The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to implement a six-month petrol price reduction programme targeting a 15–20 per cent cut in pump prices, warning that high energy costs and persistent operational challenges continue to undermine the competitiveness of Nigerian businesses.
The Chamber proposed that the government work with domestic refiners, petroleum marketers, regulators and other relevant stakeholders to achieve a progressive and sustainable reduction in petrol prices, subject to independently verified supply costs, prevailing market conditions and the sustainability of the measures.
LCCI President, Engr. Leye Kupoluyi, outlined the proposal in the Chamber’s quarterly assessment of the Nigerian economy, arguing that existing efforts to stabilise petrol prices must go beyond cushioning immediate market fluctuations to deliver meaningful and lasting relief to businesses and households.
According to the Chamber, rising petrol and diesel prices have increased the cost of operating generators, transporting goods, distributing products and providing essential services, compounding the difficulties faced by manufacturers, small businesses and other private-sector operators.
The LCCI acknowledged the Federal Government’s proposed petrol price-stabilisation mechanism, which is intended to shield consumers and businesses from the immediate impact of fluctuations in international crude oil prices and foreign exchange rates.
However, it warned that the proposed mechanism alone might not bring pump prices down to levels capable of providing substantial economic relief.
The Chamber also raised concerns that arrangements requiring refiners and importers to absorb temporary cost increases and recover them when market conditions improve could create deferred financial obligations that might eventually put renewed pressure on prices.
It called for transparent accounting and clearly defined limits on such obligations to prevent the stabilisation arrangement from creating additional cost pressures in the future.
Energy Costs Continue to Undermine Business Competitiveness
The LCCI identified energy expenditure as one of the most significant constraints confronting Nigerian businesses, alongside high logistics costs, expensive financing, unreliable electricity and structural weaknesses in infrastructure.
Businesses that depend on alternative power sources to supplement electricity from the national grid face additional expenditure on fuel, equipment maintenance and operations.
These costs can reduce profit margins, limit production capacity and weaken the ability of local manufacturers to compete with imported products.
The Chamber therefore called for a broader energy-cost reduction programme encompassing more reliable electricity supply, accelerated gas-to-power development, improved domestic refining efficiency, greater competition and lower distribution costs.
It maintained that businesses require energy prices that support competitive production rather than policies that merely postpone the impact of higher costs.
The proposal comes amid wider concerns about the relationship between energy prices, transportation expenses and the cost of essential goods and services.
For manufacturers, higher energy and logistics expenses can increase the cost of raw materials and finished products. Small and medium-sized enterprises are particularly vulnerable because they often have limited access to affordable financing and fewer resources to absorb unexpected increases in operating costs.
The Chamber argued that reducing these pressures would help improve productivity, support investment and create a more favourable environment for enterprise expansion.
Weak Purchasing Power Adds to Business Pressures
Beyond production costs, the LCCI warned that declining consumer purchasing power was weakening demand across several sectors of the economy.
It noted that high expenditure on food, transportation, housing and energy has reduced the amount households can spend on other goods and services.
This situation has implications for retail trade, manufacturing, hospitality, entertainment and other consumer-facing industries.
When household spending becomes increasingly concentrated on essential items, businesses may experience lower sales volumes, tighter cash flows and reduced incentives to expand operations.
The Chamber said economic policies should therefore complement macroeconomic reforms with measures that strengthen productive employment, reduce supply-chain costs and improve household incomes.
It stressed that improvements in headline economic indicators would have limited impact if businesses continued to struggle with weak demand and high operating expenses.
LCCI Raises Concerns Over Multiple Taxation
The Chamber also identified multiple taxation and overlapping regulatory charges as major obstacles to business growth.
According to the LCCI, businesses continue to face concerns over levies imposed by different levels of government and public agencies, alongside administrative bottlenecks that increase compliance costs and create uncertainty.
The Chamber cited the Central Bank of Nigeria’s September 2026 Business Expectations Survey, which it said identified high and multiple taxation as firms’ most pressing constraint, ahead of insecurity and interest rates.
It also highlighted complaints from manufacturers operating in Apapa, Lagos, over trucks being stopped by multiple agencies and non-state actors along routes linking ports to factories.
Industry operators, according to the Chamber, estimated that renewed congestion along the port corridor had cost approximately ₦100 billion.
To address the problem, the LCCI called on the Joint Revenue Board and state governments to publish consolidated schedules of lawful levies, strengthen enforcement against illegal collections and establish a tax ombudsman.
It also advocated a single consolidated bill for port-related charges and a no-tout zone across Lagos industrial and port areas.
The Chamber maintained that tax reforms should simplify compliance, improve transparency and support revenue mobilisation without unnecessarily discouraging investment, production and business formalisation.
Expensive Credit Continues to Constrain SMEs
The LCCI further warned that access to affordable credit remains a significant challenge despite the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate by 350 basis points, from 26.5 per cent to 23 per cent.
While acknowledging that a lower policy rate could improve financial conditions, the Chamber cautioned that the adjustment would not automatically translate into cheaper loans or increased lending to businesses.
It explained that commercial banks consider several factors when assessing credit applications, including borrowers’ cash flows, collateral, credit histories, repayment capacity and the risks associated with their operating environments.
According to the Chamber, insecurity and policy uncertainty can also influence lenders’ willingness to extend credit, particularly to small and medium-sized enterprises.
The LCCI urged monetary authorities, development finance institutions and commercial banks to strengthen credit delivery to the real sector, prioritising working capital, equipment acquisition, agricultural value chains, export-oriented manufacturing, technology adoption and SME expansion.
It argued that Nigeria would struggle to achieve the scale of industrial growth and employment creation it needs if financing for productive investment remained prohibitively expensive.
Public Debt and Infrastructure Spending Under Scrutiny
The Chamber also expressed concern over the country’s rising public debt and the implications of higher debt-servicing costs for private-sector financing and infrastructure development.
Citing figures in its economic assessment, the LCCI said Nigeria’s total public debt stood at ₦166.79 trillion as of June 30, 2026, up by ₦14.39 trillion from ₦152.40 trillion in June 2025.
It also cited figures showing that interest payments rose to ₦7.7 trillion in the first half of 2026, compared with ₦5.6 trillion in the corresponding period of 2025.
The Chamber warned that higher government borrowing and debt-service obligations could constrain spending on infrastructure, electricity, transportation and other investments needed to improve productivity.
It called for better fiscal discipline, improved public expenditure and more predictable implementation of capital projects.
The LCCI also urged the Federal Government to publish a verified schedule for settling outstanding contractor arrears, release 2026 capital funds according to a predictable quarterly timetable and publish quarterly budget implementation reports with project-level performance indicators.
Economic Growth Must Translate Into Tangible Benefits
The Chamber acknowledged improvements in some macroeconomic indicators, including economic growth, foreign exchange stability, external reserves and the moderation of inflation.
Its assessment cited economic growth of 4.2 per cent in the first half of 2026, compared with 3.9 per cent in 2025, while headline inflation eased marginally from 15.43 per cent in July to 15.39 per cent in August.
It also reported that Nigeria’s gross external reserves strengthened to approximately $55 billion by the end of September 2026.
However, the LCCI stressed that stronger macroeconomic indicators do not automatically translate into higher household incomes, improved business performance or sufficient employment.
It argued that the next phase of economic reforms should focus on converting stabilisation gains into lower operating costs, stronger domestic production, improved access to finance, export diversification and employment creation.
The Chamber consequently called on the government to strengthen agricultural productivity, improve logistics infrastructure, address insecurity in food-producing communities and expand support for manufacturing and small businesses.
It also urged the Federal Government to deepen consultations with organised business and establish measurable targets for assessing the outcomes of economic policies.
The LCCI maintained that the private sector remains a critical partner in generating investment, employment, exports and government revenue.
It said the overriding priority for the final quarter of 2026 should be to ensure that improvements in the broader economy translate into practical benefits for businesses and households.
