LCCI Seeks Urgent Response To Power Supply Shortages, Rising Costs

The Lagos Chamber of Commerce and Industry (LCCI) has forwarded a proposal to the government seeking for urgent measures against decelerating energy supply especially to the productive sectors.

Beside energy crises, the Chamber listed several other important problems that the federal government should immediately implement to reduce the cost of doing business, support small and medium-sized enterprises (SMEs) and stimulate economic recovery in Nigeria.

The LCCI, called for urgent government action to address rising operating expenses, improve the business environment and strengthen productive activities as the country enters the final quarter of 2026.

The director-general of LCCI, Dr Chinyere Almona, said coordinated policy measures were necessary to ease production constraints and improve conditions for businesses across the country.

Key demands of the Chamber include reducing energy and transportation costs, accelerating support for manufacturing and SMEs, sustaining disinflation while protecting productive investment, improving the tax and regulatory environment, strengthening agricultural value chains and promoting public-private sector dialogue.

Speaking on energy and logistics costs, Almona called for improved electricity supply, stronger domestic refining and distribution efficiency, better transport infrastructure and the removal of unnecessary charges across supply chains.

She said government efforts to moderate petrol price volatility should translate into lower and more predictable energy costs for businesses.

The chamber also urged the Federal Government to expand support for manufacturers and SMEs through affordable financing, reliable electricity, improved industrial infrastructure and more efficient import and export procedures.

The LCCI, called on development finance institutions to provide transparent financing arrangements for viable businesses, with interventions focused on improving productivity, production capacity, technology adoption and employment.

On inflation and investment, Almona said monetary policy should remain consistent with price stability while considering the effects of interest rates on credit availability for productive businesses.

She added that fiscal policy should complement monetary measures by addressing supply-side constraints, improving infrastructure and strengthening domestic production.

Regarding taxation and regulation, the LCCI, called for simplified compliance procedures, effective taxpayer education, harmonisation of overlapping charges and transparent dispute-resolution mechanisms.

She also recommended reviewing regulations that impose disproportionate costs on SMEs to encourage business formalisation, investment and expansion.

The chamber urged increased government investment in irrigation, mechanisation, storage facilities, rural roads, agricultural financing and agro-processing as well as measures to address insecurity in farming communities and improve the transportation of agricultural produce from farms to markets.

She said, reducing food prices requires an efficient agricultural value chain that minimises wastage, transportation expenses and unnecessary intermediaries.

The chamber further called for institutionalised engagement between the government and organised businesses to improve policy implementation, address operational challenges and strengthen accountability.

Almona said such engagements should provide opportunities for stakeholders to assess policy outcomes and resolve challenges affecting businesses.

The recommendations highlight some of the major challenges facing small businesses in Nigeria, particularly high electricity and transportation expenses, limited access to affordable financing and multiple regulatory obligations.

Improved electricity supply and lower logistics costs could help small manufacturers, retailers and service providers reduce their operating expenses and improve their ability to compete.

Increased access to affordable financing could also enable SMEs to purchase equipment, expand production, adopt new technologies and employ more workers.

Simpler tax procedures and harmonised charges could reduce the administrative and financial burden on small businesses, particularly those seeking to formalise their operations.

For agribusinesses, improved storage facilities, irrigation, rural roads and agricultural financing could help reduce post-harvest losses and improve access to markets.

The LCCI maintained that the next phase of economic reforms should translate macroeconomic improvements into lower business costs, stronger domestic production, higher productivity and employment