Experts say 2025 budget will boost businesses, economy

Experts from the Nigerian Institute of Social and Economic Research (NISER) and Nigeria Economic Society (NES), yesterday, agreed that the 2025 budget could positively impact businesses and the nation’s economy if some concerns over its implementation were addressed.

In his submissions at a seminar tagged: Impact of the 2025 Budget on the business and economic sector’ held in Lagos, the Guest Speaker and Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Dr Muda Yusuf, said fixing structural challenges through infrastructure spending in the budget could impact positively on the economy and private sector.

He said businesses could benefit from the contracting and procurement activities as service providers’ or suppliers’ spending commences.

Although he expressed concern that while high government borrowing might hurt the private sector because of the crowding out effect in the credit market by the government, it would offer attractive low-risk investment in government securities to investors in financial instruments.

But despite the optimism expressed over the 2025 budget, concerns were, however, raised regarding its implementation.

He said: “As of the first quarter of 2024, implementation of the 2023 capital budget was still ongoing, while that of 2024 was yet to commence according to the budget implementation report of the budget and national planning ministry. Inevitably, the 2025 budget will also be rolled over to 2026.”

Apart from the concerns over implementation, Muda pointed out the need to separate infrastructure spending from the capital budget to enable a better assessment of government commitment to infrastructure development, which, according to him, is a major desire of the private sector.

In her submission in her opening speech, the Director General of NISER, Prof Antonia Simbine said: “The Nigerian economy is in transition triggered by the set of policies initiated a little less than two years ago and the needle has moved in certain areas and the economy may have been profoundly reshaped.”

In spite of the optimism she expressed, the don said: “The 2025 budget is the biggest ever in local currency terms amounting to N54.99 trillion to be funded through debt 69 per cent, loans 28 per cent, and asset sales two per cent, with priorities on defence and security, infrastructure, education, and health.”

In his remarks, the NES President, Prof Adeola Adenikinju, called for fiscal discipline, efficiency in public expenditure and innovative approaches to revenue mobilisation, including leveraging technology and broadening the tax base while ensuring that tax policies did not stifle productivity and business growth.