LCCI urges FG to drive value-added exports to boost non-oil

The Lagos Chamber of Commerce and Industry (LCCI) has called for increased investments in agro-processing to boost non-oil exports and improve Nigeria’s foreign exchange earnings.

In its first economic briefing of 2026, Leye Kupoluyi, LCCI president, said the the country must move toward value-added, sustainable products and enhance export competitiveness to improve its foreign exchange earnings and reduce vulnerability to oil price volatility.

“In view of these trends, we strongly urge the government to intensify efforts to expand non-oil revenue, improve tax efficiency and compliance, and curb recurrent expenditure,” Kupoluyi said in a statement on Thursday.

Kupoluyi identified flagship commodities like cocoa, cashew, palm oil, and sesame as key areas where Nigeria holds a competitive advantage but continues to underperform due to weak processing capacity and limited export competitiveness.

Read also: Nigeria needs regulatory harmonisation, infrastructure revamp to boost real sector – LCCI President

Data from the National Bureau of Statistics (NBS) show that while the non-oil sector accounted for over 96 percent of Nigeria’s Gross Domestic Product in the third quarter of 2025, agriculture recorded only a modest recovery, underscoring the gap between production and value addition.

Although food inflation eased to 10.84 percent in December 2025 due to improved supply conditions, structural issues around processing, storage, and export logistics persist.

The LCCI noted that strengthening agro-processing would not only expand non-oil export earnings but also support exchange rate stability by reducing pressure on foreign reserves.

According to the LCCI, the global economy grew by an estimated 2.7 percent in 2025, with growth expected to remain modest in 2026.

However, trade fragmentation, tighter financial conditions, and policy uncertainty are expected to constrain export earnings for developing economies, including Nigeria, making reliance on crude oil receipts increasingly risky.

The Chamber said the country must accelerate a shift from exporting raw agricultural commodities to processing them into higher-value products to boost foreign exchange earnings and improve resilience.

It urged for more “leveraging on the African Continental Free Trade Area (AfCFTA) to scale non-oil exports”.

In 2025, Nigeria’s external reserves rose to $45.5 billion, supported by improved foreign exchange market transparency. Kupoluyi, however, warned that sustaining stability would require diversifying export revenues beyond oil.

He noted that high borrowing costs and tight liquidity conditions also continue to limit investment across agro-value chains.

With the Monetary Policy Rate held at 27 percent and cash reserve requirements remaining elevated, access to credit for agribusinesses and export-oriented Small and Medium Enterprises remains constrained.

Kupoluyi urged policymakers to support agribusinesses through improved access to finance, stronger standards compliance, and better trade intelligence.

It also called for reforms in port efficiency, customs processes, and infrastructure governance to lower logistics costs and enhance competitiveness under the African Continental Free Trade Area.

As global demand growth slows, the LCCI said Africa’s most populous nation’s ability to convert agricultural output into value-added exports will determine whether the sector becomes a stabilising force for the economy or remains exposed to external shocks.

Feyishola Jaiyesimi covers agriculture and environment trends at BusinessDay, Nigeria’s leading daily newspaper focused on economy and finance. Her stories draw on investigative journalism, and she has been selected for professional training by the US Embassy, Lagos, and Dataphyte. Feyishola holds a bachelor’s degree in Zoology and Environmental Biology from Ekiti State University.

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