The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to develop a comprehensive industrialization strategy to boost local manufacturing capacity, among other policies.
In a statement signed by the LCCI Director General, Dr. Chinyere Almona, FCA, the chamber suggested policies to the federal government that can help the country sustain growth in Gross Domestic Product (GDP)
Nairametrics reported that Nigeria’s GDP recorded an overall growth of 3.40% in 2024, an increase from 2.74% in 2023.
According to the latest data from the National Bureau of Statistics (NBS), the GDP grew in the fourth quarter of 2024 by 3.84% year-on-year, marking an improvement from 3.46% recorded in the same corresponding quarter of 2023
Nairametrics reported that the growth was driven by the non-oil sector, which accounted for 94.49% of the total GDP, while the Q4 growth was driven by the services sector.
LCCI expresses concern over poor performance of manufacturing, other sectors
The LCCI expressed concern over the poor performances of the manufacturing and agriculture sectors, among others.
The DG, in his statement, argued that the country’s reliance on trade and services, at the expense of industries is not healthy for the economy.
“While the GDP growth figures indicate a positive trajectory, they raise critical concerns regarding real productivity and economic stability. The disproportionate reliance on the services sector, with declining contributions from agriculture and manufacturing, poses sustainability risks.
“Economic growth driven largely by trade and finance must be complemented by robust industrial and agricultural expansion to create quality jobs, enhance value addition, and ensure food security,” he noted.
Nairametrics reported that the manufacturing sector’s contribution declined to 8.07% from 8.23% in Q4 2023. The LCCI said this is due to “persistent structural constraints.”
The chamber also acknowledged the limited contribution of the oil sector, although it recorded a slight improvement in the last quarter.
“Oil sector volatility continues to expose the economy to external shocks, underscoring the urgency of diversifying the revenue base,” it noted.
What FG must do to achieve sustainable, inclusive GDP growth
The chamber advised the Federal Government to “address structural bottlenecks that hinder productivity across key sectors,” in order to achieve “a sustainable and inclusive growth trajectory.”
It urged the government to consider the following to boost the economy:
- A comprehensive industrialization strategy should be developed to boost local manufacturing capacity.
- Policies that incentivize domestic production, enhance the ease of doing business and facilitate access to finance for small and medium enterprises (SMEs).
- Increased investment in mechanization, irrigation, and improved seed varieties is essential to boost agriculture and food security.
- Policies to enhance rural infrastructure, market access, and value chain development should be pursued aggressively.
- Address Nigeria’s infrastructure deficit, particularly in power, roads, and ports,
- Expand public-private partnerships (PPPs) to bridge financing gaps in critical infrastructure projects.
- Ensure exchange rate stability for investor confidence and economic planning. The Central Bank of Nigeria (CBN) should continue to adopt policies that facilitate liquidity, stabilize the naira, and encourage capital inflows.
- Address insecurity, particularly in agrarian regions, and intensify efforts to curb banditry, kidnapping, and other threats that deter investments in agriculture.
