LAGOS  – The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has identified economic implications of the Federal Government’s decision to extend the implementation of the capital component of the 2023 budget to December, especially amid the Central Bank of Nigeria (CBN)’s current monetary policies aimed at reducing the amount of naira in circulation. 

Dele Oye Esq ,the President of NACCIMA, who commended the decision which demonstrates a commitment to completing vital projects that are crucial for national development, said it must be carefully managed to avoid adverse effects such as inflation and currency devaluation. 

According to him, “The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) commends the Federal Government’s decision to extend the implementation of the capital component of the 2023 budget to December. 

“This move demonstrates a commitment to completing vital projects that are crucial for national development. 

“It is essential to acknowledge that timely completion of infrastructure and other capital projects can catalyze economic growth, enhance productivity, and improve the overall quality of life for Nigerians. 

“However, while the intention behind this extension is commendable, it is imperative to consider the broader economic implications, especially in light of the Central Bank of Nigeria (CBN)’s current monetary policies aimed at reducing the amount of naira in circulation. 

“The decision to inject substantial funds into the economy through capital expenditures must be carefully managed to avoid adverse effects such as inflation and currency devaluation.” 

Identifying the economic implications of the decision, Oye stated, “Pumping too much money into circulation can lead to inflationary pressures. Inflation erodes the purchasing power of consumers, leading to higher costs of goods and services, which can adversely affect both businesses and households. In an economy where the private sector is the primary driver of growth, uncontrolled inflation can disrupt business planning, reduce consumer spending, and ultimately slow down economic progress.