Economy
THE Lagos Chamber of Commerce and Industry (LCCI) says sustained fiscal reforms, exchange rate stabilisation and enhanced monetary policy coordination are needed to foster growth in 2025.
Mr Gabriel Idahosa, President, LCCI, said this on Wednesday in Lagos, via the chamber’s 2024 Economic Review and 2025 Outlook report.
Idahosa stressed that prioritising diversification, investing in critical sectors, and policy consistency were essential to achieving the government’s medium-term economic recovery objectives.
He commended the resilience and tenacity of the Nigerian people and business community in navigating the economic challenges of the past year.
He noted that the Nigerian economy was at a critical juncture, presenting hope for possible transformative growth, which required decisive and strategic policy actions to address lingering challenges.
“As we enter 2025, the global economy is poised at a crossroads, grappling with uncertainties while uncovering new opportunities.
“Key developments, such as the inauguration of a new United States of America administration under Donald Trump, bring both promises and challenges.
“Markets worldwide will likely navigate a recalibration phase as businesses and governments adapt to shifts in international trade, energy strategies, and geopolitical alliances,” he said.
Idahosa emphasised the need for global collaboration and innovation as economies recover from previous downturns and adjust to emerging disruptions.
He said policymakers and industry leaders must address pressing issues like the debt crisis, climate change, technological transformation, and social equity with bold and actionable strategies.
According to him, the dynamic interplay of these factors will undoubtedly shape the trajectory of global economic health and set the stage for long-term growth.
“In 2024, Nigeria’s manufacturing sector experienced sluggish growth, contributing approximately 8.9 per cent to Gross Domestic Product (GDP) as it faced significant headwinds.
“In spite of the challenges, specific sub-sectors like food processing and textiles showed resilience, supported by domestic demand,” he said.
The LCCI president said that in 2025, the manufacturing sector was projected to grow moderately.
This growth, he said, would be driven by anticipated improvements in infrastructure, enhanced access to foreign exchange, and government policies aimed at promoting local production and reducing reliance on imports.
He stressed that addressing structural bottlenecks, fostering innovation, and expanding public-private partnerships would be critical for unlocking the sector’s growth potential.
“Looking ahead to 2025, cautious optimism prevails as GDP growth is projected at 3.2 per cent by the International Monetary Fund driven by ongoing reforms and more substantial contributions from the oil and non-oil sectors.
“Inflation is expected to ease as monetary policies take effect, with trade, agriculture, and manufacturing poised to drive job creation — vital for addressing unemployment and poverty.
“Closing infrastructure gaps remain a top priority, necessitating innovative funding models and enhanced public-private partnerships,” he said.
He also urged the Federal Government to prioritise some key areas to unlock sustainable economic growth and improve the well-being of Nigerians in the year ahead.
Idahosa said government must address inflation and promote price stability, ensure fiscal sustainability and debt management, improve ease of doing business, advance trade and investment among others.
He charged businesses to embrace innovation, digital transformation, and sustainability as growth strategies.(NAN)
1st January, 2024.
C.E.
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