LCCI Projects 3% GDP Growth, Task FG on Medium-term Growth Plan

Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) has projected that Nigeria would record a positive GDP growth in 2024 that would be above 3.0 per cent.

This was declared by the President of LCCI, Mr. Gabriel Idahosa, during the chamber’s 136 Annual General Meeting (AGM), where he tasked the federal government on medium-term growth plan that would promote economic growth.

Idahosa said: “We believe the economy will end the current year 2024 in a positive growth territory in the region of 3.0 per cent and 4.0 percent. Achieving faster recovery requires the fiscal and monetary sides of the economy to promote growth-enhancing and confidence-building policies that would encourage private capital flows to the economy.”

He added: “Fiscal and monetary authorities need to develop a medium-term growth plan anchored on boosting local production, supporting ease of doing business, attracting private investment, developing infrastructure, business-friendly regulatory policies, economic diversification, and employment generation.”

He stated that Nigeria is currently running a business environment that is very difficult for businesses to thrive with the Central Bank of Nigeria’s monetary policy rate at 27.25 percent, inflation over 34 percent, an exchange rate above N1660 per Dollar, and an unemployment rate at 5.3 percent.  

He said that this has resulted in the decline of the productivity of the private sector, which dropped 46.9 in November 2024 from 49.8 it recorded in October 2024, “representing the most pronounced deterioration in business conditions since March 2023 as reported in the Stanbic IBTC Bank Nigeria PMI. The latest reading pointed to the fourth consecutive month of contraction in the index, marking the most significant decline since March 2023.”

Idahosa also observed that the largest amount of capital importation that has been so far recorded in 2024 was received through portfolio investment, which accounted for 53.93 per cent ($1,404.70 million).

“The concern here is that FDIs (at a low of 1.15 per cent) are more valuable than the other types of investment inflows. We need more FDIs to create jobs and increase output in the economy,” Idahosa said.