LCCI Advises FG to Address Inflation with Increased Manufacturing Output

Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI), has advised the federal government to use the manufacturing to reduce inflationary pressure by creating the environment where industries could thrive.

The advice was given last week by the President of LCCI, Mr. Gabriel Idahosa, when he spoke on the theme: ‘Industries as Catalyst for Growth and Economic Development’.

Idahosa said: “Despite the current economic headwinds, which include high inflation, fluctuating oil prices, currency devaluation, and an unemployment crisis, Nigeria has the potential to thrive.

“However, this can only happen if we recognise and harness the transformative power of our industries. From agriculture to manufacturing, technology, and beyond, industries serve as the bedrock upon which the foundation of economic development can be built.”

He added: “In a time of economic hardship, the manufacturing sector stands as a pillar that can reduce inflationary pressures by increasing domestic production, reducing dependency on imports, and stabilising the Naira.”

The president of LCCI said that to support industrial growth, Nigeria must invest heavily in infrastructure development.  

He recommended that Public-Private Partnerships (PPPs) should be encouraged to finance large-scale projects like rail networks, roads, and power plants.

“Additionally, decentralising power generation and distribution can help improve industries’ access to energy,” he said.

Idahosa also emphasised that industrial growth could not be achieved without a skilled workforce.

“Investing in education and vocational training is crucial to ensuring that Nigeria’s labor force is equipped to meet the demands of a rapidly evolving industrial landscape.

“By partnering with industries, educational institutions can tailor curricula to align with the skills needed in manufacturing, technology, and agribusiness,” he further said.

According to Idahosa, now is the time for all government, private sector, and civil society stakeholders to work together to create an environment where industries can thrive.

He said that if Nigeria would invest in the right infrastructure, policies, and human capital, Nigeria could harness the potential of its industries to drive sustained growth and development.

“The road ahead may be difficult, but with collective effort, we can overcome the obstacles and unlock the immense opportunities that lie before our nation,” he added.

He also highlighted that agricultural production and agro-processing were also very vital to Nigeria’s industrialisation but pointed out the sector has not realised its full potential.

According to him, most agricultural activity in Nigeria remained at the subsistence level, with limited mechanisation, poor infrastructure, and inadequate access to finance. These challenges hinder the growth of agribusinesses that can scale up to compete globally.

 “One bright spot in the agricultural landscape is the rise of agro-processing industries. These industries add value to raw agricultural products by converting them into finished goods for local consumption and export.

“For example, the Dangote Rice Project aims to produce millions of tons of parboiled rice, while the Olam Integrated Rice Mill is one of the largest in Africa, producing rice for domestic markets.

“By scaling up agro-processing industries, Nigeria has the potential to feed itself and become a major player in global food markets.

“Moreover, agro-industry development can have a multiplier effect by creating jobs, reducing post-harvest losses, and boosting rural economies.

“Given Nigeria’s vast arable land, the possibilities for growth in this sector are limitless,” Idahosa said.