Leye Kupoluyi, President and Chairman of Council of the Lagos Chamber of Commerce and Industry, has raised concerns over the worsening state of Nigeria’s private sector, describing the current business environment as one of the most difficult in recent years.
Speaking on the challenges facing businesses, Kupoluyi said companies are grappling with rising energy costs, weak consumer demand, foreign exce inility, and limited access to affordable credit. He noted that many small and medium enterprises are now operating in survival mode as they struggle to remain afloat amid ongoing economic reforms.
According to him, the cumulative impact of increased energy prices and currency pressures has significantly raised the cost of doing business, while tightening financial conditions have made it harder for businesses to secure funding for expansion.
He explained that despite the difficulties, the government’s ongoing reforms in taxation, trade policy, and the financial sector may lay the foundation for long term economic ility, even though they are currently creating short term pain for businesses.
Kupoluyi stressed that policy consistency remains critical for economic recovery, adding that investors are closely monitoring Nigeria’s economic direction before committing to long term investments.
He also highlighted energy and infrastructure deficits as major constraints to productivity, calling for increased investment in renewable energy, CNG adoption, and local manufacturing of energy components to reduce operational costs.
The LCCI president further emphasized the importance of transport infrastructure, particularly rail and road networks, in reducing logistics costs and improving efficiency in the movement of goods and services across the country.
On taxation, he acknowledged ongoing reforms aimed at reducing multiple taxation, describing them as a positive development that still requires careful review to avoid unintended consequences for businesses.
Kupoluyi also noted that Nigeria has strong opportunities under the African Continental Free Trade Area, but stressed the need for SMEs to become export ready and meet global quality standards to compete effectively in international markets.
He identified ICT, financial services, agriculture, renewable energy, and the creative industry as key sectors showing resilience and growth potential despite current economic challenges.
Looking ahead, he expressed cautious optimism about Nigeria’s economic outlook over the next 12 to 24 months, stating that sustained reforms and support for productive sectors could drive gradual recovery and improved business confidence.
He concluded that infrastructure development and energy reform must remain top priorities for policymakers, as they directly affect all sectors of the economy and determine overall business competitiveness.
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