GDP rebasing should not be avenue for more debts, LCCI cautions FG

The Lagos Chamber of Commerce and Industry (LCCI) yesterday warned that the proposed rebasing of the country’s Gross Domestic Product (GDP) should not be an excuse to take more loans. LCCI President, Mr. Gabriel Idahosa spoke in Lagos at the 2025 Economic Review and Outlook Conference organised by the chamber. This is just as the […]

The Lagos Chamber of Commerce and Industry (LCCI) yesterday warned that the proposed rebasing of the country’s Gross Domestic Product (GDP) should not be an excuse to take more loans.

LCCI President, Mr. Gabriel Idahosa spoke in Lagos at the 2025 Economic Review and Outlook Conference organised by the chamber.

This is just as the Chairman of the Presidential Committee on Fiscal Policies and Tax Reforms, Mr. Taiwo Oyedele disclosed that the committee is making progress with engagement with critical stakeholders, saying the Bills would be ready before the end of first quarter 2025.

Daily Trust reports that the National Bureau of Statistics (NBS) has concluded plans to unveil the rebased GDP figures by the end of January.

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Idahosa at the conference attended by economic experts including Dr. Biodun Adedipe, urged the government to remain focused on driving through the economic reforms towards achieving set goals.

“The monetary authorities should not get comfortable with rebased inflation figures if they come out lower than what we currently deal with at 34.6% as of November 2024.

“To the fiscal authorities, the rebased figures for our GDP (likely to go higher than current figures) should not give room to more debts supported by the argument of a comfortable debt-to-GDP ratio,” he stated.

The president stated that the projected budget deficit of N11.3 trillion (3.4% of GDP) in the 2025 budget of N49 trillion “Will rely on domestic and external borrowing, raising concerns about debt sustainability.”

He said, “The government’s target is to achieve a GDP growth rate of 4.2% in 2025 while reducing inflation to 15%. These projections hinge on successful policy implementation and global economic stability.

“As of 2023, Nigeria’s tax-to-GDP ratio was 10.6%. This is lower than the average of 15.6% for African countries in 2023; Nigeria’s tax-to-GDP ratio has historically been low and is one of the lowest in the world.”

In the state of the economy outlook for 2025, foremost economic analyst Adedipe predicted a GDP growth rate of 4.12 amidst ongoing macroeconomic reforms.

He further predicted that inflation “Is expected to reach an inflection point in the early part of 2025, causing a potential downward trajectory of MPR.” 

In his virtual presentation, Oyedele also highlighted the benefits of GDP rebasing, saying it would have an impact on the country’s projected tax to GDP ratio and measurement of per capita income, and improve investors’ perception of the country.

He assured that the tax reform bills should become laws before the end of first quarter 2025.

He said this would enable the committee to give a three-month notice before the implementation by the end of second quarter. 

Oyedele stated that for the first time in his adult life, “We have this comprehensive reforms where we are focusing on businesses, how to make them more competitive, how to bring down their cost, how do you bring down their tax rates, how do we ensure that small businesses can thrive without the excess burdens they have been dealing with for how long, how do we protect the vulnerable people, the low income earners.”