Market News

By : Abigail Ikhaghu

The Lagos Chamber of Commerce and Industry (LCCI) has cautioned that Nigeria’s recent trade alignment with BRICS bloc and the ensuing retaliatory tariffs by the United States pose significant threats to national revenue, investor confidence and the survival of critical non-oil exports.

Addressing journalists during the Chamber’s third quarterly press conference in Lagos, the LCCI President, Gabriel Idahosa, stated that Nigeria was increasingly vulnerable to global economic fragmentation, geopolitical shifts, and weakening domestic indicators, with policy responses urgently needed to safeguard the economy and business environment.

Idahosa described it as deeply concerning, given Nigeria’s close relations with the BRICS bloc, comprising Brazil, Russia, India, China, and South Africa.

He warned that the trade tension could further depress Nigeria’s foreign earnings, disrupt supply chains and isolate the country from strategic markets if left unaddressed.

Idahosa urged the Federal Government to initiate bilateral engagement with the U.S. to seek exemptions for targeted sectors and reaffirm the country’s strategic importance as West Africa’s leading economic player.

Beyond the diplomatic fallout, the LCCI called for a deliberate strategic trade diversification plan that would strengthen regional trade ties, improve domestic industrial capacity and negotiate preferential trade agreements within the BRICS bloc to mitigate losses.

The Chamber also advised the government to accelerate reforms that support local value chains and reduce the economy’s dependence on oil. While acknowledging the official Q1 2025 GDP growth of 3.13 per cent and the rebasing of Nigeria’s nominal GDP to N372.82 trillion, Idahosa warned that the figures mask the realities of the economy.

“The inflationary spiral, high energy costs, exchange rate depreciation, and rising cost of living continue to erode real incomes and deepen poverty,” he said, insisting that these pressures are forcing both households and businesses into survival mode.

He called for urgent measures to stabilise the naira through restored investor confidence, increased non-oil export support, and interventions to reduce the country’s import dependency.

The chamber stressed the need to boost food security through input subsidies, better storage and logistics systems, and enhanced security around farmlands.

Idahosa said forex pressures are being exacerbated by falling crude oil output, oil theft, pipeline vandalism and reduced global oil prices. He urged the government to pursue its two million barrels per day production target aggressively, while also encouraging private refining capacity to reduce importation and conserve foreign exchange

He commended the recent passage of the Nigerian tax reform acts, describing the overhaul as a transformative step toward simplifying the tax system, encouraging investment and easing compliance burdens for MSMEs.

Among the key highlights of the reform are the exemption of businesses with turnover under N100 million from key taxes, the consolidation of multiple levies into a four per cent development levy and new tax credits for capital investment through the economic development incentive. He also welcomed the federal government’s Nigeria First Policy as a strategic response to trade disruptions and global protectionism.

However, he urged that implementation must include targeted support for local industries, particularly SMEs, through tax reliefs, concessional financing, and public procurement mandates favouring domestic goods and services.

Idahosa raised alarm over the state of the power sector, describing it as intensely fragile. He criticised the recent electricity tariff hike without commensurate service delivery and urged a decentralisation of energy solutions, improved support for mini-grid investments, and expansion of the national metering programme.

For MSMEs, which constitute over 96 per cent of Nigerian businesses, Idahosa called for transparent execution of the N150 billion CBN intervention fund and energy subsidies for productive industrial clusters.