The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organized Private Sector of Nigeria (OPSN) have raised concerns over Nigeria’s growing public sector deficit, warning that unchecked borrowing and excessive recurrent spending pose serious risks to the federal government’s ambition of building a $1 trillion economy by 2030.
In a statement released on Tuesday, NACCIMA President and OPSN Chairman, Dele Kelvin Oye, urged the federal government to adopt a more disciplined approach to public financial management. He emphasized the need to shift spending priorities toward capital projects, broaden the tax base instead of increasing tax rates, improve the efficiency of government expenditures, and reduce financial leakages.
“While structural reforms are essential, we must confront a hard truth: persistent public sector deficits and continual borrowing, much of it to finance recurrent expenditure, continue to crowd out private investment and exert inflationary pressures,” Oye stated.
He further advocated for the concessioning or sale of underperforming public assets to help raise revenues and reduce fiscal strain, noting that such measures are necessary for restoring economic stability and boosting investor confidence.
Oye acknowledged the efforts of the Minister of Finance, Wale Edun, and the Governor of the Central Bank of Nigeria, Olayemi Cardoso, for their transparency in discussing the country’s economic challenges during the recent IMF/World Bank Spring Meetings in Washington, D.C.
He praised the government’s focus on achieving single-digit inflation, expanding digital infrastructure, and creating jobs, especially for the youth. However, he also referenced the World Bank’s latest Africa Pulse report, which projects Nigeria’s poverty rate could climb to 56% by 2027, describing it as a stark warning of deepening socio-economic pressures.
“We commend the administration’s commitment to growth, but economic transformation requires hard decisions—especially regarding fiscal discipline and productivity-enhancing reforms,” Oye added.
As Nigeria aims to transition into a $1 trillion economy within the next five years, stakeholders in the private sector stress that sustained macroeconomic stability and investor confidence will be pivotal in achieving that target.
