Economy
LCCI Urges FG to Fix Manufacturing Bottlenecks, Stabilise Economy
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to prioritise reforms that address constraints in the manufacturing sector as it tackles broader macroeconomic and fiscal challenges facing the Nigerian economy.
President of LCCI, Mr Leye Kupoluyi, gave the advice on Thursday in Lagos, at the chamber’s quarterly state of the nation’s economy news conference.
He stated that the manufacturing sector remained a critical driver of revenue and industrial growth, citing a strong performance in 2025.
Mr Kupoluyi noted that the sector contributed N1.17 trillion in Value Added Tax (VAT), representing a 45.61 per cent increase from N803.53 billion recorded in 2024, adding that the Company Income Tax (CIT) from the sector rose to N881.29 billion, up by 32.83 per cent from N663.46 billion in the previous year.
“This strong year-on-year growth reinforces the sector’s expanding role in generating government revenue and in Nigeria’s industrial development.
“Following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions,” he said.
On the global terrain, the LCCI president noted that the global economy remained unsettled, shaped by geopolitical tensions, supply chain disruptions and monetary tightening in advanced economies.
He said these trends had sustained inflationary pressures globally, while exposing emerging markets, including Nigeria, to capital outflows and currency volatility.
Mr Kupoluyi noted that Nigeria had benefited from high crude oil prices, warned against mismanaging the resulting windfall, urging the government to channel oil revenues into the Sovereign Wealth Fund, critical infrastructure and diversification initiatives to reduce import dependence and support long-term growth.
On monetary policy, the chamber’s president commended the Central Bank of Nigeria’s Monetary Policy Committee for reducing the Monetary Policy Rate by 50 basis points to 26.5 per cent at its February meeting.
He described the move as a cautious but important shift, reflecting growing confidence amid improvements in inflation and external sector performance.
Mr Kupoluyi also highlighted improvements in the foreign exchange market, noting that the naira had shown relative stability and appreciated to about N1,350.79 to the Dollar in the official market.
He said the performance reflects improved liquidity, investor confidence and the impact of ongoing reforms, but called for stronger policy coordination, increased FX inflows and fiscal discipline to sustain stability.
On fiscal operations, the LCCI president raised concerns over weak capital budget implementation, citing the rollover of N7.71 trillion in unexecuted 2025 capital projects.
He said delays in fund releases, bureaucratic bottlenecks and inefficiencies had continued to undermine project delivery and strain contractors.
He urged the government to develop a more effective framework for capital budget releases to ensure timely funding and execution of projects.
Addressing the oil and gas sector, Mr Kupoluyi welcomed the ongoing reform efforts aimed at boosting crude oil production and improving regulatory processes.
He called for a fully digital regulatory ecosystem to enhance transparency, accelerate approvals and restore investor confidence.
The official added that high global oil prices presented an opportunity for Nigeria to strengthen its position as a major supplier, provided local production and refining capacities are improved.
The LCCI president, however, expressed concern over high import duties on paper, printing materials and related inputs, noting that the policy had increased production costs across several value chains.
“The situation is worsened by port delays, multiple regulatory checks and inconsistent tariff classifications.
The chamber also called for a review of import duties, integration of regulatory agencies into the National Single Window and measures to reduce cargo clearance timelines.
“A balanced policy mix of moderate tariffs, support for local production and stable macroeconomic conditions would enhance industrial growth and reduce business costs,” he said.
He also reiterated its commitment to continued engagement with government and stakeholders to promote policies that support a thriving business environment.
By Aduragbemi Omiyale
New independent research has revealed that the parent company of Facebook, WhatsApp, and Instagram, Meta, contributes about $820 million to the Nigerian economy every year.
In the new report titled Nigeria’s Digital Economy, conducted by Public First, it was discovered that about 14 million Nigerian small and medium enterprises (SMEs) used Meta’s apps like Facebook, Instagram, WhatsApp, Messenger, Meta AI, and Threads, to start and grow their businesses in 2025, contributing $2 billion to the country’s gross domestic product (GDP) and delivering an estimated $640 million in productivity gains through more efficient instant messaging.
Business Post gathered from the study released in Abuja on Thursday that the adoption of artificial intelligence (AI) is set to add about $22 billion to Nigeria’s DGP by 2035.
It was observed that virtually all Nigerian businesses surveyed confessed that Meta’s platforms have expanded their customer reach, with the company’s platforms functioning as essential digital infrastructure connecting Nigerian entrepreneurs to customers, markets, and new economic opportunities.
WhatsApp is Nigeria’s gateway to AI
WhatsApp is playing a central role in connecting Nigerians to AI and new economic opportunities across the region. The platform serves as Nigerians’ primary AI surface — reflecting the wider regional pattern where 93 per cent of Meta AI prompts in Sub-Saharan Africa are made via WhatsApp — demonstrating how AI adoption in Nigeria is happening through the tools people already use every day.
“Nigeria is one of the most dynamic, entrepreneurial and digitally engaged markets in the world — and this research makes clear the scale of what is possible when Nigerian ambition meets the right digital tools.
“From a tailor in Lagos reaching customers across the country through Instagram, to a small business owner in Kano taking orders on WhatsApp, to a creator in Abuja building a global audience on Facebook — Meta’s platforms are removing the traditional barriers to growth and unlocking real economic opportunity,” the Director of Public Policy for Sub-Saharan Africa at Meta, Balkissa Ide Siddo, said.
The fact that 80 per cent of Nigerians say access to reliable internet has improved compared to a decade ago speaks to the progress already made, and with continued investment in connectivity, smart policy that supports innovation, and the rise of open-source AI built for and by Africans, Nigeria is exceptionally well positioned to lead the continent’s next decade of digital growth. We are proud to be a long-term partner in that journey,” Ide Siddo added.
AI and Nigeria’s next growth frontier
The research highlights the transformative potential of artificial intelligence for Nigeria’s economy and innovation ecosystem.
SMEs are reaching new customers across Nigeria
For Nigerian small businesses, Meta’s platforms have become a primary sales and discovery channel. 81 per cent of online businesses surveyed said Facebook, Instagram, and WhatsApp have expanded their customer base beyond their local geography — reducing customer acquisition costs and giving a business in Kano access to the same advertising and commerce tools available to businesses in Lagos, London or New York.
“Nigeria’s digital transformation is creating new opportunities for businesses, creators and consumers alike. The findings show that Meta’s platforms are helping Nigerian firms grow across formal and informal sectors, supporting entrepreneurship and strengthening participation in one of the world’s most rapidly expanding digital economies.
“With the right combination of infrastructure, platform access and open-source AI, the upside for Nigeria is significant,” a Director at Public First, Alison Neyle, stated.
By Adedapo Adesanya
Nigerian energy giant, Oando Plc, says it is reporting rising revenues as global crude buyers increasingly turn away from the volatile Middle East in search of safer supply sources.
According to the chief executive of Oando, Mr Wale Tinubu, the crisis around the Strait of Hormuz has damaged the Gulf region’s long-standing reputation as the world’s safest and most reliable oil-producing hub, leading to demand elsewhere.
Speaking in a recent interview on the sidelines of the Africa CEO Forum in Kigali, Rwanda, Mr Tinubu disclosed that Oando is already benefiting financially from the geopolitical tensions.
“We are certainly getting a windfall increase in our revenues,” Mr Tinubu said.
According to him, mounting security concerns around the Strait of Hormuz have forced buyers to reconsider their dependence on Middle Eastern crude. The waterway accounts for around 20 per cent of global crude and liquified natural gas (LNG) flows, mostly to Asian markets.
“The Middle Eastern premium you got from being a stable environment to produce hydrocarbons has been shattered,” he added.
The conflict is rapidly reshaping global energy trade flows, with African producers, particularly Nigeria, emerging as alternative suppliers at a time of heightened uncertainty in the Gulf.
Indonesia recently took in some Nigeria crude to cushion against the impact that disruptions are having on fuel supplies.
Mr Tinubu said Oando is rolling out a seven-well drilling campaign aiming to add 10,000 barrels per day by the end of the year.
Oando is also looking to raise up to $750 million to execute a 100-well onshore drilling campaign, aiming to triple its oil and gas output from 32,000 barrels of oil equivalent per day to nearly 100,000 barrels of oil equivalent per day.
According to Mr Tinubu, global supply shocks have created highly favourable conditions for securing financing and expanding operations to meet supply gaps.
By Adedapo Adesanya
Nigerian billionaire investor, Mr Femi Otedola, has announced plans to invest $100 million in the Dangote Refinery, which plans to list later this year.
Mr Otedola disclosed this on Wednesday after leading a delegation of top executives from First HoldCo on a visit to the Dangote refinery.
“On a personal note, I’ve appealed to him (Aliko Dangote). I’ve been here with him 25 times, so my compensation is he’s going to allocate to me shares worth $100 million in the private placement,” the billionaire said.
Mr Otedola had previously denied that he had any stake or funded the construction of a 650,000 barrels per day facility.
The announcement marks his next big move after increasing his stake in First Holdco as well as buying a $10 million property in London.
Mr Dangote last year said the refinery could sell up to 10 per cent stake in the listing, which is valued at about $5 billion. It is aiming for a valuation of up to $50 billion for Dangote refinery.
The billionaire is planning to make the IPO a cross-border listing to enable the refinery to draw investments from domestic and international investors.
Mr Dangote, this week, said the IPO is designed to democratise wealth creation and give Africans direct access to participate in the continent’s industrial transformation.
On his part, Mr Dangote, president of the Dangote Group, says the company is targeting a private placement of about $2 billion for the refinery.
While the actual date for the IPO is yet to be announced, Mr Otedola’s early investment indicates value and could spur other high-net-worth individuals to show interest.
Mr Otedola, an ally of Mr Dangote, led top executives of First HoldCo on a tour of the refinery and the fertiliser plants in the Lekki free trade zone area.
The team also visited key project sites such as the jetty, a facility built by Dangote industries to receive large vessels.
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