•••As LCCI laments harsh business climate

The Lagos Chamber of Commerce and Industry (LCCI) has identified high logistics costs, inadequate infrastructure, unreliable electricity supply and insecurity as major constraints undermining the competitiveness and growth of Nigerian businesses.

The chamber, in its State of the Nation economic assessment, said congestion, delays, inefficient cargo clearance, multiple charges, poor road infrastructure and administrative bottlenecks continue to increase the cost of transporting goods across the country.

President of LCCI, Leye Kupoluyi, noted that these challenges were particularly severe for manufacturers, import-dependent businesses, exporters and companies operating across multiple states, as they increase operating expenses and weaken the competitiveness of local enterprises.

He urged the government to accelerate port modernisation, improve cargo evacuation, strengthen coordination among border and port agencies, and eliminate unnecessary checkpoints and unofficial charges along major transportation corridors.

“Trade facilitation should be treated as a national competitiveness priority. Faster and more predictable movement of goods will reduce costs, improve working-capital efficiency and strengthen Nigeria’s position in regional and international markets,” the chamber said.

The LCCI also identified infrastructure deficits and unreliable electricity supply as significant setbacks to business productivity, noting that inadequate roads, inefficient public transportation, limited industrial infrastructure and weak digital connectivity continue to impose additional costs on enterprises.

“The infrastructure deficit continues to impose significant costs on businesses.

“Unreliable electricity, inadequate roads, inefficient public transportation, limited industrial infrastructure and weaknesses in digital connectivity all reduce productivity,” it stated.

To address these challenges, the chamber called for stronger coordination between public investment, private capital and infrastructure delivery, urging the government to prioritise projects capable of improving production, logistics, employment and private investment.

“The government should prioritise infrastructure projects according to their measurable impact on production, logistics, employment and private investment.

“Industrial clusters, agricultural processing zones, export corridors and commercial centres should receive particular attention,” it added.

The chamber further identified insecurity as a major threat to enterprise development, agricultural productivity and investment, warning that businesses are increasingly burdened by the additional costs of protecting their operations and maintaining supply chains.

According to the chamber, companies incur extra expenses through private security arrangements, transportation disruptions, higher insurance costs and the need to modify supply chains in response to security threats.

It noted that insecurity in agricultural communities could also restrict cultivation, harvesting and the transportation of farm produce to markets, with implications for food supply and business activities.

The chamber therefore urged the government to strengthen security across farming communities, industrial corridors, transportation routes and commercial centres to create a safer environment for productive activities.

“Security is not only a national priority; it is also a prerequisite for productive investment and economic competitiveness,” the chamber stated.

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