Public sector deficit, biggest threats to $1trn economy goal — NACCIMA, OPSN

By Seun IbiyemiThe Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organised Private Sector of Nigeria (OPSN) have identified the country’s persistent public sector deficit as the primary challenge in achieving the Federal Government’s ambitious target of transforming Nigeria into a $1 trillion economy by 2030.In a statement, Dele Kelvin Oye, President of NACCIMA and Chairman of OPSN, urged the Federal Government to immediately implement a more transparent and disciplined public financial management framework.He called for a focus on capital expenditure rather than recurrent spending, suggested broadening the tax base instead of increasing tax rates, and stressed the need to reduce financial leakages at all levels of government.

“Continuous public sector deficits and excessive borrowing, especially to fund recurrent expenses, are stifling private investment and exacerbating inflation,” Oye cautioned. “We need rigorous reforms in public financial management to restore macroeconomic stability and rebuild investor confidence.”Oye praised Finance Minister Wale Edun and Central Bank Governor Olayemi Cardoso for their candidness at the recent IMF/World Bank Spring Meetings, where they acknowledged the significant macroeconomic challenges facing Nigeria.



He also acknowledged the government’s willingness to collaborate with development partners on initiatives related to job creation and youth empowerment.Although Oye expressed support for the government’s vision of achieving a $1 trillion economy, reducing inflation to single digits, and expanding digital infrastructure, he emphasised that the rising poverty levels, which the World Bank projects will reach 56 per cent by 2027, necessitate urgent and targeted interventions.He raised alarms over the high commercial lending rates, which range from 30 per cent to 40 per cent, warning that such an environment hinders entrepreneurship, agricultural development, and industrial growth.

Oye called for the establishment of special credit windows for micro, small, and medium enterprises (MSMEs) and strategic sectors to unlock employment opportunities and stimulate economic expansion.On youth migration and national security, the OPSN chairman pointed to the importance of large-scale public works projects, digital skills training, and rural enterprise programmes to address the economic disenfranchisement that is pushing skilled Nigerians abroad.He also urged reforms in energy supply, policy consistency, and food security, recommending expedited food importation support, input subsidies for farmers, and the swift development of local refining capacity through modular refineries.

Looking internationally, Oye suggested that Nigeria recalibrate its foreign policy to capitalise on emerging global economic shifts, particularly by forging strategic partnerships with BRICS nations and China to attract investment and diversify the economy.Oye acknowledged the boldness of ongoing reforms but stressed that these efforts must be coupled with immediate and inclusive actions to alleviate the socioeconomic challenges facing Nigerians.“Nigeria cannot rely on the patience of its citizens when their livelihoods are under threat,” he warned.

“The time to recalibrate, support the productive sector, rationalise deficit spending, address insecurity, and restore affordable credit is now.”NACCIMA, he said, stands ready to collaborate with the government and international partners to meet this critical national challenge.The post Public sector deficit, biggest threats to $1trn economy goal — NACCIMA, OPSN appeared first on Nigerian NewsDirect.

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