Tag: LCCI

• Chamber calls for enhanced budget implementation

The Lagos Chamber of Commerce & Industry (LCCI) has stated that the 2026 Budget presents a credible opportunity to move Nigeria from recovery to expansion.

In an address on the state of the economy, President, Lagos Chamber of Commerce & Industry (LCCI), Leye Kupoluyi said the success of the budget would depend less on size of allocations but more on execution discipline, capital efficiency, and sustained support for productive sectors.

He said LCCI remains committed to working with the government to ensure the budget delivers stronger growth, more jobs, and a more competitive Nigerian economy.

He expressed concerns about what he called Nigeria’s historically weak budget implementation capacity that is likely to be further strained by the operation of multiple budget cycles within a single year. 

According to him, efficient budget implementation has important implications for fiscal coordination, transparency, and effective project execution.

He identified agriculture, agro-processing, manufacturing, infrastructure, energy, and human capital development as key growth drivers in 2026 but added that  unlocking these sectors will require decisive execution, scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers, accelerating infrastructure delivery through PPPs, sustaining oil and gas sector reforms, and aligning education and skills development with private-sector needs.

Read Also: LCCI warns over influx of livestock products

Also, he cautioned the government on the continued rise in the nation’s debt to N152.40 trillion, reflecting a year-on-year increase of N18.10 trillion or 13.5 percent, compared to N134.30 trillion recorded in the same period in 2024.

He said: “This also represents a quarter-on-quarter rise of N3.01 trillion or 2.0 percent, up from N149.39 trillion in March 2025. This consistent upward trajectory in Nigeria’s debt stock reflects both fresh borrowings and the impact of a depreciating exchange rate on external debt obligations. External debt rose to N71.85 trillion ($46.98 billion), a year-on-year increase of N8.77 trillion or 13.9 percent, while domestic debt reached N80.55 trillion ($52.67 billion), marking a 13.1 percent increase from the N71.22 trillion recorded in Q2 2024. Available reports suggest that once the National Assembly approves the outstanding loan requests currently under review, the nation’s total debt stock could surpass $190 billion”.

Furthermore, he said the World Bank has attributed the rise in public debt stock to the weak fiscal position of the Federal Government, with the deficit widening to 3.8percent as independent revenues fell and spending pressures from wages and interest costs mounted. He however, noted that Nigeria’s public debt remains sustainable, but subject to budgetary vulnerabilities.

In view of the widening debt profile he urged the government to intensify efforts to expand non-oil revenue, improve tax efficiency and compliance, and curb recurrent expenditure.

Strengthening fiscal discipline, closing leakages, and enhancing public financial management will be crucial to sustainably funding national development priorities without excessive dependence on borrowing. A more strategic balance between revenue generation and prudent debt accumulation is essential to safeguarding economic stability and long-term growth, he stated.

On the proposed sale of National Assets, he stressed that though the Federal Government projected N189 billion in revenue from asset sales and privatisation as part of a N25.27 trillion financing plan to bridge the fiscal gap, specific assets were not listed. He said from their sources the proposed transactions span oil and gas, power, transport, industry, real estate, and other strategic sectors, aimed at monetising public holdings and reducing direct state involvement in commercial activities.

“LCCI acknowledges the approach as a means of easing fiscal pressure and improving efficiency, provided the process is transparent, competitively executed, and supported by strong governance frameworks. We urge the publication of a clear asset list, timelines, and use of proceeds, and recommend that the funds be reinvested in infrastructure, human capital, and productivity-enhancing projects”.

Above all, the Chamber stresses that privatisation should form part of a broader structural reform agenda, not merely a short-term financing measure, to ensure sustainable growth and long-term national value, he added.

On delayed payment to contractors, he noted the provision of Federal N1.7 trillion in the 2026 budget reflects a formal acknowledgment of persistent payment delays to contractors. This provision he said aims to settle verified 2024 capital project liabilities and ease the financial distress faced by indigenous contractors.

However, he maintained that recurring backlogs highlight structural issues such as weak revenue performance and delayed capital releases. He called for sustained fiscal discipline and timely cash backing to restore contractor confidence and enable infrastructure delivery.

While commending the government on local production of LPG, he said local refineries and gas processing plants supplied 87 percent of Nigeria’s cooking gas (LPG) demand in 2025 representing one of the most consequential structural shifts in Nigeria’s downstream energy landscape in decades.

According to him this is not merely an incremental improvement; it is a decisive break from chronic import dependence and a clear signal that domestic energy industrialization is finally gaining scale, credibility, and momentum.

The sharp decline in LPG imports delivers meaningful foreign exchange relief, easing pressure on the naira and improving the balance of payments. Local production allows scarce FX to be redirected toward manufacturing, infrastructure, and economic growth he stated.

Producing 87 percent of cooking gas locally is a practical demonstration that import substitution works when driven by infrastructure and market discipline, offering a replicable model for Nigeria’s broader economic transformation, he noted.

On the new tax regime, Kupoloyi said after due consideration of the implications of the new tax laws for businesses, we call on companies to continue their operations and remain formal with the tax authorities as implementation commences.

“We see the process as an essential reform to update the fiscal framework, enhance competitiveness, and increase revenue. However, successful implementation requires clarity, transparency, collaboration, and business-focused execution to achieve economic benefits without stifling growth”.

The Lagos Chamber of Commerce and Industry (LCCI) has elected Leye Kupoluyi as its President and Chairman of Council.

The Director General, LCCI, Dr Chinyere Almona, made this known yesterday at the chamber’s 137th Annual General Meeting.

Almona disclosed that his emergence follows the completion of Gabriel Idahosa’s tenure, during which he served the chamber with distinction and excellence.

She described Kupoluyi as an accomplished professional with an exceptional record of leadership, dedication, and service across engineering services, trade promotion, and industry development.

Read Also: LCCI mulls revival of printing sector

She added that his election showed LCCI’s recognition of his unwavering commitment to its ideals, its policy advocacy efforts, and the promotion of a thriving environment for Nigerian businesses.

“We are delighted to welcome Engr. Kupoluyi as president of the LCCI.

“As a council member and key officer of the chamber, he has consistently contributed his expertise and provided valuable insights during strategic deliberations.

“We are confident that his presidency will further strengthen the chamber’s role as a leading advocate for sound business policies and practices.

“He will also advance the interests of our members and the broader business community,” she said.

Lagos Chamber of Commerce and Industry (LCCI) has warned against the continued influx of cheaper foreign livestock products into the country.

President, Lagos Chamber of Commerce and Industry (LCCI), Mr Gabriel Idahosa in an interview, said the development was undercutting local producers, reducing patronage, and forcing many small agribusinesses to shut down.

He attributed the reason for the continued influx to the fact that the items were often priced lower due to stronger foreign currencies and lower production costs.

Idahosa, however, noted that the development compounded pressure on Nigeria’s foreign exchange reserves, already strained by rising food imports, which hit N1.18 trillion in second quarter of 2025, up 33 per cent year-on-year.

“According to recent National Bureau of Statistics (NBS) data, Nigeria imported N815.03 billion worth of livestock and related-products in the first half of 2025, while exports stood at N51.57 billion, resulting in a N763.47 billion trade deficit.

“Between 2020 and mid-2025, total livestock imports reached N4.46 trillion, up from N454.52 billion in 2020 to N1.49 trillion in 2024.

Read Also: Inside Ekiti’s silent livestock revolution

“These figures underscore Nigeria’s dependence on external supply to meet both domestic and industrial demand.

 “We have the technical knowledge and skills, but we are not investing enough to boost the local economy,” he said.

The LCCI president said the country’s weak production base mirrored structural inefficiencies.

He noted that average milk yield from local cows remained below 1.5 litres per day, while the country produced only about 600,000 metric tonnes of milk annually, against a demand exceeding one million tonnes.

Idahosa said Nigeria spends over $1.5 billion yearly on dairy imports, according to the report from the Federal Ministry of Livestock Development (FMLD).

He added that in spite of available expertise, poor investment, weak infrastructure, insecurity, and policy inconsistency continued to constrain the livestock value chain.

He urged government and private stakeholders to scale up investment in modern ranching, feed systems, cold-chain logistics, and breeding infrastructure.

 “Government should also set measurable targets, such as halving livestock imports within five years.

 “The goal should not be import comfort, but export confidence. Nigeria should be exporting livestock and dairy derivatives across West Africa, not financing jobs and production abroad,” he said.

The Lagos Chamber of Commerce and Industry (LCCI) have called for greater private sector collaboration, innovation and investment to drive sustainable transformation in Nigeria’s tourism sector.

The call was made as the Chamber joined the global community to commemorate World Tourism Day 2025, themed “Sustainable Transformation in Tourism.”

The event convened stakeholders from hospitality, agribusiness, and the creative industries to explore new growth opportunities for Lagos and Nigeria at large.

In his welcome remarks,    Vice Chairman of the LCCI Hotel and Tourism Sector and Secretary of the Board of Trustees, Eko Tourism Foundation, Dr. Tunde Lawrenson, stressed the importance of partnerships and investment as vehicles for sustainability.

    LCCI President, Gabriel Idahosa, noted that while challenges remain in the sector, collaboration among private players remains a panacea to unlocking tourism’s potential. He cautioned against over-reliance on government and urged stakeholders to leverage Nigeria’s globally recognized creative industry to boost tourism. He also downplayed insecurity narratives, pointing out that several thriving global destinations contend with similar challenges.

    In his keynote address, former President of the Association of Tourism Practitioners of Nigeria, Comrade Hassan Zakari, emphasized deliberate investment in infrastructure and agri-tourism as essential for long-term industry growth.

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    Other contributors included Pastor (Dr.) Olarewaju Saba, MD/CEO of St. Chris Properties & Investment Ltd; Dr. Amb. Daniel Olabintan, Chairman of the Elders Group, Travel and Tour; and Mr. Aderoju Owosanya, representing the Chairman/CEO of Xtralarge Farms and Resorts.

    An interactive panel session allowed participants to engage directly with industry leaders on pressing issues such as youth participation, infrastructure, and the promotion of local tourism.

    At the close of the event, a communiqué outlined resolutions such as increasing Gen Z and youth involvement in tourism development, promoting local tourism through music, film, and cultural heritage, strengthening partnerships across agriculture, hospitality, and the creative economy.

    With Lagos as a focal point, this year’s celebration spotlighted agri-tourism and infrastructure investment as critical to repositioning Nigeria’s tourism industry for sustainable growth and global competitiveness.

• Says automation will fix port inefficiencies

• Urgess National Single Window implementation

Nigeria’s power sector remains intensely fragile and unable to meet industrial or household demand, the Lagos Chamber of Commerce & Industry (LCCI) President, Gabriel Idahosa. 

He said the recent frequent line tripping and system outages highlight persistent instability in transmission infrastructure and generation shortfalls.

It also called on the Federal Government to urgently implement the National Single Window Project, fully automate cargo clearance, as well as redeploy digital and mobile cargo scanners across the country’s ports to address lingering inefficiencies in the maritime sector.

Idahosa, spoke at the Chamber’s third quarter press briefing in Lagos yesterday. He warned that the country’s port operations will continue to lag behind its regional peers, worsening the cost of doing business and eroding trade competitiveness.

He said: “Average cargo dwell time at Apapa Port is 26 days, far above the five to seven days observed in Ghana and South Africa.

“These delays are unacceptable. The urgent implementation of the National Single Window Project, full automation of cargo clearance, and redeployment of mobile and digital scanners are critical to reducing clearance time, curbing corruption, and aligning our port performance with global standards.”

Read Also: Nigeria’s reforms have mixed results, says LCCI

The LCCI boss also noted that the national peak generation of electricity in April 2025 was capped at 5,801.6Mw. This inadequate generation according to him is compounded by gas supply shortages and illiquidity in the electricity value chain, which continues to hinder performance.

He lamented that the upward review of electricity tariff adjustment under the Multi-Year Tariff Order (MYTO) implemented in June 2025 triggered consumer dissatisfaction, notably as service quality has not improved proportionally. Quoting sources he said the Nigerian Electricity Regulatory Commission (NERC), he disclosed that only five out of 11 Distribution Companies (DisCos) met their minimum supply thresholds. This he said further justifies calls for more vigorous enforcement of performance-based franchising.

He canvassed the urgent need to accelerate Phase II of the National Mass Metering Programme, empower sub-national governments to develop independent and hybrid mini-grids, scale decentralized energy solutions, provide FX access, tax reliefs for solar mini-grid and battery storage investors.

He said Nigeria’s macroeconomic environment remains at a crossroads, as reform efforts are frequently slowed by delays and resistance, despite some progress in fiscal consolidation and digital governance.

Highlighting a notable 2025 policy achievement, Idahosa lauded the passage of the Nigeria Tax Act 2025, which consolidated seven federal taxes into a unified system, eliminated redundant levies, and mandated digital tax reporting via a centralised platform.

“These measures will ease the burden on MSMEs and digital service providers,” he noted. “But to ensure success, enforcement must be guided by clear regulations, broad stakeholder engagement, and sustained taxpayer education.”

On infrastructure, the LCCI President expressed concern over the fragile state of the nation’s power sector, frequent grid failures, and lack of reliable electricity for both industry and homes. He urged swift implementation of Phase II of the National Mass Metering Programme and support for sub-national governments to develop independent or hybrid mini-grids.

In the tech sector, Idahosa acknowledged ongoing government support for the National Artificial Intelligence Strategy and called for accelerated work on the Blockchain Adoption Roadmap.

“These frameworks are critical to positioning Nigeria as a regional leader in emerging technologies and digital sovereignty,” he said.

On the fiscal front, Idahosa warned of the nation’s unsustainable debt trajectory and called for enhanced revenue diversification, smarter spending, and stronger debt management strategies to ease macroeconomic pressures.

He also lamented the slowdown in the real estate and construction sectors, attributing it to surging input costs and foreign exchange constraints.

“We propose the complete digitisation of Certificate of Occupancy (C-of-O) processes across all states. This will help unlock mortgage finance and make rent-to-own schemes more viable for middle-income Nigerians,” he said.

Idahosa stressed that only deliberate, coordinated reform implementation across critical sectors — ports, power, taxation, real estate, and digital infrastructure, can restore investor confidence and deliver meaningful dividends to citizens.

He advised that renewable energy is the most sustainable power supply in the long run, and that the government should support this with required regulation and investment.

On the oil and gas sector, he stated that, though traditionally Nigeria’s revenue backbone, unfortunately it continues to underperform due to structural inefficiencies, insecurity, and delayed policy execution.  He added that though crude production has increased in recent months, Nigeria remains unable to meet its OPEC+ crude oil production quota of 1.8 million barrels per day (mbpd) noting that as of June 2025, actual crude production stood at 1.42 mbpd, constrained by pipeline vandalism and illegal bunkering in Bayelsa and Rivers States.

Operational challenges at the Forcados and Bonny terminals, and delays in concluding divestment agreements between International Oil Companies (IOCs) and indigenous operators he stated.

He said: “On the domestic front, product pricing has not been stable or predictable enough to support investors’ confidence. Suppose the reduction we have recorded in recent months is sustained. In that case, we may see downward pressure on logistics and transport costs, with positive implications for food inflation and industrial productivity.

“In the gas sub-sector, the Federal Government’s Midstream Gas Investment Incentives Policy, unveiled in May, includes tax holidays, duty waivers, and accelerated actions on LPG and CNG infrastructure. This is a strategic shift toward cleaner, affordable fuels, and therefore calls on the government to ensure transparent allocation of licenses, completion of major gas transport pipelines, and clarity on off-take frameworks to de-risk private investment. We strongly advocate for fully enforcing the Naira-for-Crude swap framework to ensure consistent domestic crude supply for local refiners.”

On the Nigerian petroleum sector developments, the LCCI chief said the Chamber notes the declining global oil prices, inefficiency, and underperformance of government-owned refineries.  To address these he recommended that the government consider selling or leasing all government-owned refineries to capable investors and create a favourable and competitive environment for private investment.

According to him the goal is to attract more investment in the oil refining space and to reduce the importation of refined petroleum products further.

He regretted that the nation’s macroeconomic policy environment remains at a crossroads, with reform momentum frequently hindered by implementation delays and stakeholder resistance. However, he noted that progress has been recorded in key areas such as fiscal consolidation, digital governance, and steps toward regulatory harmonisation.

Lagos Chamber of Commerce & Industry (LCCI) has hailed President Bola Tinubu for enacting to law, four landmark tax reform bills namely, the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

These reforms, passed after extensive stakeholder consultations, mark a significant milestone in Nigeria’s journey toward a more transparent, efficient, and growth-aligned fiscal framework it stated.

In a statement, LCCI Director General, Dr Chinyere Almona stated that from a macroeconomic perspective, the reforms are expected to impact four major areas: inflation, trade competitiveness, tax compliance, and investor confidence.

According to her, unifying Nigeria’s complex, fragmented tax laws,  the digital and institutional upgrades in the bills give the private sector a better platform to grow and compete.

She said: “The  potential impact of inflation is twofold, in the short term, as businesses re-price, the broader tax net and initial compliance adjustments may trigger a slight increase in core inflation, estimated between 40–60 basis points. In the medium term, the reduction of tax inefficiencies and a shift from monetary financing to sustainable revenue should help ease price pressures”.

Explaining further the LCCI boss noted that  government’s fiscal projections anticipate headline inflation falling to 15 percent by end of 2026, compared to 27.6 percent in May 2025 with essential goods and services now exempt from VAT.

She said the move is expected to ease the cost of living for millions of Nigerians.

In addition the tax laws will also significantly improve Nigeria’s trade competitiveness as the introduction of a unified filing system and streamlining state and federal tax processes, businesses could see compliance time fall by up to 40 percent.

Read Also: LCCI urges diplomacy on Trump’s tariff

The reforms will also effectively reduce transaction costs while supporting Nigeria’s export competitiveness under the African Continental Free Trade Area (AfCFTA).

Furthermore, Almona stressed that tax compliance is an area where the reforms are poised to deliver tangible gains.

According to her Nigeria’s tax-to-GDP ratio, currently at 7.9 percent, is among the lowest in sub-Saharan Africa, establishing a single taxpayer ID, risk-based audit protocols, time-bound refund mechanisms, and taxpayer protection instruments such as the Office of the Tax Ombudsman would broaden the tax base while reducing the informal sector’s dominance.

She projected an increase in non-oil tax revenues by N3.2 trillion over the next two years, pushing the tax-to-GDP ratio towards 12 percent by 2027 with full implementation.

These new laws, with their institutional safeguards and digital monitoring platforms, send a strong signal of fiscal discipline and reliability she stated. However, she maintained that the independence of the emerging Nigerian Revenue Service (NRS), supported by robust performance reporting, will further bolster credibility and reduce the risk premium attached to long-term investments.