- High energy tariffs and unreliable electricity continue to hold back manufacturing.
- Experts stress that private investment and structural reforms are essential for stability.
Nigeria’s energy tariff crisis continues to weigh heavily on the manufacturing sector, and, as a result, leaders at the Lagos Country Club Business Forum raised fresh concerns. Consequently, production costs have intensified pressure on firms, while experts argue that structural failures must be addressed urgently. Many businesses struggle to remain competitive due to these persistent pressures.
At the forum, the Lagos Country Club encouraged the private sector to boost local manufacturing investment. Additionally, stronger participation would help alleviate inflation and support household spending. The Club also called on the government to address long-standing constraints, such as high energy tariffs and chronic power shortages, which repeatedly stall industrial growth and weaken business confidence.
Speakers emphasised the role of private sector resilience. Dele Oye, Chairman of the Alliance for Economic Research and Ethics, argued that Nigeria’s economic stability depends more on private investment than on government policy. Therefore, industrial groups continue injecting capital despite inflation, foreign exchange volatility, and high borrowing costs.
He cited Dangote Industries as a clear example of successful private investment. Consequently, the company’s extensive projects have strengthened the economy and demonstrated how private capital stabilises markets.
Nevertheless, Oye criticised government policies for being unsuitable for local realities. He urged businesses to confront bottlenecks, warning that remaining passive would worsen the situation. Moreover, electricity costs continue to rise as infrastructure weakens. He also criticised the Central Bank’s interest-rate tightening, explaining that 33 per cent lending rates harm productive sectors.
Dr Paul Alaje, Chief Economist at SPM Professionals, called for urgent supply-side reforms. Specifically, he said reliable electricity is the most decisive factor in rebuilding the industry. Otherwise, inflation will persist at high levels, and production costs will continue to rise.
Furthermore, he highlighted insecurity, food price distortions, and structural inefficiencies as key drivers of inflation. Although exchange rate stability has improved, housing costs, weak supply chains, and production challenges continue to constrain growth.
Lagos Commissioner for Wealth Creation and Employment, Akinyemi Ajigbotafe, explained that the state has launched adaptive programmes. For example, ICT training, internships, and enterprise support through the Employment Trust Fund help residents increase their earnings and enhance their purchasing power.
Seyi Adewunmi, President of the Lagos Country Club, highlighted the forum’s role in national dialogue. Nigerians face economic pressure daily, while families struggle with rising costs and businesses battle to survive. Therefore, members attend the forum to gain insights that improve resilience and competitiveness.
Ultimately, the Club concluded that Nigeria requires a more assertive and investment-driven private sector. Companies were encouraged to follow the Dangote model, building capacity, deepening local production, and challenging harmful policies. Because energy costs remain high, firms must advocate for reforms that genuinely support growth.
The event brought together economists, policymakers, and industry leaders to examine the drivers of inflation and propose long-term solutions. Consequently, Adewunmi reaffirmed the Club’s commitment to promoting accountability, stability, and practical economic guidance for Nigerians.