The federal government has been encouraged to implement a comprehensive strategy to address insecurity in the country, which is essential for revitalizing the agricultural sector.
This call was made by the President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, during the Chamber’s quarterly media briefing in Lagos, where he discussed the state of the national economy.
Idahosa also emphasized the importance of introducing targeted incentives for sub-national governments, particularly at the grassroots level. He urged the government to facilitate substantial investments in agricultural mechanization, smart farming technologies, and climate-resilient crop production to enhance productivity and sustainability.
Additionally, he urged the Central Bank of Nigeria (CBN) to implement specialized incentives that would encourage financial institutions to increase credit access for the agriculture and agro-processing sectors.
He suggested that this could involve risk-sharing arrangements, favorable credit guarantee programs, and strategic collaborations with agritech companies to harness unexploited opportunities in the industry.
Highlighting the Chamber’s expectations for the newly established Ministry of Livestock Development, LCCI President Gabriel Idahosa stated that the government has a crucial opportunity to implement innovative, data-driven policies.
He emphasized that these policies should focus on modernizing the livestock and aquaculture value chains, integrating advanced breeding technologies, and improving market access in rural areas.
According to him, the effective implementation of these initiatives would not only boost protein availability but also position Nigeria as a leader in sustainable livestock and aquaculture across Africa.
Addressing the challenges posed by global economic shifts, Idahosa called on the government to lead transformative reforms in the manufacturing sector. He stressed the need to tackle key cost pressures, including high inflation, rising interest rates, multiple taxation, and exchange rate instability.
He further recommended strategic measures such as introducing single-digit tax policies for manufacturers, stabilizing the naira through proactive foreign exchange management, and leveraging public-private partnerships to lower production costs.
Recognizing MSMEs as the backbone of Nigeria’s economy, he emphasized the need to enhance their access to credit at concessionary rates lower than the prevailing Central Bank of Nigeria (CBN) Monetary Policy Rate (MPR).
He highlighted that deploying technology-driven lending platforms and customized financial literacy programs would empower MSMEs to expand their operations efficiently.
According to him, these initiatives would help reduce rising production costs, protect jobs, and strengthen the competitiveness of Nigerian products in both regional and global markets.
Emphasizing the need for a comprehensive approach to boosting productivity in the real sector, he advised the government to dedicate substantial resources from the 2025 budget to upgrading infrastructure, optimizing refinery operations, and resolving fuel supply challenges.
He further stated that enhancing energy efficiency and lowering logistics costs would stimulate industrial growth, attract foreign investment, and create a more competitive business environment in Nigeria.
Expressing concern over the country’s rising inflation, he noted that it had increased for the fourth consecutive month, reaching a nearly 30-year high of 34.8 percent in December 2024, up from 34.6 percent in the previous month.
He further explained that food inflation, which accounts for over 50 percent of Nigeria’s inflation index, slightly declined to 39.84 percent in December from 39.93 percent in the previous month. The marginal 0.20 percent increase has been linked to increased demand for goods and services during the festive season.
He also noted that the National Bureau of Statistics is in the process of rebasing the consumer price index, which is used to monitor household spending patterns.
He noted that once the rebased inflation figures are released in the coming weeks, they are expected to show a decline.
However, he cautioned the government against becoming complacent with potentially lower inflation figures, emphasizing that the current price situation in the country remains critical.
According to him, the persistent rise in inflation is largely driven by reduced crop production, as farmers continue to face security challenges, high transportation costs, and the growing impact of climate change.
He further highlighted that beverages, produced by both local and multinational companies, have experienced rising costs due to the difficult operating environment. Additionally, livestock and poultry have been significant contributors to food price increases over the past year.
He urged the government to remain committed to enhancing food production through ongoing policy reforms, targeted fiscal interventions, and improved management of Nigeria’s floating exchange rate system.
He noted that the floating exchange rate policy introduced last year, without adequate control, has yet to yield positive results. As an import-dependent nation, he emphasized the need for more effective management strategies that align with the current economic conditions.
He also stated that increasing the supply of foreign exchange could help stabilize the Naira, provided that market transactions are transparent enough to minimize speculative activities.
He expressed optimism that if the government aligns its fiscal and monetary policies to address the rising cost of agricultural production, improve food processing, and continue combating insecurity, inflationary pressures could start to ease, and other key economic indicators may begin to show positive trends.