LCCI, Oyedele, others call for investment incentives to sustain economic growth
Economic experts have called on the Federal Government to adopt a deliberate and coordinated strategy to de-risk Nigeria’s business environment and introduce long-term investment incentives to maintain the country’s current GDP growth trajectory.
This position was articulated at the Lagos Chamber of Commerce and Industry (LCCI) 2025 Mid-Year Economic Review held in Lagos.
Gabriel Idahosa, President of the LCCI, acknowledged the resilience and innovation witnessed across several sectors in the first half of the year. He noted particularly the evolving technology landscape, where fintech companies, e-commerce platforms, and other digital solutions continue to reshape job creation and service delivery models. He also pointed to the creative industries and segments of the agricultural value chain as examples of strong adaptability and potential for export-led growth.
For this progress to translate into sustainable economic expansion, Idahosa maintained that deliberate and well-structured investment incentives are crucial.
“To strengthen investor confidence, we must ensure policy predictability, legal clarity, and responsive governance. Regulatory agencies should steer clear of sudden decisions that raise operational costs and business complexities,” he said.
He further stressed the importance of prioritising infrastructure financing, simplifying tax compliance, digitising public services, and initiating institutional reforms that would boost transparency and reduce governance costs.
Idahosa also identified opportunities in the African Continental Free Trade Area (AfCFTA), especially in the areas of regional trade, industrialisation, and value chain integration. He similarly pointed to climate-conscious investments and green financing as emerging growth pathways.
However, he underscored that unlocking these opportunities requires intentional and synchronised actions.
“We need to improve broadband infrastructure, scale up vocational training, promote domestic manufacturing, and support innovation hubs across the country. Local content development, diaspora engagement, and targeted investment promotion strategies are also essential. In all of this, the government should act not as a competitor, but as a facilitator and enabler of business success,” Idahosa explained.
He also drew attention to the challenges confronting the private sector, particularly small and medium-sized enterprises. According to him, SMEs continue to contend with high energy costs, regulatory ambiguity, limited access to credit, and inadequate infrastructure. These macroeconomic distortions, he said, demand urgent and harmonised responses from both fiscal and monetary authorities.
“Although the Central Bank of Nigeria has responded with tighter monetary policies and interest rate increases, inflation remains persistently high and continues to weigh heavily on private investment and household consumption,” he noted.
On the foreign exchange front, Idahosa observed that despite reforms aimed at promoting unification and transparency, the market remains plagued by illiquidity, speculation, and investor scepticism.
“Even though modest economic growth was recorded in the first half of the year, rising inflation is undermining consumer purchasing power and escalating the cost of doing business,” he added.
Dr Biodun Adedipe, Chief Consultant at B. Adedipe and Associates Limited (BAA Consult), described the Nigerian macroeconomy as exhibiting a “proven case of resilience.”
He cited key policy reforms, including the removal of fuel subsidies, bank recapitalisation, and fiscal consolidation, as measures that could stimulate competitiveness and reinforce economic fundamentals.
Speaking on the outlook for business, Dr Adedipe expressed optimism regarding non-oil exports beyond 2025, attributing this to improved macroeconomic stability, ongoing reforms, institutional strengthening, and capacity-building initiatives led by financial institutions and relevant government agencies.
He singled out the government’s current tax reforms as a potential game-changer. Referring to them as a spark for regional competitiveness—citing China’s experience as an example—he noted their transformative potential.
The Federal Government, through the Presidential Fiscal Policy and Tax Reforms Committee, has recently passed four major tax reform bills into law. These include the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
Taiwo Oyedele, Chairman of the committee, acknowledged that the reforms are still in progress. He identified exchange rate recovery, persistent inflation, and the high cost of doing business as critical issues the committee is addressing.
In his presentation at the mid-year review, Oyedele outlined reform elements such as tax harmonisation, improved competitiveness, global alignment, digitisation, and transparency measures. He said these initiatives would help level the playing field, reduce tax expenditure, remove taxes on capital, and combat corruption.
“The objective is to build a fairer, simpler, and more growth-oriented tax system that empowers businesses and supports national development,” Oyedele said.