The President and Chairman of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa has stressed the importance of passing the Tax Reform Bill to broaden the tax base, simplify administration, and raise non-oil revenue by 25 per cent by 2026.
The LCCI boss who spoke at the 2025 Economic Review and Outlook Conference in Lagos on Thursday, stated Nigeria’s tax-to-GDP ratio, currently at 10.6 per cent, remains one of the lowest in the world.
The bills at the National Assembly have drawn controversy from some sections of the country which have opposed some of its provisions and asked for their withdrawal. The Northern governors have criticised the Value Added Tax (VAT) provisions, while its youths have requested that it be reduced to 3 per cent.
Idahosa also urged monetary authorities to remain vigilant, especially with the anticipated rebasing of GDP and the Consumer Price Index (CPI), cautioning against using potentially lower rebased inflation figures to justify complacency. Similarly, he warned fiscal authorities against exploiting a rebased GDP to justify further borrowing.
At the conference, he reflected on key achievements in 2024, and outlined expectations for the year ahead, in addition to a sustained focus on structural reforms and fiscal discipline to achieve Nigeria’s economic transformation.
He noted that 2024 was pivotal for Nigeria, marked by significant fiscal, energy, and trade policy reforms to address persistent economic challenges, including low non-oil revenue generation, inflation, and infrastructure deficits.
The Gross Domestic Product (GDP) growth rate for Q3 2024 reached 3.46 per cent, the highest since Q4 2023, with the non-oil sector driving much of the growth.
The services sector, which grew by 5.19 per cent, accounted for 53.58 per cent of overall GDP, bolstered by financial and insurance services (+30.8%), information and communication (+5.9%), and transportation and storage (+12.2%).
Idahosa highlighted the 2025 federal budget of N47.90 trillion as a bold attempt to consolidate fiscal reforms and address critical developmental needs.
With N8 trillion allocated to infrastructure projects and N5 trillion to education and healthcare, the budget aims to tackle long-standing challenges in these sectors. However, he cautioned about the N11.3 trillion budget deficit, which relies on domestic and external borrowing, raising concerns about debt sustainability.
The government’s GDP growth target of 4.2 per cent and inflation reduction to 15 per cent for 2025 hinge on effective policy implementation and global economic stability.
Idahosa emphasised the critical role of the private sector in driving economic growth and innovation, citing opportunities in agriculture, manufacturing, and renewable energy. He encouraged businesses to leverage government incentives and embrace digital transformation to remain competitive in a rapidly changing global economy.
He concluded by acknowledging the challenges ahead but expressed optimism about Nigeria’s economic transformation, citing deliberate policies in the 2025 federal budget and the structural reforms of 2024 as a roadmap for inclusive and sustainable growth.
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