Mid-Year Review: LCCI calls for deeper collaboration between public and private sectors to grow Nigeria’s economy

The President/Chairman of Council, Lagos Chamber of Commerce and Industry (LCCI), Mr. Gabriel Idahosa, FCA, has called for a deeper collaboration between the public and private sectors to grow Nigeria’s economy in the second half of year 2025.

While maintaining that there is a need to strengthen investor confidence through predictable policy environments, legal clarity, and responsive governance, Idahosa said the regulatory agencies must avoid abrupt decisions that increase the cost and complexity of doing business.

The LCCI President made the call in the remarks he delivered at LCCI Mid-Year 2025 Economic Review held at the LCCI headquarters in Lagos on Wednesday, July 16, 2025.

Idohasa admitted 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 but inflationary pressures have remained elevated, mainly due to high food prices, energy costs, currency depreciation, and disruptions in logistics and supply chains.

He said the government must also prioritize infrastructure financing, ease of tax compliance, digitization of public services, and institutional reforms that enhance transparency and reduce the cost of governance, pointing out that the Chamber would support the policy development process with data, feedback, and engagement.

Idahosa said “as we review the first half of the year, we must appreciate both the progress made and the structural issues hindering inclusive growth. 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, inflationary pressures have remained elevated, mainly due to high food prices, energy costs, currency depreciation, and disruptions in logistics and supply chains. Headline inflation continues to hover around uncomfortable double-digit levels, eroding purchasing power and increasing business costs. Although the Central Bank of Nigeria has responded with tighter monetary policy and interest rate hikes, inflation remains stubborn and poses a significant challenge to private investment and household consumption. Meanwhile, despite 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 must be addressed with greater urgency and coordination across fiscal and monetary institutions.

“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. 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.”

According to him, “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 recognize 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. However, 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.

“As stakeholders in economic development, we call for 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 prioritize infrastructure financing, ease of tax compliance, digitization 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.”

Idohasa, despite the challenges confronting us, is emphatic that Nigeria remains a land of vast economic promise, saying the the African Continental Free Trade Area (AfCFTA) presents opportunities for regional trade expansion, value chain integration, and industrialization.

“Despite the challenges confronting us, 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 industrialization. Similarly, climate-smart investments and green financing present emerging avenues for sustainable economic growth.

He said “However, unlocking these potentials requires deliberate and coordinated efforts. We must improve broadband infrastructure, invest in vocational training, promote domestic manufacturing, and support innovation hubs nationwide. Local content development, diaspora engagement, and targeted investment promotion strategies are also critical. In all this, the government must act not as a competitor but as a facilitator and enabler of business success.

“As we enter the second half of 2025, we must approach the remainder of the year with renewed resolve, strategic focus, and collaborative spirit. Transforming Nigeria’s economy is a shared responsibility; government, businesses, civil society, and development partners must align their efforts toward common goals. We must move from policy rhetoric to implementation, from isolated efforts to integrated strategies, and from short-term fixes to long-term planning. The LCCI will continue to advocate for reforms that improve competitiveness, protect investments, and create jobs. We remain committed to building a strong, sustainable, and inclusive economy where businesses thrive and citizens prosper.”

On this Mid-Year review, he has this to say “This 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, scrutinize macroeconomic policies and business trends, and outline practical recommendations for a more resilient and inclusive economy. As the foremost voice of the private sector in Nigeria, the LCCI is committed to driving discourse that promotes enterprise, policy consistency, competitiveness, and sustainable development.”

Speakers at the event included Mr. Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy & Tax Reforms; Dr. Tope Fasua, Special Adviser to the President on Economic Affairs; and Dr. Biodun Adedipe, Founder & Chief Consultant, BAA Consult and Dr. Adetilewa Adebajo, CEO, The CFG Advisory.