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The Lagos Chamber of Commerce and Industry (LCCI) has identified agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as critical drivers of Nigeria’s economic growth in 2026.
The chamber said unlocking these sectors will require strong execution, including scaling irrigation and agro-value chains, cutting power and logistics costs for manufacturers, accelerating infrastructure delivery through public-private partnerships (PPPs), sustaining oil and gas reforms, and aligning education and skills development with private sector needs.
The Director-General, Dr. Chinyere Almona, who made the statement in the 2026 budget review, commended the early presentation of the budget before the end of 2025, noting that it signals growing confidence in the economy. She attributed this to moderating inflation, improving external reserves, and recovering investor sentiment, adding that the move reflects efforts to consolidate reforms and translate stability into higher output, job creation, and shared prosperity.
However, Almona expressed concern over Nigeria’s weak budget implementation capacity, warning that the simultaneous operation of multiple budgets — including the 2024 Budget, a Supplementary Budget, and the 2025 and 2026 budgets — could strain fiscal coordination, transparency, and effective project execution.
She noted that the 2026 budget prioritises production-oriented spending, with capital expenditure of N26.08 trillion, about 45 per cent of total outlays, exceeding non-debt recurrent expenditure of N15.25 trillion.
Nonetheless, she described the N15.52 trillion allocated to debt servicing as a heavy fiscal burden, underscoring the need for stricter borrowing discipline, improved revenue efficiency, and expanded PPPs to protect growth-enhancing investments.
The DG also cautioned that the budget’s macroeconomic assumptions appear optimistic and may pose fiscal risks. She pointed to the exchange rate assumption of ₦1,512/US$, compared with ₦1,500/US$ in the 2025 budget and about ₦1,446/US$ as of end-November 2025, suggesting expectations of mild depreciation. While this could boost naira revenues, she warned it may raise import costs, debt servicing obligations, and inflationary pressures.
Similarly, Almona said the inflation projection of 16.5 per cent in 2026 may be optimistic, especially in a pre-election year when higher government and political spending could expand money supply and intensify inflation.
She further highlighted key risks to monitor, including declining oil prices due to geopolitical tensions, new tax laws expected in 2026, insecurity affecting food production, high cost of doing business, and policy inconsistencies — all of which could hinder Nigeria’s ambition of achieving a $1 trillion economy by 2030.
Almona stressed the need to resolve issues around the naira-for-crude policy, increase crude supply to local refineries to boost domestic refining capacity, conserve foreign exchange, and strengthen internationally recognised regulatory oversight in the oil and gas sector.
Overall, she said the 2026 Budget offers a credible opportunity for Nigeria to move from recovery to expansion, adding that its success will depend more on execution discipline, capital efficiency, and sustained support for productive sectors.
“LCCI remains committed to working with government to ensure the budget delivers stronger growth, more jobs, and a more competitive Nigerian economy,” she said.
