BY AISHA MUHAMMAD MAGAJI
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organised Private Sector of Nigeria (OPSN) have raised alarm that Nigeria’s persistent public sector deficit is one of the biggest obstacles to achieving the federal government’s goal of transforming the country into a $1 trillion economy by 2030.
In a recent statement, Dele Kelvin Oye Esq., the President of NACCIMA, urged the federal government to adopt more rigorous public financial management strategies. He emphasized the importance of prioritizing capital over recurrent spending, expanding the tax base without raising tax rates, improving the efficiency of public spending, and closing financial leakages at all levels of government.
Oye noted, “While structural reforms are essential, we must confront a hard truth: persistent public sector deficits and continual borrowing—much of it for financing recurrent expenditures—are crowding out private investment and fueling inflation. We urge the government to implement robust public financial management practices by focusing on capital expenditure, expanding the tax base, increasing efficiency, and addressing the underperforming assets.”
He also highlighted the importance of restoring macroeconomic stability and rebuilding investor confidence, adding, “These actions are not only critical to stabilizing the economy but also to reigniting investor and business confidence in the Nigerian market.”
Furthermore, Oye commended the government, particularly Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, for their transparency in acknowledging Nigeria’s pressing macroeconomic and social challenges during the recent IMF/World Bank Spring Meetings. He also praised the government’s commitment to job creation, youth empowerment, and collaboration with development partners, recognizing these efforts as timely and essential.
However, Oye cautioned that the World Bank’s Africa Pulse report pointed to an alarming rise in poverty, forecasting that Nigeria’s national poverty rate could reach 56% by 2027. He noted that rising inflation, escalating poverty levels, youth migration, and a widening fiscal deficit underscored the urgency for faster, more targeted policy actions.
On monetary policy, Oye expressed concerns over the Central Bank’s prevailing lending rates, which are hovering between 30-40%. He warned that these high rates could stifle entrepreneurship, industrial production, and agricultural growth, undermining job creation and innovation. NACCIMA has called for targeted intervention funding and special credit windows for MSMEs and strategic sectors at concessionary rates to unlock growth and foster food security.
Oye concluded by addressing global shifts in economic and geopolitical dynamics, particularly the decline in the dominance of the U.S. dollar, the reduced U.S. global share, and the rise of alternative digital settlement systems. He argued that Nigeria should strategically align its foreign policy to strengthen partnerships with emerging economic blocs such as China and the BRICS nations. This shift, he said, could make Nigeria a more attractive destination for foreign direct investment, drive industrial growth, create jobs, and reduce poverty.
“NACCIMA acknowledges the bold steps taken by the government under the current reforms, but the short-term socioeconomic pains, including increasing poverty, joblessness, and insecurity, demand urgent and inclusive interventions. Nigeria cannot rely on the patience of its citizens when livelihoods are being eroded by economic hardship,” Oye emphasized.
