The Lagos Chamber of Commerce and Industry (LCCI) has called for strategic reforms to address Nigeria’s economic challenges, even as it predicts a possible reduction in interest rates in 2025.
At a press briefing in Lagos on Thursday, LCCI President Gabriel Idahosa highlighted the Chamber’s optimism that declining inflationary pressures might prompt the Central Bank of Nigeria’s (CBN) Monetary Policy Committee to lower the monetary policy rate in the coming months. However, Idahosa cautioned against relaxing efforts to tackle inflation comprehensively.
“While we project that the MPC may begin to ease interest rates within the next few months on the back of a likely lower inflation rate, we must caution the government against shifting its focus away from curbing inflationary pressures,” Idahosa said.
The LCCI expressed deep concern over the adverse effects of high interest rates, which currently stand at 27.5 per cent. According to the Chamber, these rates have increased borrowing costs, hampered investments, and funneled capital into government securities at the expense of private-sector growth.
“Rate hikes alone will not curb inflation without addressing the challenges in the real sector,” Idahosa emphasized, urging the government to support critical industries to promote economic stability.
He linked inflation, which hit a three-decade high of 34.8 per cent in December 2024, to factors such as insecurity, rising transportation costs, and the impact of climate change. Nevertheless, the Chamber remains optimistic about the effects of ongoing policy reforms.
“If the government harmonises its fiscal and monetary instruments to tackle agricultural production costs and insecurity, inflationary pressures may soon begin to abate,” Idahosa noted.
On Nigeria’s floating exchange rate regime, the LCCI pointed to the naira’s 40.9 per cent depreciation against the dollar in 2024 as a critical concern. Idahosa attributed the decline to speculative trading and mismatched forex supply and demand, urging the government to ensure transparency and boost inflows to stabilize the currency.
The Chamber also called for decisive action to implement the ambitious N34.82 trillion revenue target in the 2025 ‘Budget of Restoration.’ Idahosa stressed the importance of tax reforms, digital transparency, and integrating the informal sector into the tax system to achieve fiscal sustainability.
As part of its broader recommendations, the LCCI urged the government to expand access to credit for Micro, Small, and Medium Enterprises (MSMEs) and adopt technology-driven lending platforms. “MSMEs remain the backbone of Nigeria’s economy. We urge the government to expand access to credit at concessionary rates and introduce technology-driven lending platforms,” Idahosa stated.
While optimistic about Nigeria’s economic prospects, the Chamber underscored the need for targeted reforms to remove structural bottlenecks, align fiscal and monetary policies, and create a more business-friendly environment.
“With proactive reforms, Nigeria can navigate its economic challenges and unlock sustainable growth,” Idahosa concluded, reiterating the LCCI’s commitment to championing economic development and engaging stakeholders to foster a thriving business landscape.
