The Lagos Chamber of Commerce and Industry has reiterated its call on the government to tackle many economic issues it has identified and discussed, so as to deliver democratic dividends to Nigerian citizens and businesses.
LCCI President, Gabriel Idahosa, made the call, in his address during the Chamber’s State of Economy Press Conference, on Thursday.
Noting that the issues discussed were not exhaustive, Idahosa pointed out that LCCI as a private sector advocacy group with the mandate to promote the business community’s interests, would continue to engage relevant government agencies, the media, and other interest groups, where and when necessary, on actionable recommendations for a thriving business community.
In his sectoral speech, with respect to food security and food inflation, Idahosa revealed that Nigeria faces unprecedented food security and inflation challenges, with recent data highlighting the urgent need for concerted actions.
He added that despite some improvements, food prices remain high, and millions of Nigerians continue to experience food insufficiency, saying that the country needs to scale up food processing to meet the demand for finished food products, some of which are hitherto being imported.
Idahosa related: “The Special Agro-Industrial Processing Zones (SAPZ) initiative should be well-equipped to support the production of finished food products across the country.
“Several factors contribute to Nigeria’s food security crisis. Economic hardship, driven by the devaluation of the Naira and the removal of fuel subsidies, has increased living costs and food prices. Inflation remains a significant issue, making basic food items unaffordable for many households.
“We call on federal agencies to work closely with the states to control the expected floods projected to disrupt many states this year. We should be proactive in handling flood alerts to prevent the destruction of farmlands and loss of crops. We reiterate our call on the government to use the period of the declared national emergency to deal with hindrances to agricultural production nationwide”.
Similarly, the Chamber’s President lamented that the Micro, Small, and Medium Enterprises (MSMEs) are grappling with severe operational challenges, including insecurity and unreliable power supply, adding that small businesses continue to battle with poor power supply and high electricity tariffs.
This, Idahosa disclosed, further compounded by unresolved meter-related issues, including unrefunded payments for meters that are now supposed to be free and uncredited balances during meter transitions.
According to him, many MSMEs have shut down or reduced their staff strength with rising materials and energy costs, calling on the relevant authorities for immediate government intervention – through electricity subsidies, proper refund mechanisms, and regulatory clarity on energy billing – to protect the backbone of Nigeria’s economy.
The power sector, by LCCI assessment, scored low marks.
Idahosa indicated that businesses and households have continued to suffer under a “double whammy” of generating their own electricity with expensive fuels and paying higher tariffs on electricity, even as we experience a weak power supply.
Due to debt overhang, he affirmed that the weak financial position of the DISCOs and GENCOs has continued to overwhelm their performance, adding that the Chamber has continued to call on the government to sustain its reforms in the sector through an aggressive metering programme, attracting more investment into the renewable energy space and creating an enabling environment for the states to drive electricity generation in their respective domains.
He restated: “Without fixing the power sector to perform at optimal levels, our aspiration to achieve a $1 trillion economy may remain a dream with no reality. We urge the government to remain committed to commercial partnerships signed with various renewable energy investors by granting them required licenses, providing a robust and competitive regulatory environment, and driving local content provisions in those energy projects”.
Idahosa however declared that with the states now empowered to generate power in their domains, we expect to see more states becoming aggressive like we already see in a few states, hoping that more states depending less on the national grid, hence, “we would generate more power nationwide and improve power supply in the medium to long term”.
Speaking on Maritime, LCCI indicated that the sector and freight forwarding operators have raised significant concerns about the cost of operations at the ports and how this hinders trade facilitation and increases burdens on businesses.
“In the last quarter, stakeholders faced two significant cost burdens: a 4% levy introduced by the Nigeria Customs Service and a 15% hike in service charges by the Nigerian Ports Authority (NPA). While the Customs levy has since been suspended, the NPA’s increase remains in place. These actions have triggered a ripple effect – Terminal Operators, Shipping Companies, and other service providers have adjusted their prices upwards, compounding the financial strain on importers, exporters, and the broader business community.
“Another major concern is the manipulation of the electronic truck call-up system (Eto), where it is alleged that higher-paying trucks are given priority, thereby increasing haulage costs and creating unfair competition. Additionally, the recent 15% tariff increase by the Nigerian Ports Authority (NPA), without a phased implementation strategy, is expected to exacerbate the financial burden on importers and manufacturers. We demand a more structured, phased rollout and a full audit of tariff components—especially those being charged in U.S. dollars, which increases forex exposure for local businesses.
“Equally critical is the urgent need to deploy more containers and cargo scanners at the ports. These should be managed by the Terminal Operators and integrated into real-time offloading procedures. This strategy will significantly reduce cargo dwell time, lower demurrage costs, and enhance the vessel turnaround. This will lead to increased cargo throughput, quicker goods clearance, and higher government revenue. Most importantly, only containers flagged during scanning would undergo a physical examination, reducing human interference and curbing corruption. It will also diminish the need for the current excessive physical presence of multiple government agencies – an outdated practice not befitting a 21st-century port system”, established Idahosa.
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LCCI advocated for the expedited implementation of the National Single Window Project, which, if executed effectively, promises to streamline port operations, enhance revenue collection, and facilitate the ease of doing business across the port value chain.
Still, the Chamber posited that the Federal Government’s initiative to overhaul Nigeria’s tax system through the proposed Tax Reform Bill is largely a necessary, but not a sufficient condition to achieve the 18% target by the 2025 budget, as this comprehensive reform aims to enhance revenue generation, streamline tax administration, and foster economic growth.
It contended that Nigeria’s tax-to-GDP ratio stands at 7.9% in 2022, significantly below the African average of 16.0%, adding that the disparity underscores the need for a more efficient tax system to support national development.
Idahosa reiterated that it is imperative that government agencies refocus their mandates from revenue collection to robust regulation and facilitation, maintaining that overly aggressive revenue-driven posture is detrimental to stakeholders, especially SMEs, importers, and exporters, often pushing businesses to the brink of closure.
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