According to allafrica.com, Nigeria’s manufacturing sector contributed ₦1.17 trillion in Value Added Tax (VAT) in 2025 — a 45.61 per cent increase from ₦803.53 billion in 2024. Its Company Income Tax (CIT) contribution also rose to ₦881.29 billion, up 32.83 per cent from ₦663.46 billion the prior year. These figures were presented by Engr. Leye Kupoluyi, president of the Lagos Chamber of Commerce and Industry (LCCI), at the second quarterly press conference on the state of Nigeria’s economy.
Tax Growth Spurs Calls for Fiscal Support
Kupoluyi emphasized that this robust tax performance underscores the sector’s expanding role in national revenue generation and industrial development. However, he stressed that rising contributions should be matched with targeted government action: “following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions.”
Banking Recapitalisation: Capital Raised, Credit Constraints Expected
The LCCI also highlighted the successful conclusion of Nigeria’s banking sector recapitalisation programme. The Central Bank of Nigeria confirmed that 33 banks met revised minimum capital requirements, collectively raising ₦4.65 trillion in new capital. Of this, 72.55 per cent was sourced domestically and 27.45 per cent internationally. New thresholds were set at ₦500 billion for international banks, ₦200 billion for national banks, and ₦50 billion for regional banks.
The LCCI commended the CBN for executing the programme without service disruption and for strengthening prudential oversight, asset quality, and governance frameworks. Yet Kupoluyi cautioned about near-term implications:
“In the immediate term, banks are likely to adopt a cautious approach to lending as they consolidate their capital positions and align with enhanced regulatory requirements. This may result in tighter credit conditions, continued preference for low-risk assets, and limited access to affordable financing for MSMEs.” — Engr. Leye Kupoluyi, President, Lagos Chamber of Commerce and Industry
Medium- to Long-Term Outlook: Financing Capacity to Expand
Kupoluyi noted that over the medium to long term, the strengthened capital base is expected to significantly expand banks’ capacity to finance large-scale projects and provide long-term credit to the real sector — including manufacturing. He underscored that success hinges on translating capital strength into increased and more accessible business lending, especially for high-impact sectors.
External Sector Stability Supports Business Confidence
The LCCI also commended improvements in Nigeria’s external sector: significant increases in foreign reserves and sustained exchange rate stability have enhanced investor confidence, reduced business uncertainty, and helped moderate inflationary pressures. The Chamber urged continuation of policies promoting foreign exchange market stability, liquidity improvement, and export diversification — all critical for macroeconomic stability and operational continuity.
Source: allafrica.com
Compiled from international media by the SCI.AI editorial team.
