Two years into President Bola Tinubu’s administration, the Lagos Chamber of Commerce and Industry (LCCI) has raised serious concerns over the prevailing macroeconomic conditions in Nigeria. According to its Director-General, Dr. Chinyere Almona, while the government’s sweeping economic reforms may offer long-term benefits, they have so far brought hardship to businesses and households—particularly small and medium-sized enterprises (SMEs), which form the backbone of the economy.
Speaking in Lagos, Almona noted that sectors like manufacturing and agriculture continue to suffer under the weight of high production costs, insecurity, and poor logistics, eroding competitiveness and stalling growth. She explained that inflation, now at 23.71 percent as of April 2025, remains a key issue, worsened by the removal of fuel subsidies and the liberalisation of foreign exchange markets.
“The removal of fuel subsidy may have freed up an estimated $7.5 billion annually, but it also tripled fuel costs,” she said. “This may help balance public finances, but it significantly raises operating costs for businesses, especially SMEs in logistics, agro-processing, and retail.”
Despite the central bank’s foreign exchange reforms, Almona highlighted that many businesses still struggle to access forex at affordable rates. This, she said, has forced companies to price goods defensively amid continuing volatility. She further pointed out that public debt has risen to ₦144.67 trillion, with over 90 percent of federal revenue now being consumed by debt servicing. She urged the government to seek cheaper borrowing alternatives and to channel funds into productive sectors to subsidise output rather than just consumption.
The LCCI chief also criticised the apparent disconnect between monetary and fiscal policies. While the central bank battles inflation through tighter policies, the government continues expanding recurrent spending and borrowing, a divergence that, according to her, is undermining policy effectiveness and weakening investor confidence.
Almona listed several issues plaguing Nigerian businesses, including limited access to affordable credit due to high interest rates, erratic electricity supply, surging energy costs, multiple taxation, regulatory red tape, foreign exchange scarcity, import restrictions, and pervasive insecurity. These, she said, are leading to widespread business closures, job losses, and reduced output across vital sectors.
She urged the government to stop celebrating premature gains and instead focus on urgent economic action. According to her, what is needed now is a coherent policy framework that enhances collaboration between fiscal and monetary authorities, improves the ease of doing business, scales up targeted SME support, strengthens critical infrastructure, and expands social protection systems for the most vulnerable.
As Nigeria navigates a turbulent economic landscape, the LCCI insists that without bold, coordinated, and inclusive policy responses, the ongoing reforms may end up deepening the socioeconomic divide instead of narrowing it.
