By:Tijani Salako.

The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to further intensify efforts to translate the stabilisation of the macroeconomy into improved living standards, lower household costs, ease of doing business and substantial job creation.

The appeal came shortly after Nigeria’s 66th Independence anniversary and was contained in a statement by the President of the LCCI, Engr. Leye Kupoluyi, titled, “Nigeria at 66: LCCI Calls for Urgent Action to Lower Cost of Living, Reduce Cost of Doing Business and Accelerate Job-Creating Growth.”

The LCCI acknowledged that the Federal Government’s economic reform programme had delivered encouraging signs of macroeconomic stabilisation, including stronger real GDP growth, a significant moderation in inflation from the elevated levels of the previous two years, improved external reserves and a more orderly foreign exchange market.

The Chamber also described the recent reduction in the Monetary Policy Rate to 23 per cent as a welcome signal of the authorities’ growing confidence in the disinflation process. However, it stressed that macroeconomic stabilisation must ultimately translate into improved welfare, stronger purchasing power, lower production costs and more jobs, adding that this remained the critical test of the economic recovery.

On the cost of living, the LCCI expressed concern that essential goods and services remained beyond the reach of a significant proportion of households despite the decline in headline inflation.

It noted that the challenge was not only the rate at which prices were rising, but also the high level to which prices had risen over the past several years, stressing that moderation in inflation did not necessarily mean that Nigerians were experiencing lower prices.

According to the Chamber, food, transportation, housing, healthcare, education and energy continued to absorb an increasing proportion of household disposable income.

It also warned that recent increases in petrol and diesel prices, partly driven by developments in the international oil market, could further heighten cost pressures across transportation, manufacturing, logistics, agriculture and retail.

The LCCI said diesel prices above N2,000 per litre and petrol prices around N1,400 per litre in parts of the country had significant implications for businesses and consumers. It therefore urged policymakers to focus not only on reducing inflation but also on restoring purchasing power and reducing the structural costs embedded in the prices of goods and services.

On the business environment, the Chamber said the cost of electricity and alternative energy, diesel, logistics, finance, imported raw materials, machinery, regulatory compliance and multiple taxes continued to constrain business competitiveness, particularly for micro, small and medium enterprises (MSMEs) and manufacturers.

It identified the high cost of credit as a major challenge for businesses seeking working capital and investment finance, noting that although the recent reduction in the Monetary Policy Rate was encouraging, its impact on actual lending rates would take time.

The LCCI called for complementary measures to enable businesses, particularly MSMEs and productive-sector enterprises, to access credit at more affordable rates. It also urged the National Credit Guarantee Company to support increased access to credit for small and medium-sized businesses.

The Chamber further identified regulatory uncertainty, multiple taxation, inconsistent enforcement, port inefficiencies, border delays, infrastructure deficits and the multiplicity of agencies involved in business regulation as challenges confronting the business community.

It warned that Nigeria could not achieve sustained economic transformation if the cost of producing goods locally remained substantially higher than the cost of importing competing products.

The LCCI also called for greater attention to the manufacturing sector, describing it as one of the most important channels through which Nigeria could convert economic growth into mass employment, higher productivity and improved household incomes.

It said manufacturing growth had shown signs of improvement but remained constrained by energy costs, inadequate infrastructure, expensive credit, foreign exchange exposure, weak domestic supply chains and competition from imported products.

The Chamber urged the government to adopt a comprehensive industrial competitiveness programme focused on reliable and affordable energy, affordable long-term finance, predictable trade and tariff policies, local supply-chain development and industrial infrastructure.

It said Nigeria needed to produce more locally, employ more Nigerians and reduce its dependence on imported goods. The LCCI also urged the Federal Government to make the next phase of economic reforms more firmly centred on competitiveness and productivity through sustained regulatory reforms.

It commended the recent launch of the government services portal, and called for its effective operation to enable businesses to access government services more efficiently and affordably. The Chamber said businesses should be able to register, obtain licences, pay taxes, import inputs, export products, access finance and resolve commercial disputes without excessive administrative delays and costs.

On its recommendations, the LCCI called for measures to reduce transportation costs, strengthen food production and distribution, moderate energy-related costs, protect workers’ purchasing power and strengthen targeted social protection programmes.

It urged the government to expand mass transit and public transportation infrastructure, including the rollout of compressed natural gas (CNG) and electric vehicles, while improving the movement of food and essential commodities from production areas to urban markets.

The Chamber also called for increased investment in irrigation, storage, rural roads, agricultural inputs, security and market infrastructure to boost food production and reduce post-harvest losses.

It further urged the government to improve domestic crude supply to local refineries, strengthen refinery operations, expand domestic gas utilisation and accelerate investment in alternative energy solutions.

The Chamber said Nigeria had enormous economic potential at 66, but stressed that the challenge was to ensure that macroeconomic reforms translated into tangible improvements in citizens’ lives and better operating conditions for businesses.

The LCCI acknowledged the progress made in restoring macroeconomic stability but said the next phase of reforms should focus on converting stability into prosperity, with greater emphasis on inclusive growth, production, competitiveness, job creation and improved purchasing power.