Market News

By Peter Moses, Lagos 

The Lagos Chamber of Commerce and Industry (LCCI) yesterday expressed worry over the federal government’s new borrowings, which it noted “Are not for productive investments.”

The body said Nigeria’s debt is projected to hit over N157 trillion by December 2025, blaming it on “The planned borrowing of N13 trillion to finance the 2025 budget deficit.”

The President of LCCI, Gabriel Idahosa, while addressing newsmen on the first quarter economic performance, said Nigeria’s total public debt rose to N144.67 trillion as of December 31, 2024, representing a 48.58 per cent increase compared to N97.34 trillion recorded on the end of December 2023.  

He said the chamber notes an improvement in the government’s fiscal situation, but expressed concern over the government’s new borrowings.

The LCCI president, therefore, advised the government to revisit Nigeria’s debt management plan with the objective of cheaper sources of debt through better use of our national assets.

“The country’s debt is projected to hit over N157 trillion by December 2025, reflecting the planned borrowing of N13 trillion to finance the 2025 budget deficit.

“The chamber notes improvement in the government’s fiscal situation; however, it is worried about the government’s new borrowings, particularly when such borrowings are not for productive investments. We, therefore, advise the government to revisit Nigeria’s debt management plan with the objective of cheaper sources of debt through better use of our national assets,” he said.

During the quarter, Idahosa noted that the Naira maintained stability after a significant depreciation across foreign exchange (FX) markets in 2024. 

He, however, said the most recent rates of the Naira suggest that the FOREX market needs more supply to meet the demand pressures that have emerged lately.

“The chamber recognises that the stability of the exchange rate for some time was due to CBN’s intervention and improved transparency of the FX market with the introduction of the Electronic Foreign Exchange Matching System.

“However, the stability of the exchange rate will largely depend on crude oil

production and improved oil receipts,” he said. 

He said Nigeria’s inflation rate rose to 24.23% in March 2025 after a consecutive decline in the first two months of the year. 

He said food inflation, however, further eased to 21.79% in March from 23.51% in February, and when compared to January 2025 (26.08%), it declined by 4.29%. 

“On the other hand, core inflation increased by 1.43% points to 24.43% in March,” he said.

He said despite the decline recorded in food inflation, the government must remain focused on boosting food production through ongoing policy reforms and expected quick actions with the declaration of a national emergency on food security. 

Quoting data from the Central Bank of Nigeria (CBN) on Nigeria’s external reserves decline, he said the body said it is watching closely the likely impact of Trump’s tariff regime and what level of disruptions we may see with trade and growth across economies. 

He said diaspora remittances may also be affected in the medium to long term, which can put more pressure on receipts, and how that may affect the Naira rates with the dollar.

On power, the LCCI president said businesses and households have continued to suffer under a “double whammy” of generating their own electricity with expensive fuels and paying higher tariffs on electricity, even as we experience a weak power supply. 

He warned that “Without fixing the power sector to perform at optimal levels, our aspiration to achieve a $1 trillion economy may remain a dream with no reality.”