The President of the Lagos Chamber of Commerce and Business (LCCI), Gabriel Idahosa, has projected average development for the actual sector this yr on revamped infrastructure and higher entry to overseas change.
He famous that Nigeria’s manufacturing sector skilled poor development in 2024, contributing simply 8.9 per cent to the nation’s Gross Home Product (GDP), occasioned by vital macroeconomic headwinds, together with excessive manufacturing prices pushed by inflation, FX volatility and excessive vitality prices.
Idahosa nonetheless, famous that regardless of these challenges, sub-sectors like meals processing and textiles confirmed resilience and have been supported by home demand. He, due to this fact, urged the Federal Authorities to prioritise the promotion of value stability, enchancment in ease of doing enterprise, fiscal sustainability and debt administration as a way to unlock sustainable financial development and enhance the well-being of Nigerians and companies this yr.He mentioned the removing of gasoline subsidies and protracted energy provide challenges additional strained the sector, limiting output and rising the price of regionally produced items. Entry to FX for importing uncooked supplies remained constrained, exacerbating provide chain disruptions. A number of multinational corporations additionally exited the Nigerian market.
“In 2025, the manufacturing sector is projected to develop reasonably, pushed by anticipated enhancements in infrastructure and authorities insurance policies geared toward selling native manufacturing and lowering reliance on imports. Addressing structural bottlenecks, fostering innovation and increasing public-private partnerships will probably be vital for unlocking the sector’s development potential.”
Envisaging a extra optimistic outlook for the agricultural sector this yr, he mentioned the sector is anticipated to develop tremendously, supported by authorities initiatives to reinforce meals safety, enhance rural infrastructure and broaden agricultural worth chains.
“Strengthening local weather resilience and guaranteeing entry to reasonably priced financing will probably be essential to unlocking the sector’s full potential and guaranteeing its pivotal position in Nigeria’s financial diversification agenda,” he revealed.
Noting that the sector recorded regular development in 2024, contributing at its peak, 28.65 per cent to the nation’s GDP, he mentioned this was pushed by elevated manufacturing in crops equivalent to maize, rice, and cassava, in addition to sustained funding in mechanisation and know-how adoption.
“Nonetheless, as common, development was constrained by challenges equivalent to insecurity in key farming areas, excessive enter prices and restricted entry to credit score for smallholder farmers. Inflationary pressures additionally impacted the affordability of important inputs, whereas local weather variability affected yields,” he said.
Talking on the development and actual property sectors, which he mentioned contributed 3.35 per cent and 5.43 per cent respectively to the GDP final yr, he mentioned the sector additionally confronted appreciable challenges, together with escalating prices of constructing supplies attributable to inflation and FX volatility, excessive rates of interest, delays in government-funded infrastructure initiatives and insecurity.
This yr, he mentioned the sector’s development will probably be excessive on common, supported by anticipated enhancements in macroeconomic stability, elevated personal sector participation and expanded public infrastructure initiatives.
