Nigeria to achieve 2026 growth outlook with reforms – LCCI

Amid global uncertainties, the Lagos Chamber of Commerce and Industry(LCCI), says Nigeria can meet 2026 growth projections through coordinated reforms, stronger institutions, and deeper private-sector-driven economic expansion nationwide growth.

The President, LCCI, Mr Leye Kupoluyi, said this on Thursday in Lagos at the chamber’s 2026 first quarter news conference.

Kupoluyi said that Nigeria must effectively leverage the opportunities presented by the global environment to exceed projected growth in 2026.

He noted that in 2025, the global economy demonstrated unexpected resilience amidst significant and persistent headwinds.

He said that overall, 2025 was characterised by steady but slow global growth, constrained by geopolitical tensions, trade fragmentation, and structural weaknesses.

According to him, while the global economy avoided a sharp downturn, growth remained below pre-pandemic levels.

Kupoluyi stressed the need for sustained reforms, enhanced international cooperation, and policies to boost investment, productivity, and inclusive growth.

He affirmed that for Nigeria, the global environment presented both risks and strategic opportunities.

“Effectively, leveraging these opportunities will require deliberate, coordinated policy actions, strengthened institutions, and robust private-sector-led growth strategies.

“There is also the need to improve competitiveness, boost investment, and foster inclusive and sustainable economic growth,” he said.

On monetary policy, the LCCI president noted that the Monetary Policy Rate was maintained at 27.0 per cent during the period under review.

He said while the development strengthened anti-inflation efforts, it also heightened cost of borrowing, suppressed aggregate demand, slowed business expansion and exerted downward pressure on household consumption.

“These effects could weigh on economic recovery, particularly in interest-sensitive sectors such as manufacturing, real estate, and consumer goods,” he said.

Kupoluyi urged government to remain focused on curbing inflationary pressures driven by factors including high energy costs, high interest rates and pass-through effects from a highly depreciated but stable currency.

He said Nigeria must also sustain policies that had supported agricultural food production and the supply of fuels in the economy.

He added that businesses needed a cushioning effect from an easing cost of doing business, adding that citizens should begin to experience stable prices for goods and services.

On the foreign exchange market, he acknowledged the relative stability of the exchange rates in 2025, reflecting improved transparency in the foreign exchange market and stronger policy credibility.

Kupoluyi said these gains were further supported by the significant increase in external reserves, which rose to $45.5 billion by the end of 2025.

According to him, it enhanced the Central Bank’s capacity to manage liquidity, boost market confidence, and cushion the economy against external shocks.

He said the chamber was encouraged by the strong emphasis on production-oriented spending, with capital expenditure of N26.08 trillion, significantly outweighing non-debt recurrent spending of N15.25 trillion.

Kupoluyi, however, advised that deficit financing should not be entirely funded by debt, but should also consider equity financing and other cheaper sources.

“Overall, the 2026 budget presents a credible opportunity to move Nigeria from recovery to expansion.

“Its success will depend less on the size of allocations and more on execution discipline, capital efficiency, and sustained support for productive sectors,” he said.

On Nigeria’s debt portfolio, the LCCI president noted its public debt of N152.40 trillion, reflecting both fresh borrowings and the impact of a depreciating exchange rate on external debt obligations.

He stated that the country’s public debt remained a concern to watchers of the economy, especially regarding its sustainability, servicing, and high cost of borrowing.

Kupoluyi urged government to explore other sources and forms of borrowing beyond the debt financing option.

“In view of these trends, we strongly urge the government to intensify efforts to expand non-oil revenue, improve tax efficiency and compliance, and curb recurrent expenditure.

“Strengthening fiscal discipline, closing leakages, and enhancing public financial management will be crucial to sustainably funding national development priorities without excessive dependence on borrowing,” he said.

On the country’s new tax regime, Kupoluyi called on businesses to continue their operations and remain formal with the tax authorities as implementation commences.

He described the tax process as an essential reform to update the fiscal framework, enhance competitiveness, and increase revenue.

“However, successful implementation requires clarity, transparency, collaboration, and business-focused execution to achieve economic benefits without stifling growth,” he said.

The LCCI president identified agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as key growth drivers in 2026.

He stated that unlocking these sectors would require decisive execution of scaling irrigation and agro-value chains and reducing power and logistics costs for manufacturers.

Kupoluyi emphasised the need to accelerate infrastructure delivery through public-private partnerships, sustain oil and gas sector reforms, and align education and skills development with private-sector needs.

He added that Nigeria must strengthen macroeconomic stability and policy credibility, deepen value addition and non-oil exports and improve infrastructure governance and financing.

“In 2026, the country must also strengthen institutions and the business environment and position itself as a regional manufacturing and logistics,” he said.

Kupoluyi also urged the Federal Government to deliberately position Nigeria as a regional hub for Artificial Intelligence.

He said that this could be achieved through a coordinated and strategic approach that integrates policy formulation, infrastructure development, human capital investment, and private sector participation.