- The Lagos Chamber of Commerce and Industry says the government should improve the tax-to-GDP ratio to meet the N34.82 trillion revenue projection
- LCCI says structural reforms are needed to achieve a 15 per cent inflation rate target and exchange rate of N1,400/$ as contained in the budget
- The chamber commended the significant allocation to defence and security, health, and education
The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to ensure the improvement of the tax-to-Gross Domestic Product (GDP) ratio for it to be able to meet the N34.82 trillion revenue projection in the 2025 budget.
In a statement signed by its Director-General, Dr Chinyere Almona, LCCI also urged the Federal Government to accelerate and simplify its tax reform processes and incorporate the informal sector to meet the revenue target.
Almona remarked, “Nigeria has one of the lowest tax-to-GDP ratios globally.”
It noted that technology should be leveraged to “expand the tax net, minimise leakages, and foster transparency.”
The chamber also addressed other aspects of the N49.7 trillion 2025 budget. Regarding the N15.81 trillion allocated to debt servicing in the budget, the chamber called for fiscal discipline to complement other efforts to manage the debt servicing allocation effectively.
It advised the government to prioritise high-impact, self-sustaining projects and explore alternative funding mechanisms, such as public-private partnerships, as these remain crucial to keeping debts within sustainable limits.
Almona said, “Exploring alternative funding mechanisms such as public-private partnerships is critical to maintaining sustainable debt levels.”
LCCI’s comment on inflation, oil and gas sector
The LCCI said structural reforms are indispensable in meeting the government’s projection of a reduction in inflation from the current 34.60 per cent to 15 per cent and stabilising the foreign exchange rate at N1,400/$ as contained in the 2025 budget.
It noted, “Restoring confidence in the naira and easing inflationary pressures must be a top priority.”
“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 chamber highlighted the country’s oil production capacity and stressed the need for decisive action against pipeline vandalism and theft to achieve the budget’s 2.06 million barrels per day target.
It said, “A sound regulatory environment is key to boosting investments and activities in the oil and gas sector.”
‘Allocations to defence, health and education commendable’
The chamber commended the allocation of N4.91 trillion for defence when compared to previous allocations in recent years.
It, however, stressed the need to complement the allocation with enhanced intelligence, surveillance technology, and simultaneous investment in poverty reduction and youth empowerment, which it described as the drivers of insecurity and criminality in the country.
It noted, “Youth empowerment must be prioritised to tackle the root causes of insecurity and criminality.”
The LCCI also lauded the N4.06 trillion earmarked for infrastructure and the significant allocations to the education and health sectors.
It emphasised that transparent project execution is crucial, stating, “The bold goals of halving inflation and stabilising foreign exchange depend entirely on robust policy implementation and coherence across government strategies.”
2025 budget has scaled second reading at National Assembly
The 2025 budget, tagged, ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity,’ which was presented by President Bola Tinubu on Wednesday, December 18, to a joint session of the National Assembly, has scaled second reading in both chambers.
The legislature assured that the budget will receive speedy attention to ensure its early passage.
“Not feasible”: LCCI faults FG’s N1,400 exchange rate, 15.8% inflation assumptions in 2025 budget proposal
Meanwhile, TheRadar reported that the Lagos Chamber of Commerce and Industry (LCCI) said the assumptions of N1,400 exchange rate and an inflation rate of 15.8 per cent as proposed by the Federal Government in the 2025 budget proposal are not feasible.
The chamber, in a statement issued by its Director-General, Dr Chinyere Almona, on Monday, November 18, said such parameters as contained in the proposed budget are unattainable given the prevailing macroeconomic condition of the country.
