To meet the N34.82 trillion revenue projection, the Lagos Chamber of Commerce & Industry (LCCI) underscored the urgency of improving Nigeria’s tax-to-GDP ratio, one of the lowest globally.
The chamber commended the robust plans of the federal government as presented through the 2025 Budget, aptly themed the ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity’, saying, the attention on key priorities, including security, infrastructure, education, health, and agriculture, focusing on achieving macroeconomic stability and inclusive growth.
Speaking, the director-general of LCCI, Dr. Chinyere Almona said, beyond the figures and assumptions, budget implementation is the key performance driver.
According to her, 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.
“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. Avoidable delays in budget preparation and approvals may stress the 2025 budget implementation expected to start in January,” she said.
She noted that “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.
“Fiscal discipline must complement these efforts to effectively manage the N15.81 trillion debt servicing allocation. Prioritizing high-impact, self-sustaining projects and exploring alternative funding mechanisms, such as public-private partnerships, are crucial to keeping debts within sustainable limits.”
Almona added that “structural reforms are indispensable to reducing inflation to 15 per cent and stabilising the exchange rate at N1,400 per dollar.
To her, “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.
“Achieving the ambitious oil production target of 2.06 million barrels daily requires decisive action to resolve pipeline vandalism, theft, and underinvestment. Across the three streams of operations in the oil and gas industry, a sound regulatory environment can boost activities and investments in the short term.”
LCCI DG pointed out that “the allocation of N4.91 trillion for defence is commendable compared to previous allocations in recent years. However, this 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.”
She added that, “the N4.06 trillion earmarked for infrastructure and significant allocations for education and health call for swift and transparent project execution. While the budget outlines bold goals, such as halving inflation and stabilising foreign exchange, these aspirations hinge on robust policy implementation, sustained execution, and coherence across government strategies.”