
2025: LCCI implores FG on avoidable delays in budget implementation
…Proffers actionable solutions to drive economic growth, devt
By Seun Ibiyemi
The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to ensure there are no avoidable delays in the implementation of the 2025 budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”
The LCCI also proposed a range of actionable solutions aimed at enhancing the nation’s economic landscape, benefiting businesses, and strengthening economic growth and development.
President of the LCCI, Gabriel Idahosa, offered this advice during the chamber’s first-quarter news conference held on Thursday in Lagos.
He emphasised that the 2025 Budget is a comprehensive fiscal plan that aligns with key national priorities, including security, infrastructure, education, health, and agriculture. He further highlighted that the budget also targets macroeconomic stability and inclusive growth. However, Idahosa stressed that beyond the budget’s figures and assumptions, its successful implementation is the key driver of performance.
He noted that the extension of the 2024 budget implementation cycle to June 2025 should be closely monitored to avoid similar delays in future years, as it signals weaknesses in budget execution. Idahosa called on the National Assembly to expedite the appropriation debates to prevent avoidable delays in budget preparation and approval, which are critical to ensuring the smooth implementation of the 2025 budget, expected to commence in January.
To meet the ambitious N49.7 trillion target set for the 2025 Budget, Idahosa urged the government to improve Nigeria’s tax-to-GDP ratio. He stressed the importance of accelerating tax reforms, simplifying processes, and including the informal sector in the tax net.
“Leveraging technology to expand the tax base, reduce leakages, and foster transparency will be essential. Fiscal discipline must complement these efforts to manage the N15.81 trillion allocated for debt servicing effectively,” he stated.
Idahosa also suggested that prioritising high-impact, self-sustaining projects and exploring alternative funding mechanisms, such as public-private partnerships, would be crucial in keeping national debts within sustainable limits.
While acknowledging the bold aspirations outlined in the 2025 Budget, such as reducing inflation and stabilising the exchange rate, Idahosa emphasised that their successful implementation would depend on robust policy execution, sustained efforts, and alignment across all levels of government.
He further noted that to address the projected N15.81 trillion debt servicing burden, the government must focus on high-impact, self-sustaining projects. Idahosa also highlighted that reducing inflation to 15 percent and stabilising the exchange rate at N1,400/$1 would require addressing several structural challenges, including poor crop production driven by security issues, rising transport costs, and the emerging effects of climate change.
Idahosa pointed out that the rising cost of beverages, produced primarily by local and multinational companies, was a consequence of the challenging operating environment. Similarly, livestock and poultry have been significant drivers of food price increases over the past year.
He underscored the importance of resolving supply chain bottlenecks in food and energy, accelerating local petroleum production projects, and ensuring alignment between fiscal and monetary policies to alleviate inflationary pressures.
Regarding food security, Idahosa noted that Nigeria is facing a severe crisis, with projections indicating that 33.1 million people will experience high levels of food insecurity by mid-2025. This alarming situation, driven by economic hardships and high food inflation, which marginally eased to 39.84 per cent in December from 39.93 per cent in November, requires urgent action. He called for the extension of import waivers on critical goods, including agricultural inputs, and additional non-cash fiscal interventions to boost food production and supply.
Speaking on the economy, Idahosa recognised the progress shown by the recent GDP growth figures but expressed concerns about the gap between the current economic realities and the 2025 budgetary goals. He pointed out that the third-quarter performance of 2024 revealed resilience but also highlighted structural challenges, particularly in non-oil productivity, industrial growth, and export capacity.
He noted that oil production, currently at 1.47 million barrels per day (mbpd), remains below the 2025 budget assumption of two million barrels per day. Sectoral growth patterns also showed disparities that require immediate attention.
“The 2025 GDP growth projections reflect optimism, but we must remain focused on fiscal discipline, growth drivers, and creating an enabling environment,” Idahosa stated. He also mentioned that the assumed GDP growth rate of 6.4 per cent is notably ambitious, given the average growth rate of 2.5–3.5 per cent over recent years.
Idahosa called for strategic policy responses to stimulate economic growth, particularly by addressing the pivotal role of food security in national stability. The LCCI urged the government to adopt a multi-pronged approach to tackling insecurity, which is essential for agricultural recovery.
He suggested that, through the 2025 budget, the government should introduce strategic incentives for sub-national governments, especially at the grassroots level. This would channel investments into agricultural mechanisation, smart farming technologies, and climate-resilient crop production.
To stimulate private sector investment in agriculture, Idahosa recommended that the Central Bank of Nigeria (CBN) introduce targeted incentives for financial institutions to expand credit facilities to agriculture and agro-processing industries. This could include risk-sharing mechanisms, favourable credit guarantee schemes, and partnerships with agritech firms to unlock untapped potential.
With the creation of the Ministry of Livestock Development, Idahosa saw a unique opportunity for the government to implement innovative, data-driven policies that modernise livestock and aquaculture value chains, integrate advanced breeding technologies, and strengthen rural market access. He stressed that effective implementation of these recommendations would not only improve protein sufficiency but also position Nigeria as a leader in sustainable livestock and aquaculture in Africa.
In response to global economic shifts, Idahosa urged the government to drive transformative reforms in the manufacturing sector by addressing critical cost drivers such as high inflation and interest rates. Strategic measures, such as instituting single-digit tax regimes for manufacturers, stabilising the naira through proactive foreign exchange policies, and leveraging public-private partnerships, would help reduce production costs.
Idahosa also called for expanded access to credit for Micro, Small, and Medium Enterprises (MSMEs) at concessionary rates below the prevailing CBN Monetary Policy Rate (MPR). He suggested introducing technology-driven lending platforms and tailored financial literacy programs to empower MSMEs to scale their operations effectively.
“These steps will mitigate rising production costs, safeguard employment, and improve the competitiveness of Nigerian products in regional and global markets,” he said.
To enhance productivity in the real sector, Idahosa recommended that the government allocate significant resources from the 2025 budget towards modernising infrastructure, improving refinery operations, and eliminating fuel supply bottlenecks. By fostering energy efficiency and reducing logistics costs, these measures would drive industrial growth, attract foreign investment, and improve the overall business environment in Nigeria.