Lagos Chamber of Commerce demands urgent fiscal reform as N7.71 trillion in 2025 projects remain stalled

LCCI President Leye Kupoluyi calls for urgent budget reform and infrastructure investment as manufacturing tax contributions rise despite energy crisis.

By: AXL Media

Published: May 1, 2026, 4:33 AM EDT

Source: Information for this report was sourced from Vanguard News

Fiscal Failures Stifling National Infrastructure

The Lagos Chamber of Commerce and Industry has issued a stern warning regarding the federal government's inability to execute its budgetary commitments effectively. During a quarterly economic review in Lagos, LCCI President Engr. Leye Kupoluyi noted that historical weaknesses in budget execution are creating a massive backlog of unfinished work. According to Kupoluyi, there is currently a rollover of N7.71 trillion in unimplemented capital projects from the 2025 fiscal year. This stagnation is largely attributed to bureaucratic bottlenecks and a systemic failure to release approved funds to the appropriate agencies, leaving the nation's infrastructure development in a state of suspended animation.

Manufacturing Sector Bolsters Revenue Amidst Hardship

Despite facing severe economic headwinds, the manufacturing sector has emerged as a primary driver of government revenue. LCCI data indicates that the sector’s Value Added Tax contributions reached N1.17 trillion in 2025, representing a significant 45.61 percent increase from the previous year. Additionally, Company Income Tax from manufacturers rose by nearly 33 percent to N881.29 billion. Kupoluyi argued that these figures reinforce the sector’s vital role in industrial development. However, he cautioned that without targeted fiscal interventions and a reduction in production costs, the government risks stifling the very industry that is sustaining its tax base.

Critical Funding Gaps in Essential Ministries

The chamber expressed deep concern over disclosures made during recent budget defense sessions at the National Assembly. Many Ministries, Departments, and Agencies revealed they have received only a small fraction of their authorized capital funding for the current fiscal cycle. According to Kupoluyi, when contractors are not paid for their work due to these funding delays, jobs are threatened and the operational capacity of private firms is crippled. The LCCI is calling for an entirely new template for budget releases to ensure that once a project is approved, the capital required for its completion is made available in a timely and predictable manner.