LCCI: 2026 Budget success hinges on execution, not size, as debt climbs to N152trn

The Lagos Chamber of Commerce & Industry (LCCI) has stated that the 2026 Budget offers a credible opportunity to transition Nigeria from economic recovery to expansion.

LCCI President, Leye Kupoluyi, emphasized that the budget’s success will depend less on the size of its allocations and more on execution discipline, capital efficiency, and sustained support for productive sectors.

Kupoluyi expressed concern over Nigeria’s historically weak budget implementation, which he warned is likely to be further strained by the operation of multiple budget cycles within a single year.

He identified agriculture, manufacturing, infrastructure, energy, and human capital development as key growth drivers for 2026.

Unlocking these sectors, he added, will require decisive actions such as scaling irrigation, reducing power costs for manufacturers, accelerating infrastructure through Public-Private Partnerships (PPPs), and aligning education with private-sector needs.

The LCCI President also issued a caution on the nation’s rising debt, which reached N152.40 trillion in the second quarter of 2025—a year-on-year increase of 13.5%.

He noted that this upward trajectory reflects both fresh borrowings and the impact of a depreciating exchange rate on external debt. Kupoluyi urged the government to intensify efforts to expand non-oil revenue, improve tax efficiency, and curb recurrent expenditure to safeguard long-term economic stability.

On the government’s proposed sale of national assets to generate N189 billion, Kupoluyi stressed that the process must be transparent, competitively executed, and supported by strong governance.

The LCCI calls for the publication of a clear list of assets and recommends that the proceeds be reinvested in infrastructure and human capital development.

Regarding the N1.7 trillion provision in the 2026 budget to settle delayed payments to contractors, Kupoluyi stated that while it acknowledges the problem, recurring backlogs highlight deeper structural issues.

He called for sustained fiscal discipline and timely cash backing to restore contractor confidence.

Kupoluyi commended the government for progress in local energy production, noting that domestic sources now supply 87% of Nigeria’s cooking gas (LPG) demand.

He described this as a decisive break from import dependence that provides foreign exchange relief and a replicable model for broader economic transformation.

Finally, on the new tax regime, the LCCI called on companies to continue operations and remain formal with tax authorities.

Kupoluyi stated that successful implementation requires clarity, transparency, and a collaborative approach to enhance revenue without stifling economic growth.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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