Taiwo Hassan 
As the effects of tariff measures put in place by United States President, Donald Trump, keep manifesting globally, the Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to intensify economic reforms to enhance the country’s capacity to attract more capital into critical sectors.
President/Chairman of Council, LCCI, Mr Gabriel Idahosa, who made this known in an interview with New Telegraph in Lagos, said that the tariff impacts had started to show through shrinking trade, constrained consumer spending, labour market conditions, and price levels.
He stated that a lower US policy rate typically weakened the dollar, which could reduce the competitiveness of emerging economies such as Nigeria and slow export performance. Idahosa also said that a weaker dollar may lower short to medium-term debt servicing costs on dollar-denominated loans and improve government borrowing conditions through lower bond yields.
However, the LCCI president explained that the Federal Government should pursue deeper structural reforms to raise living standards and harness the productivity gains offered by new technologies such as artificial intelligence (AI). The LCCI boss stressed: “The Chamber urges the federal government to deliberately implement a strategic trade diversification agenda that prioritises intra-African trade.
“Nigeria should leverage its comparative advantages to expand its productive base and strengthen economic resilience.” In addition, he pointed out that “sustained fiscal prudence is essential to ensure long-term debt sustainability and preserve fiscal buffers.
The focus should remain on transparency, accountability, and efficient allocation of resources. “Credible medium-term fiscal adjustment plans, prioritising spending reallocation and enhanced revenue mobilisation, are crucial to stabilising debt burdens.”
On global economic development, Idahosa said: “In the third quarter of 2025, the global economy showed greater resilience than anticipated earlier in the year, particularly across many emerging market economies. Industrial production and trade were supported by front-loading activities in anticipation of higher tariffs.
“In the United States, strong AI-driven investments bolstered performance, while in China, fiscal support helped offset the drag from trade headwinds and persistent weaknesses in the property market.”
On the Outlook for global economic, the LCCI helmsman explained that geopolitical risks such as persistent conflicts in the Middle East and continued trade policy uncertainty posed significant threats to the global economic outlook. US Government Shutdown: Since October 1, 2025, the US government has recorded an unprecedented shutdown that has crippled several functions of government and impacting on jobs and international agreements.
The shutdown is expected to dampen domestic demand and create fiscal drag. Potential delays in government spending, procurement, and stimulus disbursement may weaken public investment and consumption. A prolonged shutdown could further heighten policy uncertainty and erode business and consumer confidence.
“Labour Market Softening: Rising unemployment rates and a decline in job openings relative to the unemployed are evident in several economies, including the United States.
“Inflation Trends: Disinflation has plateaued in many economies, with food-driven increases in goods inflation and persistent services inflation remaining a concern.
“Financial Markets: Financial conditions have eased in both advanced and emerging markets, reflected in buoyant asset prices, improved credit flows, and low corporate bond spreads. Nonetheless, elevated asset valuations and mounting fiscal risks remain areas of concern.”
He noted that “with the US Federal Reserve and other major central banks cutting policy rates, increased capital inflows into emerging and developing economies are anticipated. “However, if monetary easing persists extensively, advanced economies could face renewed inflationary pressures, while emerging markets may import inflation through higher global prices.”
