* Raise concerns over widening fiscal deficits, low capital expenditure implementation
Ndubuisi Francis in Abuja
The Capital Market Academics of Nigeria (CMAN) has called for urgent policy intervention to reverse the declining credit to the nation’s private sector, arguing that sustainable economic growth ultimately depends on productive private sector investment and not solely on financial sector expansion.
The Nigeria’s foremost financial markets think tank, with an assemblage of researchers, lecturers, economists and professionals from universities, research institutes, regulatory agencies and private
sector organisations, also raised concerns over widening fiscal deficits, and low implementation of capital expenditure.
Addressing a press conference in Abuja Monday, the President of CMAN, Prof. Uche Uwaleke, applauded economic reforms embarked upon by the President Bola Tinubu administration, which previous governments could not execute.
He cited the removal of fuel subsidy, noting that although it has been painful, it addressed a policy that had become fiscally unsustainable, encouraged inefficiency and diverted scarce public resources away from productive investments.
“Similarly, the unification of the foreign exchange market corrected long-standing distortions associated with multiple exchange rates, improved transparency and enhanced investors’ confidence. Although the adjustment initially imposed significant costs on businesses and consumers, it is our considered view that a market-reflective exchange rate remains more sustainable than maintaining an artificial exchange rate through continuous intervention.
“We also commend the ongoing fiscal and tax reforms aimed at broadening the tax base, simplifying tax administration and creating a more efficient, equitable and growth-oriented fiscal framework capable of supporting long-term economic development.
“In particular, CMAN commends the Honourable Minister of Finance and Coordinating Minister for the Economy, Professor Taiwo Oyedele, for his exemplary leadership as Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, as well as the dedicated members of the committee, whose painstaking work culminated in the enactment of the Nigerian Tax Acts 2025.
“We believe that these landmark tax laws provide a more coherent, transparent and investment-friendly tax regime that, if effectively implemented, will strengthen domestic revenue mobilisation, improve the ease of doing business and enhance Nigeria’s competitiveness as an investment destination,” he said.
The CMAN President observed that the macroeconomic improvements have equally been reflected in the Nigerian capital market, with investor confidence considerably strengthened, foreign portfolio participation soaring and market performance remaining impressive.
He said: “These achievements deserve commendation. They demonstrate that sound macroeconomic policies,
when consistently implemented, are capable of restoring investor confidence and improving market performance.
“However, we are persuaded that economic success should not be measured solely by rising stock prices, improving reserves or favourable sovereign ratings. The true measure of economic reform is whether it
improves the welfare of ordinary citizens.
“Indeed, as observed by both the World Bank and the International Monetary Fund, many of the positive macroeconomic gains have yet to translate into improved living conditions for households and businesses.
“This remains Nigeria’s most pressing economic challenge. Despite stronger banks and improving financial market indicators, access to affordable credit remains extremely limited, particularly for small and medium enterprises that constitute the backbone of employment generation.”
The CMAN President added that lending rates remain prohibitively high, making expansion and job creation increasingly difficult.
According to him, recent reports also indicated that although Nigerian banks are becoming larger following recapitalisation,
credit to the private sector as a percentage of GDP continues to decline.
This trend, he explained, deserves urgent policy attention as sustainable economic growth ultimately depends on productive private sector investment rather than financial sector expansion alone.
Uwaleke equally pointed out that another issue that deserves urgent national attention was the growing public debt burden, citing available official figures which put Nigeria’s public debt in excess of N159 trillion at the end of 2025.
Pointing out that while borrowing is not inherently undesirable, the pace of debt accumulation raises legitimate concerns
regarding debt sustainability, debt service obligations and the fiscal space available for developmental spending.
“CMAN is particularly concerned about widening fiscal deficits and the relatively low implementation of capital expenditure despite Nigeria’s enormous infrastructure deficit.
“Roads, railways, ports, electricity, housing, irrigation systems and digital infrastructure remain inadequate for a country aspiring to achieve a $1 trillion economy by 2030,” he said.
