The Lagos Chamber of Commerce and Industry has called for immediate and comprehensive reforms to tackle persistent challenges facing Nigeria’s manufacturing sector, warning that structural inefficiencies continue to hinder economic growth.
Speaking during a quarterly media briefing in Lagos, LCCI President Leye Kupoluyi emphasized the need for stronger fiscal discipline and improved execution of capital budgets. He noted that delays in fund releases, bureaucratic bottlenecks, and weak implementation capacity have consistently affected project delivery and private sector performance.
Kupoluyi highlighted the growing importance of the manufacturing sector to government revenue, revealing that it generated N1.17 trillion in Value Added Tax in 2025, a significant increase from the previous year. Company Income Tax also rose considerably, reflecting the sector’s resilience despite ongoing constraints.
However, he stressed that manufacturers continue to face rising production costs driven by unreliable electricity supply, inefficient logistics, and inconsistent policies. Frequent power outages and dependence on costly alternatives have severely impacted productivity across industries.
The Chamber also expressed concern over high import duties on key inputs such as paper and printing materials, alongside persistent port delays and regulatory hurdles. According to LCCI, these challenges are inflating operational costs and weakening the competitiveness of locally produced goods.
To address these issues, the Chamber recommended a balanced policy approach that includes moderate tariffs, streamlined port operations, and stronger institutional support for local manufacturers. It also called for increased investment in renewable energy and improved management of the national power grid.
Kupoluyi further pointed to the rollover of N7.71 trillion in unimplemented capital projects as evidence of deep rooted fiscal inefficiencies. He warned that failure to properly fund and execute projects not only delays infrastructure development but also disrupts business activities, especially for contractors dependent on government payments.
The LCCI maintained that without urgent reforms, Nigeria risks slowing industrial growth, job creation, and overall economic ility. Strengthening fiscal management and removing structural bottlenecks, it said, are critical steps toward building a more competitive and sustainable manufacturing sector.
Leave a comment