The federal government has been urged to adopt a multi-pronged approach to tackle insecurity in the country so as to achieve agricultural resurgence.
President of Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa gave the call while speaking during a quarterly media briefing organised by the Chamber in Lagos to address the state of the nation’s economy.
Idahosa also stressed the need for the government to introduce strategic incentives for sub-national governments, especially at grassroots levels, to channel significant investments into agricultural mechanisation, smart farming technologies, and climate-resilient crop production.
On the other hand, he appealed to the Central Bank of Nigeria (CBN) to introduce targeted incentives for financial institutions to expand credit facilities for agriculture and agro-processing industries.
This, he said could include risk-sharing mechanisms, favorable credit guarantee schemes, and structured partnerships with agritech firms to unlock untapped potentials.
Expressing the Chambers expectations from the recently created Ministry of Livestock Development, the president of LCCI said: “government has a unique opportunity to implement innovative and data-driven policies.
“These should prioritise modernising livestock and aquaculture value chains, incorporating advanced breeding technologies, and strengthening rural market access.
“Effective execution of these recommendations will not only enhance protein sufficiency but also position Nigeria as a leader in sustainable livestock and aquaculture in Africa.’’
On the increasing global economic shifts, he appealed to the government to spearhead transformative reforms in the manufacturing sector by addressing critical cost drivers such as high inflation, interest rates, multiple taxation, and exchange rate volatility.
“Strategic measures should include instituting single-digit tax regimes for manufacturing entities, stabilising the naira through proactive foreign exchange policies, and leveraging public-private partnerships to reduce production costs.”
Describing MSMEs as the backbone of Nigeria’s economy, he called for the expansion of access to credit at concessionary rates below the prevailing CBN MPR.
In his words: “introducing technology-driven lending platforms and tailored financial literacy programmes can empower MSMEs to scale operations effectively. These steps will mitigate the rising cost of production, safeguard employment, and improve the competitiveness of Nigerian products in regional and global markets.
While stating that enhancing productivity in the real sector requires a comprehensive strategy, he recommends that the government allocate significant resources from the 2025 budget towards modernising infrastructure, streamlining refinery operations, and eliminating fuel supply bottlenecks.
In addition, he said: “by fostering energy efficiency and reducing the cost of logistics, these measures will drive industrial growth, attract foreign investment, and improve the overall business environment in Nigeria.”
Lamenting Nigeria’s inflation rate, he said it rose for the fourth straight month, hitting a near 30-year high of 34.8 percent in December 2024, up from 34.6percent in the prior month.
Explaining further, he said: “food inflation, which constitutes more than 50 percent of Nigeria’s inflation basket, eased to 39.84 percent in December from 39.93 percent the month before. The marginal rise of 0.20 percent has been attributed to heightened demand for goods and services during the festive season. “The National Bureau of Statistics is currently rebasing the consumer price index used to track household expenditure.
“When the rebased figures are released in weeks from now, they are expected to be lower.’’
However, he stressed the need for the government to be courteous about getting comfortable with a lower inflation figure that may emerge as the current price situation in the country remains dire.
This continued rise in inflation, he affirmed was driven by poor crop production by farmers who are constrained by security challenges, transport costs, and the emerging impact of climate change.
He said: “beverages, produced mainly by local and multinational companies, have also recorded rising costs due to the challenging environment in which these manufacturers operate. Livestock and poultry have also been strong drivers of food prices in the past year. “The government must remain focused on boosting food production through ongoing policy reforms, targeted fiscal interventions, and better management of Nigeria’s floating exchange rate regime.
“The floating exchange rate policy adopted last year without any form of control has not shown good results till now. As an import-dependent nation, we need to consider better management approaches that fit the current profile of our economy.”
To him, boosting the supply of forex will also help strengthen the Naira if transactions in the forex market are transparent enough to reduce speculative activities.
He was optimistic that if the government harmonises its fiscal and monetary instruments to tackle the cost of agricultural production, enhance food processing, and sustain the fight against insecurity, inflationary pressures may soon begin to abate, and other economic variables can begin to record positive indicators
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