34.60 per cent in November 2024.
He said the increase was because fuel is integral to every facet of life, subsidy removal has been a major driver of high food prices, transportation, energy costs, and, generally, the cost of living.
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 noted that notwithstanding that the agricultural sector contributing 28.65 per cent to GDP, the sector faced challenges of insecurity, high input costs, and climate variability. He said 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 they are 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.
He however said that 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.
It stated that 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.
