LCCI Pushes Value-Added Exports to Strengthen Non-Oil Revenue
The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to intensify investments in agro-processing as a pathway to boosting non-oil exports and strengthening Nigeria’s foreign exchange earnings.
Speaking at the Chamber’s first economic briefing of the year, LCCI President Leye Kupoluyi stressed that Nigeria must move beyond exporting raw commodities to producing value-added and sustainable goods to enhance competitiveness and reduce exposure to oil price volatility.
He called on the government to expand non-oil revenue, improve tax efficiency and compliance, and rein in recurrent expenditure, describing these measures as critical to achieving long-term fiscal stability.
Kupoluyi identified cocoa, cashew, palm oil and sesame as commodities where Nigeria holds strong comparative advantages but continues to underperform due to weak processing capacity and limited competitiveness in global markets.
Data from the National Bureau of Statistics show that the non-oil sector contributed more than 96 per cent of Nigeria’s Gross Domestic Product in the third quarter of 2025, yet agriculture recorded only modest growth, underscoring the persistent gap between production and value addition.
While food inflation eased to 10.84 per cent in December 2025 on improved supply conditions, the LCCI noted that structural challenges around processing, storage and export logistics continue to limit the sector’s full potential.
According to the Chamber, strengthening agro-processing would not only raise non-oil export earnings but also support exchange rate stability by easing pressure on foreign reserves.
Kupoluyi noted that although Nigeria’s external reserves rose to 45.5 billion dollars in 2025 on the back of improved foreign exchange market transparency, sustaining stability would depend on diversifying export revenues beyond crude oil.
He warned that high borrowing costs and tight liquidity conditions remain major constraints to investment across agro value chains, with the Monetary Policy Rate at 2 per cent and elevated cash reserve requirements limiting access to credit for agribusinesses and export-focused small and medium enterprises.
The LCCI also urged the government to leverage opportunities under the African Continental Free Trade Area to scale non-oil exports, while calling for reforms in port efficiency, customs processes and infrastructure governance to reduce logistics costs.
As global growth remains subdued and trade conditions tighten, the Chamber said Nigeria’s ability to convert agricultural output into value-added exports will determine whether the sector becomes a stabilising force for the economy or remains vulnerable to external shocks.
