Govt support fuels manufacturing growth, says LCCI president

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The Role of Manufacturing and Youth in Nigeria’s Economic Growth

Nigeria recently recorded a 3.98 per cent GDP growth, signaling positive economic developments. However, many lower-income citizens have not yet felt the benefits of this growth. To ensure that these gains are felt by all, the government must implement policies that prioritize manufacturing and support youth-driven businesses.

The GDP growth is a result of reforms initiated two years ago, including the unification of foreign exchange systems and the elimination of oil subsidies. These measures helped plug leaks in the economy and allowed for more efficient resource allocation. While the results are promising, sustained growth requires further action.

Prioritizing Manufacturing

Manufacturing should be at the forefront of Nigeria's economic strategy. The government needs to support local manufacturers by ensuring that at least 30 per cent of goods procured by federal and subnational governments come from domestic producers. This would create a ripple effect, boosting employment and income for average Nigerians.

Small and medium-sized enterprises (SMEs) that manufacture products also need access to credit. The Lagos Chamber of Commerce and Industry (LCCI) is working to educate its members on increasing production for local consumption and exploring export opportunities within Africa. This approach will help SMEs grow and contribute to the national economy.

Investing in Infrastructure

Infrastructure development is another critical area. The government should focus on projects that improve accessibility and connectivity across the country. Broadband penetration, for instance, is essential for economic growth, especially for the youth. While some areas like Lagos have good internet coverage, rural regions still lack access. Expanding broadband infrastructure will empower young people and drive innovation.

In addition to digital infrastructure, the government should invest in physical infrastructure such as roads, energy, and transportation systems. These projects reduce the burden on citizens and create jobs, contributing to overall economic stability.

Strengthening Safety Nets

To protect vulnerable households and SMEs, the government must implement effective safety net programs. With the widespread use of National Identity Numbers and mobile phones, it is now easier to deliver targeted support. Countries that have successfully reduced poverty have used similar strategies, emphasizing the importance of timely implementation over perfection.

Enhancing Data Transparency

Transparency in economic data is crucial for informed decision-making. Rebased GDP and Consumer Price Index frameworks provide better insights into the economy, but continuous dialogue between the government and institutions like the LCCI is necessary. Accurate data helps youths and entrepreneurs make informed business decisions, fostering a more dynamic private sector.

Private Sector Focus in 2026

The private sector will continue to focus on improving services for customers and shareholders. Innovation and efficiency will remain key drivers of growth. Businesses must also explore both local and international markets, leveraging frameworks like the ECOWAS Trade Liberalisation Scheme and the African Continental Free Trade Area (AfCFTA).

Leveraging AfCFTA

The AfCFTA presents significant opportunities for Nigerian businesses to expand beyond borders. By reducing trade barriers, the agreement has already increased intra-African trade from 11 per cent to around 14 per cent. The goal is to reach levels comparable to Europe, where 65 per cent of trade occurs internally. Achieving 50 per cent trade within Africa would bring prosperity to millions.

The LCCI is actively promoting cross-border initiatives to address challenges like smuggling and port bottlenecks. Harmonizing customs procedures through technology, such as using barcodes for scanning, can streamline trade and enhance efficiency.

Engineering and Industrialization

Engineering plays a vital role in industrialization. A country’s ability to produce goods domestically is a strong indicator of its development. While mineral resources are often associated with wealth, developed nations are defined by their human capital, technical skills, and manufacturing capabilities.

Nigeria’s youth, particularly in sectors like FinTech, demonstrate the potential for innovation. Companies led by young entrepreneurs are making an impact, showing how technology and knowledge can drive economic growth.

Addressing Power Sector Challenges

Decentralizing power generation is a step in the right direction. Sub-national governments can take advantage of this to provide reliable electricity in their regions. Encouraging individuals to generate their own power, whether through solar or other renewable sources, can reduce dependency on the grid and promote energy independence.

Incentives such as cashback for green energy adoption or battery imports can encourage more people to move off-grid. This shift could lead to a more sustainable and self-sufficient energy system.

Key Priorities for the LCCI

As LCCI president, one of the top priorities is increasing crude oil production and supporting local refineries. Implementing a 30 per cent procurement policy for locally manufactured goods will boost domestic industries. Additionally, expanding broadband access and providing SMEs with financing will enable them to scale up and capture the African market.

Ensuring access to foreign exchange for production is also critical. The LCCI will continue to advocate for policies that benefit members, the private sector, and Nigerian citizens.

Ultimately, the LCCI remains committed to the country’s growth, recognizing that happy and empowered citizens are the foundation of a thriving economy.