LCCI calls for bold policy action to consolidate Nigeria’s economic recovery
…Urges stronger regulatory framework and investment to boost CNG adoption
By Seun Ibiyemi
The Lagos Chamber of Commerce and Industry (LCCI ) has called for decisive and coordinated policy measures to consolidate Nigeria’s economic recovery and reinforce macroeconomic stability amid evolving global conditions.
The President of LCCI, Mr. Gabriel Idahosa, made the call on Thursday in Lagos during the Chamber’s State of the Economy news conference.
Idahosa stated that sustained recovery would depend on stronger synergy between fiscal and monetary authorities, improved revenue efficiency, debt transparency, and accelerated structural reforms.
He noted that the global economy showed greater resilience in the third quarter of 2025, driven by industrial production and AI-related investments in advanced and emerging markets.
“Nigeria must take advantage of this momentum by deepening reforms that enhance competitiveness, attract investment, and promote economic diversification,” he said.
He lauded the Federal Government’s progress in digitalising tax administration through e-filing, e-payment, and data-driven compliance systems.
Idahosa, however, emphasised the need to broaden the tax base, rationalise exemptions, and strengthen transparency to build public trust.
The LCCI also urged the government to prioritise concessional and productive borrowing while avoiding excessive debt accumulation that could threaten fiscal stability.
“Fiscal reforms must emphasise efficiency and accountability, while monetary policy should remain predictable and supportive of the real sector. Rather than raising taxes, emphasis should be placed on revenue efficiency through technology-driven reforms, accountability, and transparent use of public funds,” he said.
Idahosa also called for urgent measures to reduce the crowding-out of private investment, promote a competitive financial market, and expand access to credit for manufacturers, traders, and service providers.
He reiterated the need for deeper structural and institutional reforms to improve governance, safeguard the Central Bank’s independence, and ensure that policy outcomes translate into tangible benefits for citizens and businesses.
He expressed support for the International Monetary Fund (IMF) recommendations on exchange rate flexibility, monetary policy credibility, and fiscal discipline to preserve macroeconomic stability and attract long-term investment.
On fiscal policy, Idahosa said higher Federation Account Allocation Committee (FAAC) allocations would create more fiscal space for federal, state, and local governments to meet their obligations. He urged authorities to prioritise capital projects over recurrent expenditure.
“While the World Bank’s assessment says that Nigeria’s debt remains sustainable, we warn that sustainability depends on continued fiscal prudence and credible medium-term adjustment plans. Borrowing must translate into measurable economic impact through disciplined, growth-oriented debt management,” he said.
The LCCI president also called for a sound regulatory environment and greater private-sector participation to accelerate Nigeria’s transition to Compressed Natural Gas (CNG).
He noted that amidst the global drive toward decarbonisation, and following the 2023 removal of petrol subsidies, Nigeria’s CNG industry had reached a pivotal turning point with strong potential to transform the transport and industrial sectors.
Idahosa described CNG as a vital pillar of the nation’s evolving energy landscape, offering a cleaner and cheaper substitute for petrol and diesel while creating opportunities for private investment across the value chain.
“Nigeria’s CNG transition presents immense potential in gas compression, transportation, retail distribution, conversion, and maintenance services,” he said.
“Industry projections show the sector can create tens of thousands of jobs through the expansion of refuelling stations, conversion workshops, logistics, and cylinder assembly plants. LCCI notes that localising conversion kit production to achieve 40 per cent local content by 2027 would further strengthen Nigeria’s N6.7 billion automobile components industry. It will reduce foreign exchange exposure and build indigenous technical capacity.”
Idahosa, however, identified key challenges slowing adoption, including high conversion costs, estimated at about N1.5 million per vehicle, limited infrastructure, and a shortage of certified technicians, currently about 320 nationwide.
He cited regulatory fragmentation and inconsistent policy enforcement as factors undermining investor confidence and slowing market expansion.
“In spite of these constraints, Nigeria has attracted over 400 million dollars in cumulative CNG investments as of 2025, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The market fundamentals remain robust, driven by favourable economics, government incentives, and growing investor appetite for cleaner energy solutions,” he stated.
The LCCI president urged government to maintain the existing subsidy framework until wider adoption was achieved and citizens began to experience tangible benefits of CNG usage.
He called for robust engagement with relevant government agencies, including the NMDPRA, Standards Organisation of Nigeria (SON), and Nigeria Automotive Design and Development Council (NADDC).
Idahosa also called for engagement with the Federal Road Safety Corps (FRSC), transport associations, and the media to ensure inclusive implementation. He emphasised that public awareness campaigns should be intensified to promote CNG as a clean, environmentally friendly, and cost-effective energy source.
“Nigeria’s CNG journey has moved beyond the pilot stage into a structured national rollout. The combination of abundant gas reserves, sound economics, and growing private participation positions the sector for transformative growth. Realising this potential will require coordinated regulatory oversight, enhanced safety enforcement, affordable financing mechanisms, and aggressive infrastructure expansion across all regions,” he said.
Idahosa also expressed concern over the reported decline in Nigeria’s gas output to 191,385.21 million standard cubic feet (mmscf) in September 2025, from 219,280.73 mmscf recorded in August 2025.
He described the 13 per cent month-on-month decline as a worrying development for an economy seeking to expand domestic gas utilisation and boost export revenues under the “Decade of Gas” Agenda.
He attributed the drop to operational downtime, pipeline vandalism, and supply chain disruptions arising from controversies and uncertainties in the oil and gas sector in recent months.