Chamber calls for enhanced budget implementation
The Lagos Chamber of Commerce & Industry (LCCI) has stated that the 2026 Budget presents a credible opportunity to move Nigeria from recovery to expansion.

In an address on the state of the economy, President, Lagos Chamber of Commerce & Industry (LCCI), Leye Kupoluyi said the success of the budget would depend less on size of allocations but more on execution discipline, capital efficiency, and sustained support for productive sectors.

He said LCCI remains committed to working with the government to ensure the budget delivers stronger growth, more jobs, and a more competitive Nigerian economy.

He expressed concerns about what he called Nigeria’s historically weak budget implementation capacity that is likely to be further strained by the operation of multiple budget cycles within a single year.

According to him, efficient budget implementation has important implications for fiscal coordination, transparency, and effective project execution.

He identified agriculture, agro-processing, manufacturing, infrastructure, energy, and human capital development as key growth drivers in 2026 but added that unlocking these sectors will require decisive execution, scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers, accelerating infrastructure delivery through PPPs, sustaining oil and gas sector reforms, and aligning education and skills development with private-sector needs.

Also, he cautioned the government on the continued rise in the nation’s debt to N152.40 trillion, reflecting a year-on-year increase of N18.10 trillion or 13.5 percent, compared to N134.30 trillion recorded in the same period in 2024.

He said: “This also represents a quarter-on-quarter rise of N3.01 trillion or 2.0 percent, up from N149.39 trillion in March 2025. This consistent upward trajectory in Nigeria’s debt stock reflects both fresh borrowings and the impact of a depreciating exchange rate on external debt obligations. External debt rose to N71.85 trillion ($46.98 billion), a year-on-year increase of N8.77 trillion or 13.9 percent, while domestic debt reached N80.55 trillion ($52.67 billion), marking a 13.1 percent increase from the N71.22 trillion recorded in Q2 2024. Available reports suggest that once the National Assembly approves the outstanding loan requests currently under review, the nation’s total debt stock could surpass $190 billion”.

Furthermore, he said the World Bank has attributed the rise in public debt stock to the weak fiscal position of the Federal Government, with the deficit widening to 3.8percent as independent revenues fell and spending pressures from wages and interest costs mounted. He however, noted that Nigeria’s public debt remains sustainable, but subject to budgetary vulnerabilities.

In view of the widening debt profile he urged the government to intensify efforts to expand non-oil revenue, improve tax efficiency and compliance, and curb recurrent expenditure.

Strengthening fiscal discipline, closing leakages, and enhancing public financial management will be crucial to sustainably funding national development priorities without excessive dependence on borrowing. A more strategic balance between revenue generation and prudent debt accumulation is essential to safeguarding economic stability and long-term growth, he stated.

On the proposed sale of National Assets, he stressed that though the Federal Government projected N189 billion in revenue from asset sales and privatisation as part of a N25.27 trillion financing plan to bridge the fiscal gap, specific assets were not listed. He said from their sources the proposed transactions span oil and gas, power, transport, industry, real estate, and other strategic sectors, aimed at monetising public holdings and reducing direct state involvement in commercial activities.

“LCCI acknowledges the approach as a means of easing fiscal pressure and improving efficiency, provided the process is transparent, competitively executed, and supported by strong governance frameworks. We urge the publication of a clear asset list, timelines, and use of proceeds, and recommend that the funds be reinvested in infrastructure, human capital, and productivity-enhancing projects”.

Above all, the Chamber stresses that privatisation should form part of a broader structural reform agenda, not merely a short-term financing measure, to ensure sustainable growth and long-term national value, he added.

On delayed payment to contractors, he noted the provision of Federal N1.7 trillion in the 2026 budget reflects a formal acknowledgment of persistent payment delays to contractors. This provision he said aims to settle verified 2024 capital project liabilities and ease the financial distress faced by indigenous contractors.

However, he maintained that recurring backlogs highlight structural issues such as weak revenue performance and delayed capital releases. He called for sustained fiscal discipline and timely cash backing to restore contractor confidence and enable infrastructure delivery.

While commending the government on local production of LPG, he said local refineries and gas processing plants supplied 87 percent of Nigeria’s cooking gas (LPG) demand in 2025 representing one of the most consequential structural shifts in Nigeria’s downstream energy landscape in decades.

According to him this is not merely an incremental improvement; it is a decisive break from chronic import dependence and a clear signal that domestic energy industrialization is finally gaining scale, credibility, and momentum.

The sharp decline in LPG imports delivers meaningful foreign exchange relief, easing pressure on the naira and improving the balance of payments. Local production allows scarce FX to be redirected toward manufacturing, infrastructure, and economic growth he stated.

Producing 87 percent of cooking gas locally is a practical demonstration that import substitution works when driven by infrastructure and market discipline, offering a replicable model for Nigeria’s broader economic transformation, he noted.

On the new tax regime, Kupoloyi said after due consideration of the implications of the new tax laws for businesses, we call on companies to continue their operations and remain formal with the tax authorities as implementation commences.

“We see the process as an essential reform to update the fiscal framework, enhance competitiveness, and increase revenue. However, successful implementation requires clarity, transparency, collaboration, and business-focused execution to achieve economic benefits without stifling growth”.