LCCI Calls For Rate Easing, Credit Expansion To Support Businesses In 2026

The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government and the Central Bank of Nigeria (CBN) to begin a gradual easing of interest rates and expand credit to the private sector in 2026, warning that economic stability achieved in 2025 must now translate into inclusive growth for businesses and households.

Reviewing economic developments in 2025 and outlining priorities for the new year, the Chamber said Nigeria had made important progress through difficult but necessary reforms, including fuel subsidy removal, foreign exchange liberalisation and tight monetary policy.

However, it stressed that growth remained too weak to lift incomes or significantly reduce poverty.

LCCI noted that economic performance in 2025 reflected cautious stabilisation rather than broad-based recovery. Gross Domestic Product growth averaged 3.78 per cent in the first three quarters of the year, up from 3.47 per cent in 2024, with output rising to 3.98 per cent in the third quarter.

Despite the improvement, the Chamber said growth was still below population expansion, underscoring the absence of inclusive gains.

According to the business group, fiscal performance also fell short of supporting a stronger recovery.

By the third quarter of 2025, government revenue stood at N18.6trn, about 61 per cent of the full-year target, while expenditure reached N24.66trn, representing 60 per cent of the budget.

Capital spending remained particularly weak, with only N3.10trn, or 17.7 per cent of the allocation, released by September, constraining infrastructure delivery and private sector confidence.

Public debt sustainability emerged as a major concern. LCCI said Nigeria’s total public debt rose to about N152.39trn as of June 2025, with debt servicing consuming more than 65 per cent of government revenue.

While debt-to-GDP ratios appeared moderate following the rebasing of the economy, the Chamber warned that the heavy debt-service burden severely limited fiscal space for growth-enhancing investments.

The Chamber acknowledged several positive policy milestones in 2025, including the rebasing of GDP and inflation data by the National Bureau of Statistics, Nigeria’s exit from the Financial Action Task Force grey list, and reforms in the financial markets such as banking and insurance recapitalisation, the enactment of the Investment and Securities Act, and the transition to a T+2 settlement cycle.

It also highlighted the expansion of domestic refining capacity, led by the Dangote Refinery, which reduced fuel imports and eased pressure on foreign exchange demand.
Despite these gains, LCCI said Nigerian businesses continued to face severe headwinds.

Inflation remained the top challenge for many firms, even as headline inflation moderated sharply to about 14.5 per cent by November.

Elevated food, transport and energy costs continued to erode purchasing power and compress margins. Exchange rate volatility and earlier naira depreciation raised the cost of imported inputs, while insecurity in food-producing regions disrupted supply chains and worsened food inflation.

Poor power supply, weak transport infrastructure and policy inconsistencies also increased operating costs and discouraged long-term investment.

Looking ahead, the Chamber called for stronger coordination between fiscal and monetary authorities in 2026 to consolidate disinflation while gradually easing interest rates to stimulate investment and unlock private sector credit.

It said improving security and supporting agriculture and rural infrastructure were critical to stabilising food supply chains and reducing inflationary pressures.

LCCI also urged the government to deepen confidence in the foreign exchange market by sustaining transparent, market-driven policies, promoting export diversification and supporting non-oil exporters.

It stressed the need to accelerate infrastructure development in power, transport and logistics through public-private partnerships to lower the cost of doing business.

The Chamber further emphasised the importance of effective implementation of the Tax Reform Act scheduled to take effect in January 2026, noting that a simplified and transparent tax framework would reduce compliance burdens, broaden the tax base and support productive enterprises without stifling growth.

According to LCCI, policies in 2026 must deliberately focus on inclusive growth by rebuilding household purchasing power, strengthening social safety nets and accelerating job creation, particularly for youth and small and medium-sized enterprises.

The President of LCCI, Engr. Leye Kupoluyi, said 2025 marked a turning point from crisis management to cautious stabilisation, adding that the challenge for 2026 was to ensure that macroeconomic reforms deliver tangible benefits.

He expressed optimism that with disciplined policy execution, enhanced security, infrastructure expansion and a clear focus on credit growth, Nigeria could move beyond stability and make 2026 the year when businesses and households begin to feel the full benefits of reform.