The Lagos Chamber of Commerce and Industry has called on the Federal Government to urgently review the assumptions behind the 2025 national budget as the global oil price decline weakens economic prospects.
Director-General of the LCCI, Dr Chinyere Almona, in a statement released on Thursday, warned that the sharp drop in global crude oil prices below the federal benchmark of $75 per barrel could erode Nigeria’s fiscal stability and derail budget implementation.
“The government should get stricter with cutting the cost of governance within adjusted budget assumptions that reflect current realities. We may need to review and reprioritise the 2025 budget assumptions to reflect a lower oil revenue expectation”, Almona stated.
The LCCI raised the alarm over projections from the April 2025 World Economic Outlook and Global Financial Stability Report released by the International Monetary Fund and World Bank.
The reports cut the country’s growth forecast to 3 per cent in 2025 and 2.7 per cent in 2026, citing global trade tensions, weakened demand, and financial market volatility.
The LCCI DG said, “The IMF’s concerns regarding Nigeria’s vulnerability to external shocks are not unfounded. The country remains heavily dependent on crude oil for foreign exchange, making it susceptible to commodity price swings.”
She noted that while policy reforms such as exchange rate unification and halting the Central Bank of Nigeria’s deficit financing were commendable, they remained insufficient.
She urged the Federal Government to sustain reforms in the oil and gas sector to increase crude output, boost domestic refining, and cut fuel imports.
On inflation, Almona cited IMF projections warning that Nigeria could face an average inflation rate of 26.5 per cent in 2025, rising to 37 per cent by 2026.
She stressed the need for investments in real sector infrastructure to tackle food inflation, which “has remained the major driver of the headline inflation rate for almost two years.”
To shore up revenue, LCCI advised the immediate implementation of comprehensive tax reforms backed by improved tax administration.
The chamber also pushed for the reduction of public debt and improved fiscal discipline to create room for security spending and trade shock buffers.
“Public debt levels are nearing crisis thresholds. Nigeria’s current debt level is close to attaining global projections of 117 per cent of Gross Domestic Product by 2027 if nothing drastic is done,” Almona remarked.
She further recommended targeted support for non-oil sectors such as solid minerals, the creative industry, and the digital economy, along with expanded access to microfinance, regulatory reforms for Micro, Small and Medium Enterprises, and investments in agriculture.
“To drive inclusive economic growth, we need to boost access to microfinance, improve and stabilise power supply, and drive regulatory reforms that support MSMEs and local manufacturing for job creation, revenue generation, and economic growth,” Almona added.
