LCCI urges FG to cut business costs and back MSMEs amid economic reforms

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to take immediate steps to ease the burden on Micro, Small, and Medium Enterprises (MSMEs), amid ongoing economic reforms and increasing operational expenses.

Targeted support needed

In a statement responding to President Bola Tinubu’s Democracy Day address, the Director General of LCCI, Dr. Chinyere Almona, stressed the need for urgent government action in critical areas that affect business operations, including energy, logistics, and regulatory compliance.

“We recommend non-cash interventions that can ease the harsh production environment,” Dr. Almona stated. “Support for MSMEs through targeted financing, energy access, and market reforms is crucial. These enterprises form the backbone of our economy but face limited access to credit and infrastructure.”

Clearer communication and engagement

While acknowledging the reform efforts of the Tinubu administration, the LCCI called for improved communication around policy directions to reduce uncertainty. Almona urged the government to ensure regular tracking and public reporting on the progress of its reforms to build trust within the business community.

The chamber also advised the administration to engage the Organised Private Sector (OPS) in policy discussions and to institutionalise dialogue with labour unions to prevent industrial disputes.

LCCI’s key recommendations

Reduce business costs tied to energy, transport, and regulatory compliance
Expand social protection for households affected by inflation
Increase funding for essential services like healthcare and education
Focus investments in oil and gas, power, and agriculture
Promote collaboration among government, private sector, and civil society

“The economic reforms are commendable, and though they present short-term challenges, we remain optimistic about their long-term benefits,” Almona added.

The LCCI linked economic progress to political stability, urging continued reforms that protect citizens and support local businesses.