The Lagos Chamber of Commerce and Industry (LCCI) has issued a statement in response to Nigeria’s proposed 2024 budget of N27.5 trillion ($33.4 billion), emphasizing its status as the country’s largest budget in history, reflecting a 21.4% increase from the previous year’s N22.65 trillion. The budget places a strong focus on defense, internal security, and job creation.
In a statement signed by the Director – General LLCI, Dr. Chinyere Almona, FCA, the Chamber acknowledged the proposed expenditure policy which aim to address macro-economic stability, optimize the investment environment, foster human capital development, reduce poverty, and enhance social security.
“While the LCCI acknowledges the conservative nature of assumptions, concerns are raised about daily oil production due to persistent underinvestment, vandalism, oil theft, and rising production costs in the oil sector.
“The LCCI expresses concern about the low government expenditure to GDP ratio (12.2%) relative to Nigeria’s GDP size. It highlights the need to address this issue in comparison to African peers like South Africa, Egypt, Kenya, and Ghana.”
The LCCI urged the Federal Government to make adjustments in its strategies with recommendations on the following:
Improved Budget Performance: Urgent attention is needed to enhance budget performance, especially in terms of capital expenditure, as it has been consistently low relative to recurrent expenditure over the years.
Investment in Transport Infrastructure: Particular emphasis is recommended on investing in transport infrastructure to mitigate the high cost of fuel and address logistical challenges impacting the movement of goods across the nation.
Diversification and Export Infrastructure: The government is urged to build investor confidence and enhance forex earnings through non-oil exports. This includes increased investment in export infrastructure through automation and critical port reforms to reduce bottlenecks.
Human Capital Development: Commitment to significantly improving budget implementation in strategic sectors such as agriculture, education, health, infrastructure, and security is emphasized for the advancement of human capital development.
Revenue Collection: Efforts should be made to scale up revenue collection by the Federal Inland Revenue Service (FIRS) through consistent tax administrative measures, digitalization, and policy reforms.
