President, Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, has noted that despite the International Monetary Fund (IMF) projecting a growth of 4.1 per cent for Sub-Saharan Africa this year, he said this remains tentative due to high debt servicing, tight credit conditions and the raging impact of climate-related disruptions.
Speaking at a briefing in Lagos yesterday to discuss the state of the economy, he said whatever growth the government is saying it has recorded, it is battling with persistent inflationary pressures, rising global debt and uncertain trade dynamics.
He said, despite the bleak outlook, it presents both challenges and opportunities and urged the federal government to embrace fiscal prudence, transparent governance and coordinated monetary management to sustain resilience in an increasingly volatile world.
He further noted that the IMF’s recent World Economic Outlook underscores three critical concerns relevant to Nigeria: debt sustainability, revenue mobilisation and diversification. He expressed concerns about the country’s external debt obligations, alongside the rising domestic borrowing costs.
“While efforts to digitise tax administration are commendable, there is still a need to expand the tax base, rationalise exemptions and enhance efficiency. We, however, caution against excessive tax increases that may weaken enterprise competitiveness,” he said.
Noting six key global risks shaping Nigeria’s external environment, he said they include escalating geopolitical tensions in the Middle East and Eastern Europe; the prolonged U.S. government shutdown since October 1; growing protectionism and trade barriers; softening labour markets in advanced economies; persistent inflation despite disinflationary trends; and overvalued financial assets that heighten the risk of market corrections.
“As major central banks begin to relax interest rates, emerging markets like ours may experience renewed capital inflows, but we must guard against volatility and imported inflation. In this context, the LCCI recommends deepening structural reforms to attract sustainable foreign investment, maintaining fiscal discipline to stabilise debt, investing in productivity-enhancing technologies, especially artificial intelligence and expanding intra-African trade to maximise the benefits of the African Continental Free Trade Area (AfCFTA).
Speaking on the recent reduction of the Monetary Policy Rate (MPR) from 27.5 to 27.0 per cent, he commended the apex bank for its proactive stance but stressed that monetary easing alone cannot deliver growth without supportive fiscal policies, infrastructure upgrades and security improvements.
Speaking on the fiscal environment, he said that although the debt-to-GDP ratio remains moderate, the rising cost of debt servicing is a huge concern and urged governments at all levels to channel revenue and borrowing toward capital formation, such as roads, power, logistics, and human capital, rather than recurrent expenditures.
Lamenting the fact that Nigeria imported N815 billion worth of animals in the first half of 2025, resulting in a N763 billion trade deficit, he said this underscores profound structural weaknesses in local production.
“We are very concerned about the four per cent Free-on-Board (FOB) levy on exports. While the intent to enhance revenue is understandable, this policy undermines competitiveness, discourages manufacturing and contradicts the diversification agenda. We therefore call for a review of the levy to expand the list of exempted products, particularly those related to agricultural inputs, renewable energy and industrial machinery. This review should align revenue generation with trade facilitation objectives rather than penalising producers,” he said.
Also expressing concern over the 13 per cent decline in gas production recorded in September 2025, caused by vandalism and operational downtime, he said this poses a threat to energy security and the reliability of power generation. “We urge the government to prioritise pipeline protection, community engagement and consistent pricing frameworks to attract investment. Without stable gas output, the “Decade of Gas” initiative cannot deliver its promise,” he said.
