The Lagos Country Club has warned that Nigeria’s manufacturing sector is being strangled by high energy costs and persistent electricity failures.

It therefore urged the government and the private sector to confront structural bottlenecks undermining industrial growth in the country.
  
These concerns were raised at the club’s Business Forum 2.0, where industry leaders, economists and policymakers examined inflation, rising living costs and shrinking consumer purchasing power.
 
Participants agreed that weak power infrastructure, volatile macroeconomic policies and high production costs remained central to Nigeria’s industrial constraints.
  
Themed: ‘Inflation, Cost of Living and Consumer Purchasing Power: Adaptive Strategies for Nigerians,’ Chairman, Alliance for Economic Research and Ethics, Dele Oye, said Nigeria’s recent economic stability was driven more by private sector resilience than government policy.
  
Despite inflationary pressures, foreign exchange volatility and elevated borrowing costs, he noted that large domestic firms continued to invest.

He cited Dangote Industries as an example, saying the conglomerate invested $20 billion in projects that now contribute to national economic stability.

He further criticised the Federal Government for adopting policy templates designed for advanced economies without reflecting Nigeria’s structural realities.

According to him, high electricity tariffs, weak infrastructure and hostile policy environments were crippling productive enterprises.

He also faulted the apex bank’s tight monetary stance, arguing that interest rates around 33 per cent made profitable production practically impossible.

Also, Chief Economist and Partner at SPM Professionals, Dr Paul Alaje, declared that Nigeria must shift its focus from monetary tightening to supply-side reforms if it hopes to curb inflation sustainably.

He highlighted electricity as the single most critical factor for industrial revival, arguing that no lasting progress would be achieved without a reliable power supply.

He also identified insecurity, food price distortions and structural inefficiencies as key drivers of inflation, describing much of the current price pressure as “man-made”.

While acknowledging recent efforts to stabilise forex, he said deeper reforms were required to reduce housing costs, strengthen domestic production and stabilise supply chains.

The Lagos State Commissioner for Wealth Creation and Employment, Akinyemi Ajigbotafe, in his comment, outlined state-led interventions aimed at cushioning inflationary pressures and improving livelihoods.

He said the Lagos State Employment Trust Fund (LSETF) had disbursed billions of naira to small businesses in recent times and stressed that the government’s role was to create enabling environments, while the private sector must drive efficiency and fair pricing.