The Lagos Chamber of Commerce and Industry (LCCI) has commended the federal government’s 2025 budget plan for paying attention to key priority areas to drive macroeconomic stability and inclusive growth.
In a communique made available to BusinessDay, Chinyere Almona, director general of the LCCI, commended the swift presentation of the 2025 national budget, themed, ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity’.
She applauded the attention paid to key priorities, including security, infrastructure, education, health, and agriculture, which focused on achieving macroeconomic stability and inclusive growth.
However, Almona expressed concern about Nigeria’s tax-GDP ratio, which is one of the lowest globally.
“To meet the ambitious N34.82 trillion revenue projection, the LCCI underscores the urgency of improving Nigeria’s tax-to-GDP ratio, one of the lowest globally,” she stated.
“Accelerating tax reforms, simplifying processes, and incorporating the informal sector are essential. Leveraging technology to expand the tax net, minimise leakages, and foster transparency will be critical,” Almona added.
She also called for the scrutinisation of the 2024 budget that was extended to June 2025 as announced Tuesday by Godswill Akpabio, president of the Senate of Nigeria.
“Beyond the figures and assumptions, budget implementation is the key performance driver. The 2024 budget implementation cycle extension to June 2025 should be closely watched to avoid such in the future as it can signal weak budget execution,” she said.
“While we call on the National Assembly to expedite action on the appropriation debates, we are concerned that much-needed scrutiny and consultations on the budget may not be possible if the January-December budget cycle is to be maintained,” she added.
She maintained that avoidable delays in budget preparation and approvals may stress the 2025 budget implementation expected to start in January.
According to Almona, leveraging technology to expand the tax net, minimise leakages, and foster transparency will be critical.
Also, fiscal discipline must complement these efforts to effectively manage the N15.81 trillion debt servicing allocation.
She noted that prioritising high-impact, self-sustaining projects and exploring alternative funding mechanisms, such as public-private partnerships, are crucial to keeping debts within sustainable limits.
Almona pointed out that addressing food and energy supply chain bottlenecks, fast-tracking local petroleum production projects, and fostering alignment between monetary and fiscal policies will restore confidence in the naira and ease inflationary pressures.
“The allocation of N4.91 trillion for defence is commendable compared to previous allocations in recent years,” she remarked.
She however urged that funding must be complemented with enhanced intelligence, surveillance technology, and simultaneous investment in poverty reduction and youth empowerment, both of which are drivers of insecurity and criminality in the country.
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