Harsh economy: 2025 may not be different unless —Expert CPPE reels off key business risks

A finance expert and Chief Executive Officer, Wealthgate Advisors, Mr. Adebiyi Adesuyi has said it would be illogical for Nigerians to expect any positive change in the new year if the government failed to change its approach to economic management as the Centre for Promotion of Private Enterprises (CPPE) identified key business risks in the year.

Citing the 2025 Budget to buttress his point, Adesuyi described as ‘fiscal indiscipline’, plans by the federal government to fund the N47.9 trillion budget with a revenue of N34.82 trillion and having N13.08 trillion accessed through loans.

The finance expert also expressed grave concerns on plans by the government to use N15.81 trillion, 45.4 percent of the expected revenue, to service previous debts.

He, therefore, advised Nigerians not to expect improvement, since such ‘fiscal indiscipline’ would further exacerbate the precarious state of the economy.

Speaking on the sectoral allocation of the budget, Adesuyi stated that the sum of N4.06 trillion, earmarked for infrastructure in the budget would be inadequate for the construction and rehabilitation of the nation’s roads.

“N2.48 trillion which is 5.18 percent of the budget is allocated to health; this is far below the 15 percent recommended for African countries by the Abuja Declaration. Again, N3.52 trillion is allocated to education which is 7.53 percent of the budget; it falls short of the minimum target of 15 percent set by UNESCO. It is apparent that investments in the education and health sectors are being underfunded by the government,” he added.

Adesuyi also decried what he described as the extravagantly wasteful lifestyles of the people in government, despite the economic challenges confronting Nigerians.

“The presidency will use N4.6 billion to buy new cars and operational vehicles. What happened to the vehicles the State House is currently using? N22 billion will also be spent on the maintenance of the presidential villa. Is this justifiable? The National Assembly, with 469 legislators, will receive N344 billion while the judiciary will receive N341 billion. The personnel cost in the budget is too high at N14.7 trillion which I consider as one of the factors that hinder the effectiveness and efficiency of the Nigerian government,” he added.

Going forward, the Wealthgate Advisors boss would want the size of government reduced by fast-tracking the implementation of Orosanye Report, which recommended the scrapping or merger of many government agencies.

He also called on the government to correct the two factors, the excessive devaluation of the nation’s currency, and the prohibitive costs of petroleum products.

“The first step is to reduce inflation. The achievement of a single-digit inflation will enable households to have stronger purchasing power, improve consumer spending and increase the demand for goods and services. Manufacturers and farmers will be able to meet their sales targets.

“Secondly, the government must embrace fiscal discipline by cutting down the deficits in the national budget. It is time Nigeria stopped its dependence on the export of one major commodity, crude oil,” he added.

Meanwhile, giving its outlook on economy in the new year, the Centre for Promotion of Private Enterprise (CPPE) has urged businesses to be wary of some risks, likely to negatively impact their bottom lines in the new year.

It advised them to take into cognizance risks constituted by forex volatility, interest rates, inflation, financial and monetary policy, regulatory, cyber security, and insecurity, among others, as they craft their strategies for the new year.

CPPE argued that while exposure to those risks varies across sectors, businesses would need to calibrate their strategies, according to the level of exposure to the risks, to enable them to survive in the year.

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