The Lagos Chamber of Commerce and Industry has called on the Federal Government to settle verified 2024 capital project liabilities to ease the financial distress faced by indigenous contractors.
President of LCCI, Leye Kupoluyi, on Thursday, during his address on the state of the economy, held in Lagos, noted that the N1.7tn earmarked for contractor payments in the 2026 budget was “a formal acknowledgement of persistent payment delays.”
He said, “The Federal Government’s earmarking of N1.7tn in the 2026 budget reflects a formal acknowledgement of persistent payment delays to contractors.
This provision aims to settle verified 2024 capital project liabilities and ease the financial distress faced by indigenous contractors.”
He urged that timely cash backing be maintained, adding that “sustained fiscal discipline and timely cash backing are critical to restoring contractor confidence and enabling infrastructure delivery.”
Highlighting recurring backlogs, the LCCI president noted that structural challenges, such as weak budget performance and delayed capital releases, have continued to undermine project execution.
On inflation, Kupoluyi urged governments at all levels to curb pressures from high energy costs, interest rates, logistics, and insecurity while sustaining agricultural production and fuel supply policies. He added that easing the cost of doing business would benefit both citizens and enterprises, especially low- and middle-income households.
The LCCI also praised the relative stability of the naira in 2025, noting that the currency strengthened by 6.52 per cent against the dollar at the official market. “Improved transparency in the foreign exchange market and stronger policy credibility have enhanced market confidence,” Kupoluyi said, pointing to Nigeria’s external reserves, which rose to $45.5bn by year-end.
Reviewing the 2026 Federal Budget, Kupoluyi described it as an opportunity for economic consolidation.
“The budget supports infrastructure development, industrial expansion, and productivity growth,” he said, adding that debt servicing at N15.52tn remains a fiscal burden that requires stricter borrowing discipline and expanded public-private partnerships.
Kupoluyi warned that weak budget implementation capacity, coupled with multiple overlapping budget cycles, could hinder effective project execution. He identified agriculture, manufacturing, infrastructure, energy, and human capital development as key sectors for growth in 2026, stressing the need for decisive execution.
He urged the government to explore non-debt financing sources, improve revenue efficiency, and expand tax compliance to sustainably fund national development. On the sale of national assets, the LCCI president recommended transparency, competitive execution, and reinvestment of proceeds into infrastructure and productivity-enhancing projects.
Kupoluyi also lauded the increase in domestic liquefied petroleum gas production, saying it strengthens energy security and resilience, and encouraged businesses to comply with the new tax regime to improve competitiveness and revenue generation.
Concluding his address, Kupoluyi reaffirmed the Chamber’s commitment to engaging government and stakeholders on actionable recommendations to boost Nigeria’s business environment.
“We call on the government to tackle these economic issues to deliver gains to citizens and businesses,” he said.
