ABUJA, Nigeria (VOICE OF NAIJA)-The Lagos Chamber of Commerce and Industry has urged the Federal Government to enhance crude oil refining and petrol exports to support its inflation reduction target and strengthen the naira.
President of the LCCI, Gabriel Idahosa stated in a telephone interview with Saturday PUNCH that the proposed 2025 budget of N54.99tn is inadequate to achieve Nigeria’s broader economic goals, including the ambition of a $1trn economy by 2030 and reducing inflation from 34.8 per cent to 15 per cent.
“None of the budget either this year or next year will be enough to achieve the broad targets of growing the economy,” Idahosa said.
“This budget is just one of several steps towards that ultimate objective.”
He acknowledged that while the 15 per cent inflation target is ambitious, it remains achievable with disciplined policies, particularly in the foreign exchange market.
“Some of the targets have been considered ambitious, like the inflation reduction of inflation targets,” he remarked.
“A lot of observers feel that it is quite ambitious and it will be difficult to attain.
“The government has given itself a very challenging target on inflation reduction. So, we will see how they can achieve it. Everyone is hoping that they can achieve it.”
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He urged the government to stabilise the exchange rate at N1,300, noting, “If they can reduce the stable exchange rate from N1,500 to about N1,400 or N1,300 as the sustainable new exchange rate benchmark, then you can see inflation coming down even more than their targets.”
Idahosa highlighted the need to scale up local refining and petroleum exports to stabilise the naira and curb inflation.
“It is very important that we are producing enough and exporting. The more we export refined petroleum products, the lower the exchange rate; typically, the price of the dollar will be coming down,” he said.
He further noted that increased refining capacity, alongside a rise in non-oil exports such as fertilisers and cement, would create a surplus of foreign currency, strengthening the economy.
He emphasized the importance of the Dangote Refinery and NNPC refineries in ending petrol imports and transforming Nigeria into a net exporter of refined petroleum products.
“We have the Dangote Refinery and NNPC refineries, to give enough for us to completely stop import of petrol. Generally, the surplus of extra foreign currency in the economy is increasing as we produce more refined products and non-oil exports,” he said.
“We are already exporting, but we must ensure we stop importing petrol completely,” he added.
Idahosa also predicted a steady decline in inflation throughout the year, attributing it to lower transportation costs driven by the expansion of Compressed Natural Gas and Liquefied Petroleum Gas vehicles, as well as metro rail projects in Lagos, Abuja, and other cities.
“The metro lines and the gas are very crucial to significantly reduce transportation costs, and that will reduce inflation,” he stated.
Expressing confidence in Nigeria’s economic trajectory, Idahosa noted that a stronger naira would result from increased exports and the nation’s transition from a consumption-driven economy to a production-based one.
“We are now recognised worldwide as a producing country for refined petroleum products,” he said. “The outlook is certainly positive.”