By Jennete Ugo Anya
With Nigeria aiming to accelerate economic growth in 2026, the Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government to curb rising debt servicing costs, strengthen the agriculture and power sectors, and prioritise areas that can drive broad-based growth.
The call came as the chamber reviewed the 2026 federal budget and broader macroeconomic direction, noting what it described as a gradual shift from stabilisation to growth acceleration. While acknowledging improvements in economic indicators, the LCCI warned that without decisive execution and structural fixes, growth targets may remain difficult to achieve.
In a statement by its Director-General, Dr Chinyere Almona, the chamber identified agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as the key sectors that could drive Nigeria’s economic expansion in 2026. She said unlocking the potential of these areas would require targeted action rather than broad policy intentions.
According to Dr. Almona, agriculture remains central to both growth and stability, particularly given Nigeria’s food security challenges and high food inflation. She called for expanded irrigation, stronger agro-value chains, and improved access to finance and inputs to raise productivity and reduce post-harvest losses. Without these interventions, she said, agriculture would struggle to deliver its full contribution to growth and employment.
Manufacturing, she noted, faces persistent constraints from high power and logistics costs, which continue to erode competitiveness. Reducing these costs, alongside improving transport infrastructure and access to foreign exchange for raw materials, would be critical to reviving industrial output and expanding value addition.
The chamber also placed strong emphasis on infrastructure, urging the government to accelerate delivery through public-private partnerships. Dr. Almona said limited fiscal space makes it imperative to attract private capital into roads, ports, rail and energy projects, rather than relying solely on public funding.
Power sector reform featured prominently in the LCCI’s recommendations. Dr. Almona described reliable and affordable electricity as non-negotiable for growth, stressing that inefficiencies in the sector continue to undermine productivity across the economy. She said reforms must go beyond policy statements to include practical steps that improve generation, transmission and distribution.
On public finances, the chamber expressed concern over the scale of debt servicing in the 2026 budget. Of the total expenditure, N15.52 trillion is earmarked for servicing debt, a figure the LCCI described as a major constraint on growth-focused spending.
“We recognise the need to address the substantial allocation to debt servicing,” Dr. Almona said, adding that stricter borrowing practices, improved revenue efficiency and expanded public-private partnerships are essential to free up resources for productive investment.
While commending the early submission of the 2026 budget, she cautioned that optimistic assumptions could pose fiscal risks if not carefully managed. She pointed to the oil price benchmark of $64.85 per barrel, noting that while it is lower than the $75 benchmark used in the 2025 budget, it may still be ambitious given recent price trends.
Oil receipts are projected to account for more than a third of government revenue, making the budget sensitive to price fluctuations. Dr. Almona warned that any sustained dip in oil prices could widen the fiscal gap and increase borrowing pressures.
She also raised concerns about the oil production benchmark of 1.84 million barrels per day (mbpd), compared with current production of about 1.49 mbpd. Achieving this target, she said, would require significant improvements in security, infrastructure and investment in the sector, particularly in tackling oil theft and pipeline vandalism.
The exchange rate assumption of N1,512 to the dollar also drew attention. Dr. Almona said the projection suggests mild depreciation, which could boost naira-denominated revenue but may also increase import costs, complicate inflation management and raise the burden of external debt servicing.
Despite these risks, the chamber acknowledged signs of growing confidence in the economy, citing moderating inflation, stronger external reserves and improving investor sentiment. It described the budget’s emphasis on production-oriented spending as encouraging, noting that capital expenditure of N26.08 trillion accounts for about 45 percent of total spending and exceeds non-debt recurrent expenditure.
This structure, the LCCI said, supports infrastructure development, industrial growth and productivity gains. However, Dr. Almona stressed that effective implementation remains a long-standing challenge for Nigeria.
She noted that managing multiple budget cycles simultaneously, including the 2024, supplementary and 2025 budgets, could strain coordination and transparency, potentially undermining execution.
Beyond domestic issues, the chamber urged the government to remain alert to external risks, including geopolitical tensions affecting oil prices, new tax laws scheduled to take effect in 2026, and ongoing pressures from food production costs and business operating expenses.
As Nigeria pursues its ambition of becoming a $1 trillion-dollar economy by 2030, Dr. Almona said resolving energy sector bottlenecks will be critical. She highlighted the need to address challenges around the naira-for-crude policy, improve oil supply to local refineries, and strengthen regulatory oversight in line with international standards.
In the LCCI’s view, the path to growth is clear but demanding. Agriculture, power, manufacturing and human capital offer real opportunities, but only if supported by disciplined fiscal management, targeted reforms and consistent implementation. Without these, the Chamber warned, Nigeria risks missing a narrow window to convert economic stability into lasting prosperity.
