The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) is alarmed by the state of Nigeria’s private sector in 2024. The group warns that without quick economic reforms, the sector may face long-term instability.
NACCIMA’s National President, Dele Kelvin Oye, expressed deep dissatisfaction with the economic performance. He pointed out that high inflation, soaring borrowing costs, and currency devaluation have severely impacted businesses. Oye highlighted that while the public sector thrives, the private sector continues to suffer.
Oye explained that the public sector’s increasing fiscal deficits, fueled by unsustainable borrowing at high interest rates, are damaging the economy. He urged the government to cut spending and improve efficiency to reduce inflation and borrowing costs.
The NACCIMA president criticized the government’s reliance on taxes and regulatory fees. These, he said, are simply wealth transfers from the private sector to a growing public sector that doesn’t generate goods or services. Oye warned that the 2025 budget’s focus on unproductive areas could worsen the situation.
NACCIMA also proposed that the government prioritize locally produced goods in public infrastructure projects. This would ease pressure on foreign exchange and support local industries. Oye called for reforms in transportation, power, and technology to boost manufacturing and services.
He also recommended reducing corporate taxes to 19% and VAT to 7.5%. Such moves, he said, would encourage growth and increase government revenue. Oye stressed the importance of greater collaboration between government and the private sector to align policies with business needs.
Finally, NACCIMA urged the government to invest in infrastructure rather than awarding contracts. Oye called for a full review of government spending and emphasized that fostering private sector growth is key to unlocking Nigeria’s potential.