The Lagos Chamber of Commerce and Industry (LCCI) has commended the Federal Government’s 2025 Budget of Restoration, emphasizing the urgency of improving Nigeria’s tax-to-GDP ratio to achieve the ambitious revenue target of N34.82trn.
The budget, themed “Securing Peace, Rebuilding Prosperity,” focuses on macroeconomic stability and inclusive growth by prioritizing security, infrastructure, education, health, and agriculture.
In a statement released to THE WHISTLER, Dr. Chinyere Almona, Director-General of LCCI, highlighted that Nigeria’s tax-to-GDP ratio remains among the lowest globally.
She underscored the need for accelerated tax reforms, simplified processes, and the inclusion of the informal sector to expand the tax base.
“Leveraging technology to minimize leakages, enhance transparency, and foster fiscal discipline is critical to meeting the revenue projections,” she said.
The LCCI also stressed the importance of fiscal prudence in managing the N15.81trn allocated for debt servicing.
Almona advocated prioritizing high-impact, self-sustaining projects and exploring alternative funding mechanisms, such as public-private partnerships (PPPs), to ensure debt sustainability.
On budget implementation, the Chamber raised concerns about the extension of the 2024 budget cycle to June 2025, describing it as a potential indicator of weak execution. It called on the National Assembly to expedite deliberations on the 2025 budget while ensuring thorough scrutiny to avoid delays.
“Maintaining the January-December budget cycle is crucial to ensure timely implementation and prevent unnecessary stress on public finances,” the statement added.
The LCCI further emphasized the need for structural reforms to reduce inflation to 15 per cent and stabilize the exchange rate at N1,500/$1. It urged the government to address food and energy supply chain bottlenecks, expedite local petroleum production, and align monetary and fiscal policies to restore confidence in the naira and ease inflationary pressures.
Achieving the oil production target of 2.06 million barrels per day will require decisive action against pipeline vandalism, theft, and underinvestment.
On security, the LCCI commended the allocation of N4.91trn for defense but stressed the importance of complementing it with enhanced intelligence, surveillance technology, and poverty reduction initiatives. It noted that youth empowerment programs would help address underlying drivers of insecurity and criminality.
The budget’s N4.06trn allocation for infrastructure and significant funding for education and health were also lauded. However, the Chamber called for transparent and swift execution of these projects to achieve the bold goals outlined, including halving inflation and stabilizing foreign exchange.
“The 2025 Budget outlines commendable objectives,” Almona concluded, “but its success hinges on robust policy implementation, sustained execution, and coherent strategies across all tiers of government.”
