2025 Budget Blues: NACCIMA Warns of Tough Road Ahead for Private Sector
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has raised alarm over the challenging economic conditions facing the private sector as the nation enters 2025.
In a candid New Year message, NACCIMA criticized the performance of the 2024 economic reforms, describing them as imbalanced and burdensome for private enterprises. According to the association, metrics and data reveal that the private sector has been disproportionately impacted by inflation, currency devaluation, high borrowing costs, and unpaid government commitments.
“All data confirm that the Nigerian private sector has borne the brunt of the current economic reforms,” NACCIMA stated. “Meanwhile, the public sector continues to expand, benefiting from high capital transfers and revenues.”
Public Sector Gains, Private Sector Pains
The association lamented the disparity between the thriving public sector and the struggling private sector. It accused the government of exacerbating economic woes through excessive fiscal deficits, which are being financed by unsustainable borrowing at high interest rates.
“Fiscal deficits arise when public sector spending exceeds income. These deficits, funded through borrowing, fuel high interest rates and inflation,” NACCIMA explained.
It also criticized the government’s revenue claims, arguing that customs duties and taxation do not reflect productivity but rather a transfer of wealth from the private sector to an increasingly unproductive public sector.
Call for Action
NACCIMA called for urgent reforms to reverse the trend, recommending that the public sector reduce spending and prioritize efficiency. It also urged the government to recognize the private sector as a key stakeholder in the nation’s economic recovery.
“Nigeria has immense potential, innovative private sector minds, capital, and opportunities,” the group noted. “We need a listening economic team that values the private sector as essential partners in driving sustainable growth.”
The association warned that failure to address these imbalances could lead to deeper economic strain, hindering the goals outlined in the 2025 budget.