The Lagos Chamber of Commerce and Industry has called on the federal government to prioritise investments in agro-processing as a strategy to grow non-oil exports, strengthen foreign exchange earnings and reduce Nigeria’s exposure to external shocks.
In a statement, the Director General of the LCCI, Dr Chinyere Almona Kupoluyi, said Nigeria must urgently expand non-oil revenue sources, improve tax efficiency and compliance, and rein in recurrent expenditure as global economic conditions remain uncertain.
She identified commodities such as cocoa, cashew, palm oil and sesame as areas where Nigeria enjoys a clear comparative advantage but continues to underperform due to weak processing capacity, limited competitiveness and poor export infrastructure.
Data from the National Bureau of Statistics show that the non-oil sector accounted for more than 96 percent of Nigeria’s Gross Domestic Product in the third quarter of 2025. However, agriculture recorded only a modest recovery, highlighting the persistent gap between raw production and value addition.
Although food inflation eased to 10.84 percent in December 2025 on the back of improved supply conditions, the LCCI noted that structural challenges around processing, storage and export logistics remain unresolved. According to the Chamber, strengthening agro-processing would not only boost non-oil export earnings but also support exchange rate stability by easing pressure on foreign reserves.
noted that global economic growth stood at an estimated 2.7 percent in 2025 and is expected to remain modest in 2026. She warned that trade fragmentation, tighter financial conditions and policy uncertainty could further constrain export earnings for developing economies, making Nigeria’s continued reliance on crude oil revenues increasingly risky.
She stressed that Nigeria must accelerate the transition from exporting raw agricultural commodities to producing higher-value processed goods, particularly by leveraging opportunities under the African Continental Free Trade Area to scale non-oil exports across the continent.
Nigeria’s external reserves rose to $45.5 billion in 2025, supported by improved transparency in the foreign exchange market. However, Kupoluyi cautioned that sustaining stability would depend on diversifying export revenues beyond oil, especially as borrowing costs remain high and liquidity tight.
With the Monetary Policy Rate held at 27 percent and cash reserve requirements still elevated, access to credit remains a major constraint for agribusinesses and export-oriented small and medium enterprises. The LCCI urged policymakers to improve access to finance, strengthen standards compliance, and provide better trade intelligence to support agribusiness growth.
The Chamber also called for reforms in port efficiency, customs processes and infrastructure governance to reduce logistics costs and enhance Nigeria’s competitiveness under the AfCFTA framework.
As global demand growth slows, the LCCI said Nigeria’s ability to convert agricultural output into value-added exports will determine whether agriculture becomes a stabilising force for the economy or remains vulnerable to external shocks.
