LCCI projects moderate real sector growth

The President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, has projected moderate growth for the real sector this year on revamped infrastructure and better access to foreign exchange.

He noted that Nigeria’s manufacturing sector experienced poor growth in 2024, contributing just 8.9 per cent to the country’s Gross Domestic Product (GDP), occasioned by significant macroeconomic headwinds, including high production costs driven by inflation, FX volatility and high energy costs.

Idahosa however, noted that despite these challenges, sub-sectors like food processing and textiles showed resilience and were supported by domestic demand. He, therefore, urged the Federal Government to prioritise the promotion of price stability, improvement in ease of doing business, fiscal sustainability and debt management in order to unlock sustainable economic growth and improve the well-being of Nigerians and businesses this year.
He said the removal of fuel subsidies and persistent power supply challenges further strained the sector, limiting output and increasing the cost of locally produced goods. Access to FX for importing raw materials remained constrained, exacerbating supply chain disruptions. Several multinational companies also exited the Nigerian market.

“In 2025, the manufacturing sector is projected to grow moderately, driven by anticipated improvements in infrastructure 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.”

Envisaging a more optimistic outlook for the agricultural sector this year, he said the sector is expected to grow tremendously, supported by government initiatives to enhance food security, improve rural infrastructure and expand agricultural value chains.

Noting that the sector recorded steady growth in 2024, contributing at its peak, 28.65 per cent to the nation’s GDP, he said this was driven by increased production in crops such as maize, rice, and cassava, as well as sustained investment in mechanisation and technology adoption.

“However, as usual, growth was constrained by challenges such as insecurity in key farming regions, high input costs and limited access to credit for smallholder farmers. Inflationary pressures also impacted the affordability of essential inputs, while climate variability affected yields,” he stated.

Speaking on the construction and real estate sectors, which he said contributed 3.35 per cent and 5.43 per cent respectively to the GDP last year, he said the sector also faced considerable challenges, including escalating costs of building materials due to inflation and FX volatility, high interest rates, delays in government-funded infrastructure projects and insecurity.

This year, he said the sector’s growth will be high on average, supported by anticipated improvements in macroeconomic stability, increased private sector participation and expanded public infrastructure projects.