LCCI President, Idahosa predicts Manufacturing Sector To Witness Transformative Growth In 2025
The Lagos Chamber of Commerce and Industry (LCCI) has predicted that the Nigerian economy, particularly the manufacturing sector would witness transformative growth in 2025.
The President of LCCI, Mr. Gabriel Idahosa, disclosed this in a statement which reviewed the Nigeria’s economic performance in 2024 and projected the country’s economic outlook for 2025.
Idahosa hinge this growth to the decisive and strategic policy actions of Government if it is specifically formulated and implemented to address persistent economic challenges.
Idahosa said “Looking ahead to 2025, the manufacturing sector is projected to grow moderately, driven by anticipated improvements in infrastructure, enhanced access to foreign exchange, and government policies aimed at promoting local production and reducing reliance on imports.
“Addressing structural bottlenecks, fostering innovation, and expanding public-private partnerships will be critical for unlocking the sector’s growth potential.”
He highlighted that the agricultural sector is expected to grow tremendously in 2025 and would be supported by government’s initiatives to boost food security, improve rural infrastructure as well as expand agricultural value chains.
In his words: “Strengthening climate resilience and ensuring access to affordable financing will be crucial to unlocking the sector’s full potential and ensuring its pivotal role in Nigeria’s economic diversification agenda.”
He lamented that Nigeria’s manufacturing sector experienced sluggish growth in 2024 and contributed approximately 8.9 per cent to the country’s Gross Domestic Product (GDP), noting that it faced significant headwinds, including high production costs driven by inflation, foreign exchange volatility, and energy shortages.
He affirmed that despite these challenges, sub-sectors like food processing and textiles showed resilience and were supported by local demand.
The LCCI boss urged the Federal Government to prioritise the promotion of price stability, improvement in ease of doing business, fiscal sustainability and debt management with a view to unlock sustainable economic growth and enhance the well-being of Nigerians in 2025.
The chamber also called on the Government to tackle unemployment, empower youths, enhance food and energy security and advance trade and investment.
The Chamber stated further that. “Businesses must embrace innovation, digital transformation, and sustainability as growth strategies, while collaboration between the private and public sectors is critical to overcoming challenges and attracting investment.
“We need investments in the telecoms sector to drive the desired digital revolution, oil and gas investments to boost crude production levels, and the power sector to enhance power generation to support economic activities.
Commenting on the review of the 2024 activities, Idahosa said: “We expect to see some ease in fuel prices in the first quarter as the price wars continue and a possible easing in interest rates in the second quarter of 2025.”
“The Nigerian economy experienced a tumultuous period marked by persistent rising prices, burdening interest rates, high cost of production, low demand, and an uncertain macroeconomic policy direction.
“It stands at a critical juncture, presenting hope for possible transformative growth, which requires decisive and strategic policy actions to address lingering challenges.
“Inflation is expected to ease as monetary policies take effect, with trade, agriculture, and manufacturing poised to drive job creation vital for addressing unemployment and poverty.”
Idahosa maintained that closing infrastructure gaps should remain a top priority of the government, which according to him, would necessitate innovative funding models and enhanced public-private partnerships to accomplish.
He implored the federal government to do more to improve the country’s business environment in order to attract more direct foreign investments, particularly in power which includes renewable and CNG projects, oil and gas, as well as telecommunications sectors.
He warned that even though Nigeria’s public debt had been projected to grow modestly in 2025, and harped on a need for a delicate balance between borrowing for growth and maintaining debt sustainability.
“Implementing fiscal discipline, diversifying revenue sources, and attracting private investments through public-private partnerships will be critical to managing debt while fostering economic development,” the President of LCCI emphasized.
