LCCI warns of policy risks despite 41.7% GDP rebase surge
President of the Institute of Chartered Accountants of Nigeria (ICAN), Chidi Ajaegbu, has expressed fears that the country’s currency, the naira, might be devalued further, probably after the 2027 general elections.
Relatedly, the Lagos Chamber of Commerce and Industry (LCCI) raised concerns over Nigeria’s rising public debt, which climbed to N152.4 trillion last month, even as the nation’s rebased Gross Domestic Product (GDP) surged by 41.7 per cent to N372.8 trillion.
Ajaegbu, who is the 50th President of ICAN, made the assertion at the maiden edition of the Colloquium/Public Lecture organised by the Department of Accounting and Finance, Godfrey Okoye University (GOUNI), with the theme, ‘Harnessing the Capital Market for Catalysing Infrastructure Development and Economic Transformation in Nigeria: Prospects, Challenges & Roadmaps’, said government had indulged in excessive borrowing capable of plunging the nation into more economic woes.
He urged the government to be cautious in the bid to borrow loans, which are often difficult to repay, pointing out that during the Muhammadu Buhari administration, Nigeria borrowed recklessly.
“Excessive borrowing scares away investors. The governmentmust be cautious when taking loans. Buhari was reckless with taking loans,” he said, lamenting that this might further lead to devaluing the naira, which has been relatively stable in recent times.
As a result of the possible economic downturn for Nigeria, Ajaegbu, who is also the CEO of Heritage Capital Market Limited, said: “Few days after 2027, they might devalue the currency. Naira has been stable in the last five to six months, but this might change after the election in 2027.”
The Vice Chancellor of GOUNI, Prof. Christian Anike, noted that the lecture was partly designed to give students in the department practical knowledge of what is obtainable in the larger society, beyond theory, and urged both students and lecturers to pay rapt attention to the colloquium and the goodwill messages.
The Chairman of the occasion and Speaker of the Enugu State House of Assembly, Uche Ugwu, stressed the importance of the capital market, which he said helps in growing businesses and improving infrastructure development in any given society.
The keynote speaker, Prof Uche Uwaleke, who is the President of Capital Market Academics of Nigeria (CMAN), who spoke on Zoom, suggested that literacy about the capital market should be increased, so that people could invest wisely and improve their economic well-being, but expressed the view that the colloquium would proffer solutions.
LCCI urged both federal and state governments to adopt fiscal prudence, channel borrowing into productive sectors, and prioritise capital formation over recurrent spending.
Speaking during the Chamber’s quarterly State of the Economy address held at the Commerce House in Victoria Island, LCCI President Gabriel Idahosa said that while the economy is showing signs of recovery, the pace of structural reforms and fiscal discipline will determine whether the current gains can be sustained.
He stressed that “borrowing should be tied to measurable economic returns,” adding that excessive reliance on debt-financed recurrent expenditure remains a major threat to long-term stability.
According to him, the GDP rebasing has moderated Nigeria’s debt-to-GDP ratio to 39.4 per cent, but the country’s debt-servicing costs continue to rise, constraining fiscal flexibility.
He noted that while the rebased GDP of ₦372.8 trillion and a real growth rate of 4.23 per cent in the second quarter of 2025 reflect improving output, driven by a 20.46 per cent rebound in oil production and 3.64 per cent non-oil growth, the structural imbalance between the two sectors persists.
On fiscal performance, Idahosa disclosed that Federation Account Allocation Committee (FAAC) disbursements reached a record N16.6 trillion as of September 2025, reflecting stronger non-oil revenues. However, he cautioned that such fiscal expansion must be matched with accountability and productivity to avoid macroeconomic distortions.
The Chamber commended the Central Bank of Nigeria (CBN) for reducing the Monetary Policy Rate (MPR) from 27.5 to 27.0 per cent at its September meeting, noting that while monetary easing may stimulate lending and investment, fiscal and structural reforms remain indispensable to drive inclusive growth.
