THE manufacturing sector’s contribution to tax revenue collections in Nigeria maintained an upward trend, as it recorded a total of N1.17 trillion in Value Added Tax (VAT) in 2025, representing a 45.61 percent increase over the N803.53 billion recorded in 2024.

The sector’s Company Income Tax (CIT) contribution also rose to N881.29 billion, marking a 32.83 percent increase from N663.46 billion recorded in 2024.

Disclosing this in a State of the Nation’s address, delivered by its president, Engineer Leye Kupoluyi, the Lagos Chamber of Commerce and Industry (LCCI) described the year-on-year growth as a reinforcement of the industry’s expanding role in generating government revenue and enhancing the nation’s industrial development.

It, therefore, called on the Federal Government to invest more in productive infrastructure and economic policies through job creation, lower production costs and fiscal interventions to enable the sector to maximise its potential.

The chamber expressed concerns over what it described as historical weaknesses in Nigeria’s budget execution capacity, delays in fund releases, bureaucratic bottlenecks, and inefficiencies.

Describing the development as some of the critical challenges stifling economic growth, the Chamber noted that the rollover of ₦7.71 trillion in unimplemented 2025 capital projects calls for improved fiscal management, effective public-private partnerships (PPPs), and stronger collaboration between the executive and legislature to ensure timely project completion.

“We have followed budget defence sessions at the National Assembly and have noted concerning moments when Ministries, Departments, and Agencies (MDAs) disclosed that they received only a tiny fraction of the funds approved for capital projects in the 2025 fiscal year.

“When contractors are owed large sums of capital, their operations are stifled, and jobs within their domains are threatened. The government must create a new template for capital budget releases to ensure capital projects are adequately funded,” the foremost advocacy body for organised private sector argued.

On the Oil & Gas Outlook, the Chamber described the unveiling of the Nigerian Upstream Petroleum Regulatory Commission as an ambitious reform agenda to boost crude oil production, restore investor confidence, and position Nigeria as a competitive global energy destination.

It is, however, believed that for the country to really maximise the huge opportunities of the price of crude oil in the international market, it must boost its local production and refining capacities and position itself as an alternative oil supply hub in Africa.

The chamber also noted that while the debt-to-GDP ratio remains within the thresholds, he however tasked the federal government to consider more realistic measures such as the debt-to-service and debt-to-revenue ratios, which he noted had reached ‘uncomfortable levels.

It described the nation’s total public debt, which stood at N159.28 trillion, therefore reflecting a year-on-year increase of N24.98 trillion, or 18.6 percent, from N134.30 trillion recorded in December 2024, as reflecting a combination of new borrowings to finance fiscal gaps and the valuation effects of exchange rate depreciation on external debt obligations.

The advocacy group, therefore, warned that while the anticipated oil windfall in 2026 offers a positive buffer, its impact may be limited if not strategically managed as past episodes of oil revenue have not always translated into sustained fiscal improvements.

On developments in the nation’s telecoms sector, it described the rising incidents of vandalism infrastructure in the sector, across Nigeria, as a threat to economic productivity, investor confidence, national security and digital inclusion.

“Telecommunications infrastructure remains critical to modern economic activity, supporting banking services, e-commerce, education, healthcare, logistics, public administration, and millions of small businesses.

“Persistent attacks on fiber-optic cables, base stations, power systems, and related assets disrupt essential services, increase service providers’ operating costs, and reduce service quality for consumers and businesses,” LCCI added.

The Chamber, therefore, urged governments at all levels to treat telecommunications infrastructure as critical national assets that require stronger protection by providing enhanced security surveillance, stricter enforcement of laws against vandalism, faster prosecution of offenders, and closer collaboration between security agencies, regulators, communities, and network operators.

It also called for improved right-of-way management, better coordination during road construction and urban works, and stronger public awareness campaigns on the economic damage caused by vandalism.

On power supply and business competitiveness, the Chamber noted that the poor state of electricity supply in the country remains one of the greatest impediments to business operations, since frequent outages, high generator costs, and unreliable distribution networks have continued to cripple productivity and raise the cost of doing business.

It, therefore, urged the government to embark on urgent reforms in the power sector, which should include accelerated investment in renewable energy, improved grid management, and private-sector participation to unlock the greater efficiency and reliability.

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