Following the passage of the N55 trillion 2025 budget by the National Assembly, economic experts and manufacturers have called on the federal government to channel significant resources into infrastructure development to stimulate long-term economic growth.
Their concern arises as the budget increased by N5 trillion, and stakeholders insist that its impact will largely depend on how the funds are allocated.
David Etim, President of the Calabar Chamber of Commerce and Industry (CALCCIMA), emphasized that budgets are mere financial plans, and their success depends on the government’s ability to generate revenue and allocate funds effectively.
“The budget has increased by about N5 trillion. If that amount is directed toward infrastructure, it will transform the economy by driving productivity. However, if it goes into recurrent expenses, it will only worsen inflation,” Etim warned.
He expressed optimism that the government’s plan to reduce inflation to 24%, with a long-term goal of 15%, suggests a focus on productive investments.
“If this money is used for roads, power, and transportation, it will increase business efficiency, create jobs, and stabilize inflation,” he added.
Manufacturers also stand to benefit from better infrastructure, particularly an improved road network that will facilitate market access.
“With more roads opening up, businesses will grow, manufacturers will see higher demand, and the economy will expand,” Etim explained.
Daniel Dickson-Okezie, an SME expert and a member of the Lagos Chamber of Commerce and Industry (LCCI), also stressed the importance of infrastructure spending over short-term expenditures.
“Our budget still leans heavily on recurrent expenditure rather than capital projects. In advanced economies, the focus is on long-term investments, and Nigeria must follow this path,” he stated.
According to him, capital investment in infrastructure will create a ripple effect across different sectors, boosting employment and improving Nigerians’ overall standard of living.
“It is not just about raising the budget size. The key question is whether the funds will be used for meaningful development,” he concluded.
With industry leaders stressing the need for infrastructure-focused spending, all eyes are now on how the government will implement its budget. The effectiveness of these funds will determine whether the economy experiences real expansion or faces higher inflationary pressure.
Nigerians are also eager to see whether this budget will ease their financial struggles or deepen economic hardship.