In its New Year message, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) raised alarms over the nation’s economic trajectory, highlighting the adverse effects of current reforms on the private sector and calling for immediate corrective measures to address structural imbalances.
NACCIMA described the 2024 economic performance as unsatisfactory, particularly for the private sector, which has borne the brunt of policy-induced challenges such as soaring inflation, elevated borrowing costs, and significant currency devaluation. The association emphasized the need for reforms prioritizing private sector growth, stressing that Nigeria’s potential, capital, and innovative business minds require a more inclusive and responsive economic team.
While the public sector has seen gains through increased revenues and capital transfers, NACCIMA argued that these benefits have not translated to broader economic value, as the private sector grapples with heightened costs and reduced competitiveness. Excessive government borrowing, fueled by fiscal deficits, has driven unsustainable interest rates and inflation, further compounding the private sector’s struggles.
NACCIMA recommended a reduction in public sector spending and a shift toward more efficient allocation of resources to mitigate fiscal pressures. The association underscored the need to debunk the misconception that increased government revenue signifies improved productivity, asserting that much of this revenue stems from private sector contributions, not state-generated value.
The organization also criticized the skewed expenditure framework of the 2025 budget, which heavily favors capital transfers to sectors unlikely to add tangible value to national wealth. It called for financial prudence, including aggressive repayment of domestic loans and leveraging excess revenues to lower interest payments, which would free up resources for productive private sector investments.
On foreign borrowing, NACCIMA expressed concerns about overreliance on external debt, warning of potential exposure to economic shocks and currency volatility. It advocated for reforms that support local industries and reduce foreign exchange pressures, such as mandating government agencies to prioritize locally produced goods and services.
Additionally, NACCIMA urged investments in critical infrastructure like transportation, power, and digital technology to enhance local productive capacity. It highlighted the need for targeted policies to attract private sector investment in digital education, technical skills acquisition, and modern industries to address the country’s skill gap.
The association also called for a comprehensive review of government expenditure, urging the elimination of wasteful spending and reducing the size of public agencies. Countries like Argentina were cited as political systems that successfully reduced recurrent budget deficits through strategic decisions.
To foster a thriving private sector, NACCIMA proposed regulatory reforms to streamline bureaucratic processes, improve the ease of doing business, and align Nigeria’s standards with international benchmarks. It emphasized that the private sector must be positioned to lead economic growth and innovation, given its proven track record of driving development when adequately supported.
In an interview with Arise News, NACCIMA President, Mr. Dele Oye, reinforced these messages and called on the Tinubu administration to actively engage the private sector in its reform agenda. He expressed optimism that with the right policies, Nigeria could reclaim its position as Africa’s leading economy, as it once held in 2014.
