…as mid-year 2025 economic outlook review shows GDP growth
The Lagos Chamber of Commerce and Industry (LCCI) has expressed worries that despite ongoing economic reforms aimed at improving the business environment, small and medium-sized enterprises (SMEs) continue to grapple with high operational costs, regulatory hurdles, and infrastructure challenges.
Gabriel Idahosa, the president of LCCI, disclosed this in the annual mid-year review of the association made available to BusinessDay, when he emphasised that while policy shifts have brought some relief, many entrepreneurs are faced with high operational costs, which is a major barrier to growth and sustainability.
“The private sector, particularly small and medium-scale enterprises, continues to navigate a challenging operating environment marked by high energy costs, regulatory uncertainty, limited credit access, and infrastructure deficiencies,” Idahosa said, while emphasising that the annual mid-year review is a significant platform for engaging critical thoughts and actions around Nigeria’s economic journey.
“It allows us to reflect on developments in the first half of the year, scrutinise macroeconomic policies and business trends, and outline practical recommendations for a more resilient and inclusive economy,” he noted.
Read also: LCCI calls for sustainable market-driven reforms to drive price stability
LCCI revealed that in the first two quarters of 2025, Nigeria’s economy recorded a modest GDP growth rate, mainly driven by services, telecommunications, and some recovery in oil production.
However, the organisation stated that inflationary pressures have remained elevated, mainly due to high food prices, energy costs, currency depreciation, and disruptions in logistics and supply chains.
Meanwhile, LCCI states that despite the reforms aimed at unification and increased transparency, the foreign exchange market still suffers from illiquidity, speculative tendencies, and a lack of investor confidence.
These macroeconomic imbalances, the organisation said, must be addressed with greater urgency and coordination across fiscal and monetary institutions.
According to the LCCI report, businesses across sectors, including manufacturing, agro-processing, trade, and logistics, face significant obstacles in their quest for profitability and scale.
“Power supply remains erratic, fuel prices are volatile, and security challenges persist, especially for agribusinesses and transport operators. A significant development in 2025 has been the passage and implementation of the New Nigeria Tax Act, aimed at improving non-oil revenue, broadening the tax base, and enhancing compliance through digital platforms.
“We must also recognise areas of resilience and innovation. The technology ecosystem continues to evolve, with fintechs, e-commerce, and digital platforms providing new models for job creation and service delivery. The creative industries and segments of the agricultural value chain have demonstrated strong adaptability and export potential,” the report stated.
However, the report emphasised that for this resilience to translate into sustained growth, there must be a deliberate strategy to de-risk the environment and create incentives for long-term investments.
Read also: LCCI urges FG to support businesses reduce operational costs
Hence, LCCI advocate deeper collaboration between the public and private sectors. There is a need to strengthen investor confidence through predictable policy environments, legal clarity, and responsive governance.
“Regulatory agencies must avoid abrupt decisions that increase the cost and complexity of doing business. The government must also prioritise infrastructure financing, ease of tax compliance, digitisation of public services, and institutional reforms that enhance transparency and reduce the cost of governance. As a Chamber, we remain available to support the policy development process with data, feedback, and engagement,” LCCI noted.
Despite the challenges confronting the country, the organisation said, Nigeria remains a land of vast economic promise.
Our youthful population, abundant natural resources, entrepreneurial energy, and strategic location make us uniquely positioned to become a regional powerhouse in innovation, manufacturing, and agribusiness.
The digital economy continues to offer exponential possibilities, especially in areas like health tech, education, logistics, and financial services. The African Continental Free Trade Area (AfCFTA) presents opportunities for regional trade expansion, value chain integration, and industrialisation,” LCCI stated in part.
