LCCI projects moderate growth for manufacturing sector in 2025
The Lagos Chamber of Commerce and Industry (LCCI) has projected moderate growth for the manufacturing sector in 2025 predicated on improved infrastructure and enhanced access to foreign exchange, among other factors.
President of LCCI, Gabriel Idahosa, made the prediction in a new year statement on the economy.
He noted that Nigeria’s manufacturing sector experienced sluggish growth in 2024, with about 8.9% contribution to the gross domestic product (GDP), occasioned by significant headwinds, including high production costs driven by inflation, foreign exchange volatility, and energy shortages.
Idahosa, however, noted that despite these challenges, sub-sectors like food processing and textiles showed resilience and were supported by domestic demand.
He therefore urged the federal government to prioritise the promotion of price stability, improvement in ease of doing business, fiscal sustainability and debt management in order to unlock sustainable economic growth and improve the well-being of Nigerians in 2025.
His words: “The removal of fuel subsidies and persistent power supply challenges further strained the sector, limiting output and increasing the cost of locally produced goods. Access to foreign exchange for importing raw materials remained constrained, exacerbating supply chain disruptions. Several multinational companies exited the Nigerian market. Despite these challenges, specific sub-sectors like food processing and textiles showed resilience, supported by domestic demand.
“Looking ahead to 2025, the manufacturing sector is projected to grow moderately, driven by anticipated improvements in infrastructure, enhanced access to foreign exchange, and government policies aimed at promoting local production and reducing reliance on imports.
“Addressing structural bottlenecks, fostering innovation, and expanding public-private partnerships will be critical for unlocking the sector’s growth potential.”
Idahosa envisaged a more optimistic, if cautious, outlook for the agricultural sector in the new year.
According to him, the sector is expected to grow tremendously, supported by government initiatives to enhance food security, improve rural infrastructure, and expand agricultural value chains.
“Strengthening climate resilience and ensuring access to affordable financing will be crucial to unlocking the sector’s full potential and ensuring its pivotal role in Nigeria’s economic diversification agenda,” he added.
The LCCI president noted that the agric sector recorded steady growth in 2024, contributing at its peak of 28.65% to the nation’s GDP, driven by increased production in crops such as maize, rice, and cassava, as well as sustained investment in mechanization and technology adoption.
“However, growth was constrained by challenges such as insecurity in key farming regions, high input costs, and limited access to credit for smallholder farmers. Inflationary pressures also impacted on the affordability of essential inputs, while climate variability affected yields,” he stated.
