2025: NACCIMA, MAN, LCCI, And Others Chart Path For Nigeria’s Economic Recovery

Explore how NACCIMA, MAN, LCCI, and other private sector leaders are addressing economic challenges and charting a sustainable growth roadmap for Nigeria in 2025.

Prominent private sector organizations in Nigeria, including NACCIMA, MAN, LCCI, and ASBON, have developed a strategic framework for economic recovery and growth in 2025. This follows a challenging 2024, which was marred by declining business productivity, rising costs, and an unstable macroeconomic environment.

Challenges Faced by Nigerian Businesses in 2024

Throughout 2024, businesses in Nigeria faced numerous challenges, including:

High costs of production: Driven by infrastructure deficits, naira devaluation, and surging energy costs.
Inflation and monetary policies: Galloping inflation and high interest rates limited access to affordable financing.
Foreign exchange volatility: FX fluctuations drove up import costs, further straining profit margins.
Shrinking consumer purchasing power: Multinational companies like Kimberly-Clark and Guinness Nigeria exited the market, citing unfavorable business conditions.

These issues, coupled with insufficient energy supply and rising logistics costs, stifled economic expansion. The Purchasing Managers’ Index (PMI) revealed contractions in business activities for seven months in 2024, signaling an urgent need for reform.

Manufacturing Sector’s Decline

The manufacturing sector experienced a significant decline, with growth rates dropping to 0.92% in Q3 2024, compared to 1.2% in Q2. Analysts attributed this slump to:

High dependency on imported raw materials.
Lack of advanced local technology.
Excessive operational costs.

MSMEs Face Tough Times

Micro, small, and medium enterprises (MSMEs) bore the brunt of Nigeria’s harsh economic climate in 2024. According to Dr. Femi Egbesola, President of ASBON, MSMEs grappled with hyperinflation, increased electricity tariffs, and mounting bank charges.

Despite these challenges, the release of the federal government’s intervention fund provided some relief. Egbesola expressed optimism for a better 2025, emphasizing the need for policy reforms tailored to MSME growth.

Calls for Strategic Reforms

The Director General of MAN, Segun Ajayi-Kadir, called for urgent reforms, including:

Stabilizing interest rates: To ensure affordable financing for manufacturers.
Tax and fiscal policy adjustments: To reduce the burden on businesses.
Increased credit facilities: Expanding the government’s intervention funds to support private-sector growth.

Ajayi-Kadir emphasized that simply raising the Monetary Policy Rate (MPR) has not addressed inflation’s root causes. Instead, he urged the government to tackle cost-push inflation factors like logistics and energy costs.

Collaborative Efforts for Economic Recovery

LCCI President Gabriel Idahosa highlighted the importance of private-public sector collaboration. He outlined key areas for investment in 2025, including:

Telecommunications: To drive digital transformation.
Oil and gas: To boost production and reduce fuel costs.
Power sector: To ensure reliable electricity supply for businesses.

Idahosa predicted an improvement in inflation rates and a gradual easing of interest rates as fiscal and monetary policies take effect.

Government’s Commitment to Economic Growth

The Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, assured business leaders of a more supportive environment in 2025. She promised actionable reforms and strategic collaboration with private-sector stakeholders to address their concerns.

Oduwole emphasized the federal government’s commitment to fostering a business-friendly ecosystem, highlighting plans to resolve pressing issues like high-interest rates and inflation.

Conclusion

Nigeria’s path to economic recovery in 2025 depends on the successful implementation of reforms and collaborative efforts between the government and private sector. Key focus areas include stabilizing monetary policies, expanding credit facilities, and investing in critical industries like telecommunications, oil and gas, and manufacturing.