The Lagos Chamber of Commerce and Industry (LCCI) has issued a stark warning to the Federal Government of Nigeria regarding the adverse effects of its current revenue generation strategy on the country’s business environment. According to the Chamber, the government’s overly aggressive revenue posture is proving detrimental to the operations and survival of many businesses, particularly Micro, Small, and Medium Enterprises (MSMEs). This approach, the LCCI argues, could undermine the Federal Government’s ambitious goal of transforming Nigeria into a $1 trillion economy by the year 2030.
At the Chamber’s First Quarterly Review of the State of the Nation’s Economy, LCCI President, Gabriel Idahosa, emphasized the need for a strategic shift from a revenue-driven regulatory focus to one that encourages facilitation and sustainable economic development. He observed that the constant pressure on businesses by regulatory bodies, driven by the sole aim of revenue collection, is suffocating key sectors of the economy. The harsh reality, he said, is that many SMEs, which should serve as the backbone of economic transformation, continue to struggle with systemic challenges such as power unreliability, insecurity, and high production costs.
The LCCI identified the power sector as the most significant barrier to economic growth. The Chamber stated unequivocally that unless the Federal Government urgently fixes the power supply problem and supports states to generate their own electricity independently, the dream of a $1 trillion economy will remain elusive. It recommended interventions such as electricity subsidies, proper refund mechanisms, and regulatory reforms to ensure energy billing transparency. Additionally, the Chamber encouraged federal authorities to honor commercial partnerships with renewable energy investors by granting licenses, creating a competitive regulatory framework, and enforcing local content policies in energy projects.
With the passage of legislation allowing states to generate power independently, the LCCI expects more states to follow the lead of those already investing in localized power solutions. This, the Chamber believes, will boost the country’s overall power output and ease the burden on the national grid, thereby promoting economic productivity.
In addressing Nigeria’s mounting debt, which is projected to exceed N157 trillion by December 2025, the Chamber acknowledged some improvements in fiscal management but expressed concerns over the sustainability of continued borrowing, especially for non-productive expenditures. It called for a reassessment of the country’s debt management strategies and encouraged the government to explore cheaper sources of financing, including more strategic utilization of national assets.
The issue of food security and inflation was also highlighted as a critical concern. Despite reported improvements in macroeconomic indicators, the Chamber noted that food prices remain high, and millions of Nigerians face hunger and malnutrition. It called for urgent investment in agro-processing infrastructure through initiatives like the Special Agro-Industrial Processing Zones (SAPZ), which can help scale domestic food production and reduce the dependence on imports.
Furthermore, the Chamber urged both federal and state governments to collaborate in addressing the forecasted flood threats that could jeopardize farmlands across the country. Proactive measures, it insisted, must be taken to protect crops and maintain food supply chains.
In conclusion, the Lagos Chamber of Commerce and Industry’s position highlights the urgent need for a re-evaluation of government policy directions. To achieve its economic transformation agenda, Nigeria must prioritize consistent power supply, create a business-friendly environment, manage debt prudently, and ensure food security through robust agricultural investment. Without these interventions, the nation’s economic aspirations may remain a dream rather than a reality.
