LCCI commends FG’s plans in 2025 budget, cautions against delayed implementation

The Lagos Chamber of Commerce and Industry (LCCI) has commended the federal government’s plans in the 2025 budget, calling attention to key priority areas such as security, infrastructure, education, health, and agriculture.

In a statement on Wednesday, Chinyere Almona, LCCI’s director-general (DG), expressed concerns that unnecessary delays in budget preparation and approval could strain the implementation of the 2025 budget, which is set to begin in January.

Almona said the effectiveness of the budget will largely depend on its timely implementation.

“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,” Almona 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.

“Avoidable delays in budget preparation and approvals may stress the 2025 budget implementation expected to start in January.”

‘ADDRESS NIGERIA’S LOW TAX-TO-GDP RATIO TO MEET REVENUE TARGET’

To meet the ambitious revenue target of N34.82 trillion, the LCCI DG stressed the need to address Nigeria’s low tax-to-GDP ratio — “one of the lowest in the world”.

She pointed out that expediting tax reforms, streamlining procedures, and integrating the informal sector are crucial steps.

Almona also stressed the importance of using technology to broaden the tax net, reduce leakages, and enhance transparency.

“Fiscal discipline must complement these efforts to effectively manage the ₦15.81 trillion debt servicing allocation,” the LCCI boss said.

“Prioritising high-impact, self-sustaining projects and exploring alternative funding mechanisms, such as public-private partnerships, are crucial to keeping debts within sustainable limits.

“Structural reforms are indispensable to reducing inflation to 15% and stabilizing the exchange rate at ₦1,400/$1.

“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.

“The allocation of ₦4.91 trillion for defence is commendable compared to previous allocations in recent years.”

Almona, however, said the funding should 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”.

Almona also said the N4.06 trillion set aside for infrastructure, along with substantial allocations for education and health, requires prompt and transparent execution of projects.

She noted that while the budget sets ambitious objectives, such as reducing inflation by half and stabilising the exchange rate, achieving these goals depends on effective policy implementation, continuous execution, and alignment across government strategies.

On December 18, President Bola Tinubu presented the sum of N49.7 trillion as the proposed budget for 2025 to the national assembly.

Titled, “Budget of Restoration: Securing Peace and Rebuilding Prosperity”, Tinubu said the proposed budget reinforces his administration’s roadmap to secure peace, prosperity, and hope for a greater future for Nigeria.