The Lagos Chamber of Commerce and Industry (LCCI) has urged government at all levels to overhaul policies affecting the competitiveness of local manufacturers.

The chamber warned that multiple regulatory bottlenecks, uneven import duty regime, and weak support for indigenous industries are raising production costs, discouraging investment and frustrating industrial growth.

Presenting a review of the economy, LCCI President, Leye Kupoluyi, said manufacturers continue to grapple with policy inconsistencies that make locally produced goods less competitive while encouraging imports and limiting opportunities for domestic value addition.

Among the issues highlighted was an unfair duty structure in the printing industry, where imported books enjoy zero import duty under international agreements while local printers pay duties on imported printing materials.

According to Kupoluyi, the imbalance has increased production costs for indigenous operators, weakened local manufacturing and reduced investment in the sector.

“Local printing companies continue to face an uneven competitive environment as imported books enjoy zero import duty under international agreements, while printing inputs imported by domestic operators remain subject to import duties. This increases production costs and discourages local manufacturing,” he said.

He urged the Federal Ministry of Finance and the Nigeria Customs Service (NCS) to review the current duty structure on printing materials to create a level playing field that supports local industry, employment and investment.

The LCCI also expressed concern over the declining patronage of indigenous printing companies despite their capacity to execute large-scale printing projects locally and blamed the situation on policies that encourage the outsourcing of printing jobs. They called on the government to give priority to local firms in public procurement while promoting domestic paper production and local value addition.

Kmupoluyi also identified excessive regulatory requirements as another major obstacle confronting manufacturers, particularly micro, small and medium-sized enterprises (MSMEs).

He said businesses continue to incur unnecessary compliance costs because products with identical formulations but different packaging sizes are subjected to multiple registration requirements. He regretted that the duplication delays market entry, increases operating costs and constrains business expansion.

“We call on relevant regulatory agencies to harmonise product registration requirements and adopt a risk-based approach that eliminates unnecessary duplication while maintaining product safety standards,” he said.

He also warned that tightening export controls by Indonesia, the world’s largest palm oil exporter, could worsen production costs for Nigerian manufacturers that depend on palm oil as a critical industrial input. Revealing that Nigeria consumes between 2.5 and three million tonnes of palm oil annually but produces just 1.4 million tonnes, he said this leaves a substantial supply gap that costs the country about $550 million yearly.

He also lamented that higher global prices and supply shortages are already increasing costs for manufacturers of packaged foods and cosmetics, while pushing up import bills.

Rather than relying on imports, he urged the government to support local palm oil producers with incentives that would enable them to expand production and strengthen domestic supply chains.

According to him, improving local production would reduce manufacturers’ exposure to external shocks while creating opportunities for industrial expansion.

He maintained that creating a more competitive industrial environment would require coherent policies that encourage local production, remove unnecessary regulatory barriers and support indigenous enterprises capable of driving investment, job creation and economic growth.