Economy
2025 Budget: LCCI Seeks Proper Budget Implementation, Improved Tax-to-GDP Ratio
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has called for budget implementation, saying it will be the core driver of the nation’s path to recovery.
The LCCI Director-General, Mrs Chinyere Almona, said this on Thursday in Lagos, in reaction to the 2025 budget proposal which was presented by President Bola Tinubu to the joint session of the National Assembly on Wednesday in Abuja.
She said, “Beyond the figures and assumptions, budget implementation is the key performance driver.”
“The 2024 budget implementation cycle extension to June 2025 should be closely watched to avoid such in the future as it can signal weak budget execution.
“We call on the National Assembly to expedite action on the appropriation debates.
“We are concerned that much-needed scrutiny and consultations on the budget may not be possible if the January-December budget cycle is to be maintained,” she said.
President Tinubu revealed that in 2025, the country was targeting N34.82 trillion in revenue to fund the country’s projected expenditure of N47.90 trillion, including N15.81 trillion for debt servicing.
According to Mrs Almona, to achieve this, accelerating tax reforms, simplifying processes, and incorporating the informal sector were essential.
She also drummed the urgency of improving Nigeria’s tax-to-gross domestic product (GDP) ratio, to meet the ambitious N34.82 trillion revenue projection.
She said that the country must leverage technology to expand the tax net, minimise leakages, and foster
“Fiscal discipline must complement these efforts to effectively manage the N15.81 trillion debt servicing allocation.
“Nigeria must prioritise high-impact, self-sustaining projects and explore alternative funding mechanisms, such as public-private partnerships, to keep debts within sustainable limits.
“Structural reforms are indispensable to reducing inflation to 15 per cent and stabilising the exchange rate at N1,500 to the dollar, ”she said.
She said that addressing food and energy supply chain bottlenecks, fast-tracking local petroleum production projects, and fostering alignment between monetary and fiscal policies would restore confidence in the Naira and ease inflationary pressures.
“Achieving the ambitious oil production target of 2.06 million barrels daily requires decisive action to resolve pipeline vandalism, theft, and underinvestment.
“Across the three streams of operations in the oil and gas industry, a sound regulatory environment can boost activities and investments in the short term,” she said.
Addressing the priorities of the budget, Almona lauded Tinubu’s attention to security, infrastructure, education, health, and agriculture, to achieve macroeconomic stability and inclusive growth.
The LCCI head said that the allocation of N4.91 trillion for defence was commendable compared to previous allocations.
She, however, said that the funding must be complemented with enhanced intelligence, surveillance technology, and simultaneous investment in poverty reduction and youth empowerment.
Mrs Almona said that the N4.06 trillion earmarked for infrastructure and significant allocations for education and health called for swift and transparent project execution.
According to her, while the budget outlines bold goals, these aspirations hinge on robust policy implementation, sustained execution, and coherence across government strategies.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed in negative territory on Wednesday, December 18 after it gave up 0.68 per cent at the close of trading activities.
The loss was influenced by the decline in the share price of FrieslandCampina Wamco Nigeria Plc by N4.00 to close the day at N40.00 per unit, in contrast to the preceding day’s N44.00 per unit.
Consequently, the NASD Unlisted Security Index (NSI) went down by 20.50 points to settle at 3,003.30 points compared with the previous session’s 3,023.80 points and the market capitalisation of the bourse decreased by N7.03 billion to close at N1.029 trillion versus Tuesday’s closing value of N1.036 trillion.
Business Post reports that during the midweek trading day, the alternative stock exchange recorded a price gainer and it was Nipco Plc, which improved its value by N4.20 to settle at N136.46 per share compared with the previous day’s N132.30 per share.
Yesterday, the volume of securities traded at the bourse depreciated by 88.9 per cent to 59,624 units from 540,503 units, and the value of shares traded by the market participants shrank by 84.4 per cent to N4.6 million from the N29.4 million achieved a day earlier, while the number of deals increased by 66.7 per cent to 25 deals from 15 deals.
Geo-Fluids Plc remained the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units valued at N3.9 billion, as the second spot was picked by Okitipupa Plc with the sale of 752.2 million units for N7.8 billion, and the third position occupied by Afriland Properties Plc with 297.7 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with a turnover of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 billion.
By Adedapo Adesanya
The Naira was relatively stable against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the currency market on Wednesday, December 18.
The value of the local currency marginally depreciated against the greenback yesterday by 15 Kobo or 0.01 per cent to sell at N1,544.20/$1 at the official market, in contrast to the preceding day’s N1,544.05/$1.
In the same vein, the Nigerian currency lost N7.44 against the Pound Sterling in the spot market during the trading day to sell for N1,954.07/£1 compared with Tuesday’s closing price of N1,946.63/£1 and against the Euro, it depreciated by N3.16 to trade at N1,614.89/€1 versus the preceding session’s N1,611.73/€1.
The country’s exchange rate seems to be stable at the moment as a result of the Electronic Foreign Exchange Matching System (EFEMS) of the Central Bank of Nigeria (CBN) designed to ensure transparency in the FX market.
On Wednesday, President Bola Tinubu presented the 2025 budget to the National Assembly, with an exchange rate projection of N1,500/$1.
The budget projects that inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately N1,700 per Dollar to N1,500/$1. The base crude oil production assumption is set at 2.06 million barrels per day.
At the parallel market, the Nigerian currency remained unchanged against the Dollar at midweek at N1,660/$1.
Meanwhile, in the cryptocurrency market, profit-taking continued as the US Federal Reserve hinted at a few rate cuts in 2025.
US Federal Reserve chairman, Mr Jerome Powell said at a press conference after the meeting that the central bank wasn’t allowed to own Bitcoin under current regulations — in response to a question about President-elect Donald Trump’s strategic reserve promises.
Litecoin (LTC) fell by 8.4 per cent to $108.31, Ripple (XRP) slumped by 6.1 per cent to $2.36, Dogecoin (DOGE) lost 5.5 per cent to sell at $0.3618, Cardano (ADA) depreciated by 3.9 per cent to $0.9812, Ethereum (ETH) declined by 3.8 per cent to $3,680.00, Bitcoin (BTC) weakened by 2.5 per cent to $101,166.28, Solana (SOL) dropped 2.3 per cent to trade at $210.35, and Binance Coin (BNB) went down by 1.00 per cent to $701.66, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Adedapo Adesanya
Oil prices appreciated on Wednesday after US crude inventories fell and the US Federal Reserve cut interest rates as expected, with Brent futures chalking up 20 cents or 0.27 per cent to trade at $73.39 per barrel and the US West Texas Intermediate (WTI) growing by 50 cents or 0.71 per cent to $70.58 a barrel.
Yesterday, the US Energy Information Administration (EIA) reported an inventory decline of 900,000 barrels for the week to December 13 versus an inventory draw of 4.7 million barrels estimated by the American Petroleum Institute (API) for the same week on Tuesday.
A week ago, the EIA estimated a crude oil inventory draw of a much more moderate 1.4 million barrels, while sizable builds in fuel stocks dampened the potential bullish effect of the crude inventory move.
For the week to December 13, the EIA estimated mixed changes in gasoline and middle distillate inventories.
Also, the US Federal Reserve cut interest rates for the third time to the 4.25 per cent and 4.50 per cent range.
The Federal Reserve, which hiked rates aggressively in 2022 and 2023 to combat a surge in inflation, began its easing cycle in September with a half-percentage-point cut in borrowing costs and followed up with a quarter-percentage-point cut last month.
The US central bank also signalled it will slow the pace at which borrowing costs fall further, given a relatively stable unemployment rate and little recent improvement in inflation.
There are projections that they will make just two quarter-percentage-point rate reductions by the end of 2025.
Lower rates decrease borrowing costs, which can boost economic growth and oil demand.
The decision led to the strengthening of the Dollar and limited gains in oil prices, as a stronger greenback makes oil more expensive in other countries, which can reduce demand.
Meanwhile, the latest sanctions announced by the UK and the EU against Russia are believed to limit the downward potential for oil prices but the effect is likely to be short-lived.
Fitch Ratings said on Wednesday that oil demand growth next year is likely to be in line with this year’s and the slower pace of growth compared to 2022 and 2023 would result in oil prices averaging $70 per barrel in 2025
This year, oil prices have averaged about $80 per barrel.
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