Independence: How to change Nigeria’s economic fortunes

As Nigeria marks its 66th Independence Anniversary, economic experts and the Lagos Chamber of Commerce and Industry (LCCI) have called for a decisive shift from economic stabilisation to production, productivity and job creation to improve the fortunes of the country.

They said Nigeria’s economic challenges were rooted in decades of dependence on crude oil, inadequate infrastructure, inconsistent policies and underinvestment in productive sectors, urging governments at all levels to create an environment that would enable businesses to produce competitively and employ more Nigerians.

The LCCI, in its Independence Day statement signed by its President, Engr. Leye Kupoluyi, acknowledged that recent economic reforms had produced encouraging signs of macroeconomic stabilisation, including stronger Gross Domestic Product growth, moderation in inflation, improved external reserves and greater stability in the foreign exchange market.

It, however, warned that macroeconomic gains would have limited meaning unless they translated into improved purchasing power, lower production costs and more jobs.

“The 66th anniversary provides an important opportunity to reflect on the state of our economy and the conditions confronting businesses, households, and investors,” the Chamber said.

It noted that although inflation had moderated, the prices of essential goods and services remained high, with food, transportation, housing, healthcare, education and energy consuming a growing proportion of household incomes.

The LCCI also expressed concern over rising energy and transportation costs, noting that petrol prices around N1,400 per litre in parts of the country and diesel prices above N2,000 had significant implications for manufacturing, logistics, agriculture and retail prices.

It therefore called for measures to reduce the structural costs embedded in the prices of goods and services, rather than focusing solely on lowering the inflation rate.

The Chamber identified the high cost of electricity, diesel, logistics, finance, imported raw materials, machinery, regulatory compliance and multiple taxes as major constraints on businesses, particularly manufacturers and micro, small and medium enterprises.

It urged the government to complement the recent reduction in the Monetary Policy Rate to 23 per cent with measures that would enable businesses to access affordable credit.

According to the LCCI, the National Credit Guarantee Company should play a stronger role in expanding access to finance for small businesses and productive-sector enterprises.

It also called for a comprehensive industrial competitiveness programme based on reliable energy, affordable long-term finance, predictable trade and tariff policies, development of local supply chains and industrial infrastructure.

The Chamber said manufacturing must become a central component of Nigeria’s job creation strategy.

“We need to produce more in Nigeria, employ more Nigerians, and reduce the country’s dependence on imported goods,” it said.

Similarly, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said Nigeria had paid a heavy price for its dependence on oil revenue, inconsistent policies and inadequate investment in infrastructure.

In his 66th Independence policy note titled Nigeria at 66: From Economic Stabilisation to Shared Prosperity, Yusuf said fluctuations in crude oil prices had repeatedly disrupted government budgets and foreign exchange supply.

He acknowledged the impact of petrol subsidy removal, exchange rate reforms and revenue measures under the current administration, saying they had addressed some long-standing fiscal and foreign exchange distortions.

He noted that real GDP growth rose from 3.38 per cent in 2024 to 3.87 per cent in 2025 and 4.43 per cent year-on-year in the second quarter of 2026, while headline inflation stood at 15.39 per cent in August and the Central Bank of Nigeria’s policy rate was reduced to 23 per cent in September.

However, Yusuf said the gains had not translated sufficiently into relief for households and businesses.

He argued that lower inflation did not mean lower prices, as households were still dealing with elevated costs of food, transportation, electricity and other essentials, while businesses faced rising input, distribution and financing costs.

He called for sustained investment in power, security, ports, logistics, agricultural production, industrial competitiveness and skills development.

The Chief Economic Strategist at the ECOWAS Commission, Prof. Ken Ife, also traced Nigeria’s economic difficulties to the decline of agriculture and manufacturing, particularly the failure to invest adequately in infrastructure required to support production.

Speaking on Nigeria at 66, Ife recalled that the country was a major exporter of agricultural commodities in the 1960s but gradually abandoned the sector following the emergence of oil as the dominant source of revenue.

He said the problem was not simply the discovery of oil but the failure to continue investing in agriculture, mechanisation, storage, transportation and other infrastructure needed to sustain production.

According to him, Nigeria also failed to build the quality infrastructure required to meet changing international standards, including sanitary and phytosanitary requirements and technical specifications.

Ife said the country’s manufacturing sector suffered further setbacks following economic liberalisation, as cheap textile imports contributed to the collapse of domestic industries and the loss of hundreds of thousands of jobs.

He argued that Nigeria’s experience showed the danger of excessive dependence on imports and called for stronger domestic productive capacity.

However, he pointed to the banking, telecommunications and financial technology sectors as evidence that Nigerian businesses could achieve significant growth when policies, infrastructure and investment aligned.

He noted that the liberalisation of telecommunications and the expansion of digital financial services had transformed economic activities, while Nigeria had emerged as a major African technology and fintech hub.

For the LCCI, the next phase of reforms should therefore focus on converting economic stability into broad-based prosperity.

It urged the government to reduce transportation costs through mass transit and cleaner vehicles, improve food production and distribution, moderate energy costs, protect workers’ purchasing power and strengthen targeted social protection.

The Chamber also called for greater efficiency in government services, saying businesses should be able to obtain licences, pay taxes, import inputs, export products, access finance and resolve commercial disputes without excessive administrative delays.

It stressed that Nigeria’s long-term prosperity would depend on moving from an economy driven largely by consumption and government expenditure to one increasingly driven by investment, production, exports and private-sector job creation.