The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organized Private Sector of Nigeria (OPSN) have cautioned that Nigeria’s substantial public sector deficit poses the greatest obstacle to achieving the Federal Government’s ambition of a $1 trillion economy by 2030.
NACCIMA President Dele Kelvin Oye urged the government to adopt stringent public financial management, emphasizing the prioritization of capital over recurrent spending, expanding the tax base without increasing rates, enhancing expenditure efficiency, and curbing leakages.
He warned that persistent deficits and borrowing for recurrent expenses crowd out private investment and fuel inflation, urging asset sales or concessions to boost macroeconomic stability and investor confidence.
Oye praised the government, represented by Finance Minister Wale Edun and Central Bank Governor Olayemi Cardoso, for acknowledging Nigeria’s macroeconomic and social challenges at the recent IMF/World Bank Spring Meetings.
He also commended their commitment to job creation, youth empowerment, single-digit inflation, digital infrastructure, and the $1 trillion economy goal. However, he highlighted the World Bank’s Africa Pulse report, which projects Nigeria’s poverty rate rising to 56% by 2027, underscoring the need for urgent, pragmatic policies to address poverty, inflation, youth migration, and fiscal deficits.
Oye criticized the Central Bank’s tight monetary policy, with lending rates of 30-40%, for stifling entrepreneurship, industry, and agriculture, calling for targeted funding and concessional credit for MSMEs and key sectors.
To tackle youth migration (“Japa”) and insecurity, he advocated for large-scale public works, digital skills training, security investments, and youth-focused entrepreneurship programs, particularly in agriculture and manufacturing.
He also urged addressing inflation’s root causes—food supply disruptions, energy shortages, regulatory inconsistencies, forex volatility, and excessive fiscal spending—through strategic food imports, farmer subsidies, local refining, and modular refinery projects.
Oye emphasized the need for structured dialogue with the private sector to ensure evidence-based, context-sensitive policies. He also recommended that Nigeria adapt to global economic shifts, such as the declining dominance of the U.S. dollar, by forging trade ties with emerging blocs like China and BRICS to attract foreign investment, diversify the economy, and reduce poverty.
While acknowledging the government’s reform efforts, Oye stressed that rising poverty, unemployment, and insecurity require urgent, inclusive interventions to prevent further erosion of livelihoods and public trust.
WHAT YOU SHOULD KNOW
NACCIMA and OPSN’s recommendations provide a comprehensive blueprint for Nigeria’s economic transformation. The government must act decisively, balancing short-term relief with long-term reforms, to restore confidence, reduce poverty, and achieve its 2030 vision.
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