2026: Cut Debt, Boost Agric, Power To Meet Growth Targets, Lagos Chamber Of Commerce Urges Tinubu

The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government to slash debt servicing costs, boost the agriculture and power sectors, and prioritise growth drivers to unlock Nigeria’s 2026 economic potential.

The chamber identified key sectors tipped to drive Nigeria’s economic growth in 2026 to include agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development.

The LCCI emphasised that unlocking these sectors will require decisive execution, including scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers, accelerating infrastructure delivery through public-private partnerships, and aligning education and skills development with private-sector needs.

According to LCCI Director-General Dr. Chinyere Almona, these steps are essential amid a “meaningful shift from macroeconomic stabilisation toward growth acceleration” in the 2026 budget.

Dr. Almona, while praising the early budget submission, warned of risks, stating, “We recognise the need to address the substantial N15.52 trillion allocated to debt servicing. This is a critical area where stricter borrowing practices, improved revenue efficiency, and the expansion of public-private partnerships are essential to fostering growth-centric investments.”

She spotlighted agriculture, power, and other sectors as “fundamental drivers of growth for 2026,” urging, “scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers,” alongside infrastructure via public-private partnerships and skills aligned to private needs.

On energy challenges, Almona stressed, “resolving the complexities surrounding the Naira for crude, enhancing oil supply to local refineries, and instituting internationally standardised regulatory oversight in the oil and gas sector will be essential.

According to her, the federal budget reflects a meaningful shift from macroeconomic stabilisation toward growth acceleration, showcasing increasing confidence in the economy, bolstered by moderating inflation, enhanced external reserves, and a recovering investor sentiment. It is encouraging to see a deliberate focus on consolidating reforms that aim to translate stability into tangible benefits such as increased output, job creation, and shared prosperity.

“The Chamber is particularly optimistic about the budget’s strong emphasis on production-oriented spending. With capital expenditure of N26.08 trillion, representing around 45 percent of total outlays significantly surpassing non-debt recurrent expenditure of N15.25 trillion, this structure supports vital infrastructure development, industrial growth, and enhanced productivity.

“However, we recognise the need to address the substantial N15.52 trillion allocated to debt servicing.

This is a critical area where stricter borrowing practices, improved revenue efficiency, and the expansion of public-private partnerships are essential to fostering growth-centric investments.”

Almona noted that “a detailed analysis of the 2026 budget reveals some hopeful macroeconomic assumptions that we should monitor closely to mitigate fiscal risks. The oil price benchmark of $64.85 per barrel, although set lower than the $75.00 benchmark for 2025, may be overly optimistic in comparison to the 2025 average price of approximately $69.60 and current prices of around $60 per barrel. Effectively managing this assumption is important, as 35.6 percent of the projected revenue stems from oil receipts.

“Similarly, the oil production benchmark of 1.84 million barrels per day is a stretch compared to the current production level of roughly 1.49 million barrels per day. Achieving this target will necessitate significant improvements in security, infrastructure, and sector investments, especially given ongoing challenges such as oil theft and pipeline vandalism.”

She added that “the exchange rate assumption of N1,512 per dollar, while slightly higher than N1,500 per dollar in the 2025 budget, suggests a mild depreciation that could support naira-denominated revenue but also poses challenges like increased import costs, debt servicing, and inflation management.”

She also pointed out that “we also recognise the ongoing challenge posed by Nigeria’s historically fluctuating budget implementation capacity. This situation may be exacerbated by the simultaneous management of multiple budget cycles, including the 2024, Supplementary, and 2025 budgets, affecting fiscal coordination, transparency, and the effective execution of projects.”

She stated that “as we look to the future, LCCI sees agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as fundamental drivers of growth for 2026.”

She also pointed out that “attention should also be paid to external factors such as fluctuating oil prices influenced by geopolitical developments, new tax laws set to begin in 2026, and ongoing challenges in food production and business costs.

“Addressing these issues will be vital as we strive for a $1 trillion economy by 2030. Additionally, resolving the complexities surrounding the Naira for crude, enhancing oil supply to local refineries, and instituting internationally standardised regulatory oversight in the oil and gas sector will be essential.”