The Lagos Chamber of Commerce and Industry (LCCI) has cautioned that Nigeria’s proposed 2026 Budget, which earmarks ₦15.52 trillion for debt servicing, poses serious risks to fiscal stability and economic growth, despite signs of improving macroeconomic conditions.
In a statement signed by Dr. Chinyere Almona, Director General of the Chamber, warned that the scale of debt servicing remains a major structural concern that could crowd out productive investment and undermine long-term development.
LCCI also expressed concern over the late presentation of the 2026 Budget, describing it as a setback for effective fiscal planning. With the National Assembly adjourning on December 23 and set to reconvene on January 27, 2026, the Chamber noted that the chances of passing the Appropriation Act before year-end are slim, potentially disrupting the January–December budget cycle and delaying implementation.
President Bola Tinubu presented the 2026 Budget on December 20, just days before the legislative recess for the Christmas and New Year holidays.
While acknowledging these concerns, LCCI noted that the 2026 Budget signals a shift from macroeconomic stabilisation to growth acceleration. The Chamber said the proposal builds on moderating inflation, improving external reserves, and gradually recovering investor confidence, with the aim of translating recent reforms into higher output, job creation, and broader economic inclusion.
Capital expenditure is projected at ₦26.08 trillion, accounting for about 45 per cent of total spending and exceeding non-debt recurrent expenditure estimated at ₦15.25 trillion. LCCI described the allocation as supportive of infrastructure development, industrial expansion, and productivity growth, but warned that escalating debt service obligations could weaken its overall impact.
The Chamber described the Budget’s macroeconomic assumptions as relatively optimistic. It cautioned that the oil price benchmark of $64.85 per barrel may be vulnerable to global market volatility, while the production target of 1.84 million barrels per day could be difficult to achieve due to security challenges, infrastructure gaps, and underinvestment.
Concerns were also raised over the exchange rate assumption of ₦1,512 to the dollar and the inflation forecast of 16.5 per cent, with LCCI warning that pre-election spending pressures could heighten inflationary and macroeconomic risks.
Looking ahead, the Chamber identified agriculture, manufacturing, infrastructure, energy, and human capital development as key growth drivers. It stressed that strict execution discipline, restrained borrowing, and stronger public–private partnerships would be essential to achieving the Budget’s objectives.
