The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to prioritise reforms that address constraints in the manufacturing sector while tackling broader macroeconomic and fiscal challenges facing the economy.

The president of LCCI, Leye Kupoluyi, gave the advice on Thursday in Lagos, at the chamber’s quarterly state of the nation’s economy news conference.

He stated that the manufacturing sector remained a critical driver of revenue and industrial growth, citing a strong performance in 2025.

Mr Kupoluyi noted that the sector contributed N1.17 trillion in value added tax (VAT), representing a 45.61 per cent increase from N803.53 billion recorded in 2024.

He added that the company income tax (CIT) from the sector rose to N881.29 billion, up by 32.83 per cent from N663.46 billion in the previous year.

“This strong year-on-year growth reinforces the sector’s expanding role in generating government revenue and in Nigeria’s industrial development.

“Following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions,” he said.

On the global terrain, the LCCI president noted that the global economy remained unsettled, shaped by geopolitical tensions, supply chain disruptions and monetary tightening in advanced economies.

He said the trends had sustained inflationary pressures globally while exposing emerging markets, including Nigeria, to capital outflows and currency volatility.

Mr Kupoluyi, noting that Nigeria had benefitted from high crude oil prices, warned against mismanaging the resulting windfall.

He urged the government to channel oil revenues into the Sovereign Wealth Fund, critical infrastructure and diversification initiatives to reduce import dependence and support long-term growth.

On monetary policy, the chamber’s president commended the Central Bank of Nigeria’s Monetary Policy Committee for reducing the monetary policy rate by 50 basis points to 26.5 per cent at its February meeting.

He described the move as a cautious but important shift, reflecting growing confidence amid improvements in inflation and external sector performance.

Mr Kupoluyi also highlighted improvements in the foreign exchange market, noting that the naira had shown relative stability and appreciated to about N1,350.79 to the dollar in the official market.

He said the performance reflects improved liquidity, investor confidence and the impact of ongoing reforms but called for stronger policy coordination, increased FX inflows and fiscal discipline to sustain stability.

On fiscal operations, the LCCI president raised concerns over weak capital budget implementation, citing the rollover of N7.71 trillion in unexecuted 2025 capital projects.

He said delays in fund releases, bureaucratic bottlenecks and inefficiencies continued to undermine project delivery and strain contractors.

He urged the government to develop a more effective framework for capital budget releases to ensure timely funding and execution of projects.

Addressing the oil and gas sector, Mr Kupoluyi welcomed the ongoing reform efforts aimed at boosting crude oil production and improving regulatory processes.

He called for a fully digital regulatory ecosystem to enhance transparency, accelerate approvals and restore investor confidence.

He added that high global oil prices presented an opportunity for Nigeria to strengthen its position as a major supplier, provided local production and refining capacities are improved.

The LCCI president, however, expressed concern over high import duties on paper, printing materials and related inputs, noting that the policy had increased production costs across several value chains.

“The situation is worsened by port delays, multiple regulatory checks and inconsistent tariff classifications.

“The chamber calls for a review of import duties, integration of regulatory agencies into the National Single Window and measures to reduce cargo clearance timelines.

“A balanced policy mix of moderate tariffs, support for local production and stable macroeconomic conditions would enhance industrial growth and reduce business costs,” he said.

Mr Kupoluyi also reiterated its commitment to continued engagement with government and stakeholders to promote policies that support a thriving business environment. 

(NAN)