Fiscal discipline and a structured strategy to shrink the informal sector has been described as keys to achieving sustainable economic growth in Nigeria.
Chief Consultant of B. Adedipe Associates Limited, Dr Biodun Adedipe, stated this at the 2025 Mid-Year Economic Outlook Review organised by the Lagos Chamber of Commerce and Industry’s (LCCI), in Lagos.
He warned that without discipline in public spending, efforts at macroeconomic stability and inclusive growth would remain undermined.
Adedipe emphasised the need for comprehensive review of government expenditure and tightening fiscal operations to ensure efficient resource allocation.
According to him, Nigeria must embrace expenditure management and set measurable targets to gradually reduce the informal sector’s contribution to GDP over the next three decades, drawing from the experience of high-performing East Asian economies.
Adedipe painted an optimistic outlook for Nigeria’s non-oil export sector in 2025 and beyond.
Also speaking, Chairman of the Presidential Fiscal policy and Tax Reforms Committee, Taiwo Oyedele, said that the nation’s tax reform is expected to facilitate economic growth, revenue mobilisation and share prosperity.
According to him, the tax reforms would help to improve tax to Gross Domestic Products (GDP) ratio, non oil revenue performance, efficiency and optimisation.
He said apart from addressing distortion and revenue harmonisation, the tax reforms will go a long way to improve Nigeria’s credit rating, lower deficit and cost debt.
Oyedele added that the implementation of new tax reform would reduce business risk, lower tax burden and bring in competitive tax regime in the system.
In his opening remarks, President of LCCI, Mr. Gabriel Idahosa, called on the federal government to prioritise infrastructure financing and reduce the cost of governance, among other things, to sustain the economy on the path of growth.
While reviewing the economy in the first half of the year, he emphasized the need to appreciate the progress made and the structural issues hindering inclusive growth.
“As we enter the second half of 2025, we must approach the remainder of the year with renewed resolve, strategic focus, and collaborative spirit.
“We must move from policy rhetoric to implementation, from isolated efforts to integrated strategies, and from short-term fixes to long-term planning,” he stated.
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