Nasarawa State Governor Abdullahi Sule has applauded President Bola Ahmed Tinubu’s economic reforms, which he said have been instrumental to the development of the state.
Addressing reporters in Lafia, the state capital, Sule said the reforms have laid a solid foundation for economic growth in Nasarawa and across the country.
“Without the reforms of Mr. President, most of the development we are seeing today, especially here in Nasarawa State, would not have happened.
“The reforms have created the economic boom we are witnessing. That is the reason we have been able to achieve what we have achieved.
“We are forever grateful to Mr. President for these reforms, and we are also grateful to the people of Nigeria for accepting them. That is why we are where we are today,” he said.
The governor said the visible outcomes across sectors were clear indications that the reforms were yielding positive results and setting the stage for further development.
Sule said his administration came on board with a clear vision to industrialise the state.
“To industrialise Nasarawa State, you must identify areas of competitive advantage. Industries require raw materials.
“Our first competitive advantage is mining, which is why we are known as the ‘State of Solid Minerals’. The second is agriculture. That is why we have invested heavily in that sector,” he said.
The governor explained that industrialisation cannot be sustained without a skilled workforce, hence the emphasis on vocational and technical education.
“That is why we are putting so much effort into vocational and technical education. We have established technical schools that are recognised by the National Board for Technical Education (NBTE).
“The technical college in Lafia is now being used as a national model for training. This helps us to create employment, empower our youth and prepare them for industry,” he said
Sule also listed the state’s proximity to the Federal Capital Territory (FCT) and the prevailing peace in the state as major attractions for investors.
“Our closeness to the FCT is a huge advantage, which we are leveraging to create the right atmosphere for industrialisation.
“The peace we have been able to sustain in Nasarawa State is another key factor attracting big investors,” he said.
On the wave of political defections and concerns about Nigeria drifting towards a one-party state, Sule dismissed such fears.
“One-party system is not good for democracy, and I do not believe any party, including the APC, has any interest in pursuing that,” he said.
The governor assured the people of Nasarawa State that he would continue to do his best in service to the people.
“It is the people of Nasarawa State who drafted me to be governor; If they draft me for any other position, and I believe I can do the job, I will do it,” Sule added.
Policy experts, government officials and stakeholders have called for deliberate interventions to revive the economy of Northern Nigeria, emphasising that its future depends on amendments in governance, education, and inclusivity.
They spoke at the 2025 Arewa Stars Awards on December 20 at the Tahir Guest Palace, Kano. Organized by Arewa Agenda—under Image Merchants Promotion Limited (IMPR), PRNigeria and Economic Confidential publishers—ASA recognizes young achievers in northern states.
Delivering the keynote address, Executive Director, Civil Society Legislative Advocacy Centre, Awwal Musa Rafsanjani, stressed the need for reforms in governance, education, and youth and women empowerment to reposition the region economically.
He said strengthening justice, prioritising education, and promoting transparency and accountability in leadership were critical to changing negative narratives about Northern Nigeria and achieving sustainable development.
Highlighting the importance of formulating policies that enable women to thrive, Rafsanjani noted that inclusive development remained central to long-term economic stability across the 19 states.
Kano Commissioner for Information, Comrade Ibrahim Abdullahi Waiya, commended Arewa Agenda for acknowledging the efforts of young people who are positively impacting society.
The official described the initiative as timely and pledged the support of the Kano State Government for future editions, to ensure that the annual awards become more impactful and far-reaching.
IMPR CEO, Yushau Shuaib, called ASA “a vital tool for inspiration” in a region facing significant development hurdles. He added that the recognition was not only about celebrating success but also encouraging youths to contribute meaningfully to the North’s progress.
Arewa Stars Awards convener, Dahiru Mohammed Lawal, said the platform was built on the values of service, innovation, and leadership. Hundreds of nominations are received annually, while winners are selected by a competent jury to maintain credibility.
The 2025 edition honored Rukayya Khalid (Innovator of the Year) for pioneering electric tricycle manufacturing; Abdulhaleem Ringim (Governance and Public Policy) for contributions to economic policy initiatives; and Nafisa Abdullahi Aminu (Teen Star) for academic performance in London.
Maimuna Musa Agaka for Academic Excellence; Tijjani Gandu for Politics; Hidaya Mahmud for Poetry; Aisha Buhari for Catering; Nana Sule for Publication; Yahuza Bawage for Journalism; Ameer Lukman Haruna for Tourism; and Bayero Yayandy for Advocacy.
Others: Fareed Ibrahim for Humanitarian Service; Najib Shehu for Sports; Nasiba Babale for Arts and Culture; Ishaq Alhassan Qauran Mata Jnr for Activism; Yusuf Hassan for Health; and Ibrahim El-Caleel for Social Media Influence.
Honorary awards were presented to Governor Uba Sani (Kaduna), Governor Abba Kabir Yusuf (Kano), Jibrin Baba Ndace (DG, Voice of Nigeria), and Zubaida Umar Abubakar (DG, National Emergency Management Agency).
‘Our govt’s policies meant to build global competitiveness’
Sweeping reforms are meant to equip Nigerian youths with the right skills, opportunities and institutional supports for them to thrive in a rapidly changing global economy, President Bola Ahmed Tinubu told the Duke of Edinburgh, Prince Edward, yesterday.
The Prince, who chairs the Duke of Edinburgh’s International Award Foundation, was at the State House in Abuja to brief the President on the foundation’s activities taking place in Lagos.
In statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the President described youths as the heart of Nigeria’s development agenda and central to the nation’s economic transformation.
“We will be participating in the G-20 this week. It is the third time Africa is hosting the G-20. And the central issue is about our youth. We need to strengthen the economy for our youths,” Onanuga quoted the President as saying.
The President said his administration’s reforms, including education financing, digital infrastructure expansion and skills development, were targeted at enabling young Nigerians to compete globally.
The statement reads: “We need to strengthen the economy for our youths. The reforms are about growth and prosperity for the nation.
“They take into full consideration our demography and the need for skills development. We are emulating best practices to explore opportunities in several areas.”
Highlighting the Nigerian Education Loan Fund (NEFUND), President Tinubu stressed that no student admitted into tertiary institutions should drop out due to financial constraints.
“Our goal is to use education to drive down poverty,” he said, adding that widespread infrastructural upgrades, such as the nationwide laying of fibre-optic cables, would expand access to technology, deepen inclusion and accelerate the integration of young people into the digital economy.
The President said his administration embarked on reforms across various sectors to strengthen synergy among institutions while sustaining long-term growth.
President Tinubu noted that improving security remained a top priority of the current government, praising humanitarian organisations for supporting victims of terrorism and internal displacement.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Nigeria’s youthful population, with a median age of 17, continued to shape the structure and focus of government reforms, aimed at expanding skills development and job creation.
Prince Edward lauded the Tinubu administration’s reforms, saying they have earned positive global attention.
He said the Lagos award ceremony would celebrate the achievements of 320 young Nigerians who have demonstrated passion, resilience, and commitment to personal development.
The Duke also praised Edun for his “brilliant contributions” to the planning of the event and for consistently championing the role of young people in Nigeria’s reform process.
Prince Edward was accompanied by the British High Commissioner in Nigeria, Sir Richard Montgomery; his Private Secretary, Alex Potts; the Secretary-General of the Duke of Edinburgh’s International Award Foundation, Martin Houghton-Brown; and International Trustee for Africa, Mr. Muhoho Kenyatta.
The Duke of Edinburgh’s International Award is a global non-formal education framework that equips young people with skills, resilience and a sense of service through schools, youth organisations and community groups worldwide.
President Bola Ahmed Tinubu on Monday said his administration’s sweeping economic reforms are deliberately designed to secure the future of youths by equipping them with the skills, opportunities, and institutional support needed to thrive in a rapidly changing global economy.
The President made the remarks while receiving the Duke of Edinburgh, Prince Edward, at the State House in Abuja.
Prince Edward, who chairs the Duke of Edinburgh’s International Award Foundation, was in Nigeria to brief the President on the organisation’s forthcoming award ceremony scheduled to hold in Lagos.
According to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, President Tinubu described youths as the heart of Nigeria’s development agenda and central to the nation’s economic transformation.
“We will be participating in the G-20 this week. It is the third time Africa is hosting the G-20. And the central issue is about our youth. We need to strengthen the economy for our youths”, President Tinubu said.
He said reforms initiated by his administration, including education financing, digital infrastructure expansion, and skills development programmes, are targeted at enabling young Nigerians to compete globally.
“We need to strengthen the economy for our youths. The reforms are about growth and prosperity for the nation. They take into full consideration our demography and the need for skills development. We are emulating best practices to explore opportunities in several areas”, the President said.
Highlighting the government’s new Education Loan Fund, Tinubu stressed that no student admitted into tertiary institutions should drop out due to financial constraints.
“Our goal is to use education to drive down poverty,” he said.
The President added that widespread infrastructural upgrades, such as the nationwide laying of fibre-optic cables, would expand access to technology, deepen inclusion and accelerate the integration of young people into the digital economy.
He said reforms across various sectors are also aimed at strengthening synergy among institutions while sustaining long-term growth.
Tinubu further noted that improving security remains a top priority, commending humanitarian organisations for supporting victims of terrorism and internal displacement.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Nigeria’s youthful population, with a median age of 17, continues to shape the structure and focus of government reforms, which aim to expand skills development and job creation.
Prince Edward lauded the Tinubu administration’s reforms, saying they have earned positive global attention.
He said the Lagos award ceremony will celebrate the achievements of 320 young Nigerians who have demonstrated passion, resilience, and commitment to personal development.
He also praised the Minister of Finance for his “brilliant contributions” to the planning of the event and for consistently championing the role of young people in Nigeria’s reform process.
The Duke was accompanied by the British High Commissioner to Nigeria, Sir Richard Montgomery; his Private Secretary, Alex Potts; Secretary General of the Duke of Edinburgh’s International Award Foundation, Martin Houghton-Brown; and International Trustee for Africa, Mr. Muhoho Kenyatta.
The Duke of Edinburgh’s International Award is a global non-formal education framework that equips young people with skills, resilience and a sense of service through schools, youth organisations and community groups worldwide.
Ibrahim Apekhade Yusuf, in this report attempts a post mortem of the activities of some of the key ministries, department and agencies of government in the last two years with focus on their modest achievements, challenges, opportunities, prospects and projections ahead
There are many ministries that are major players in the major commanding heights of the economy today in terms of the quantum and sheer size of their portfolios. For a sovereign nation like Nigeria bookmakers easily tip finance, works and infrastructure, oil and gas exploration, mining, etc. as major contributors to the economy.
Indeed, the received wisdom out there is that finance plays a major role in any endeavour or pursuit whether within the households, small businesses, corporate entities and wait for this, even as far as conjugal relationship goes; those who know say there is no romance without finance in a manner of speaking!
The above wisecrack speaks to the premium position and importance of the Finance Ministry and all the various MDAs under it have continued to take pride of place in the economic calculus of the country till date.
Interestingly, Mr. Wale Edun who is the Minister of Finance and Coordinating Minister of the Economy had his job cut out for him from the get-go: to ensure that the economy is not just out of danger but is back on an even keel with more positives than negatives.
In the view of some economic watchers, there has been a significant improvement in the economy, drawing from the governance template anchored on prudent financial management by President Tinubu’s team.
The devil as they say is in the details:
For instance, the last 24 months, the real GDP grew 3.0% (YoY) in Q1 2024 to 3.19 %, 3.46% and 3.84% respectively in Q2, Q3 and Q4 just as the actual GDP growth rate improved to 3.4% in 2024 from 2.74% in 2023 while the actual nominal GDP for Year 2024 was N274.67 trillion surpassing the projected target of N236.3 trillion by 16.3%.
In order to maximise tax revenues exceptional non-oil revenue performance one of the revenue generating agencies, the Federal Inland Revenue Service (FIRS) collected a record N21.66 trillion in 2024, achieving 111.6% of its revenue target, with non-oil taxes exceeding targets by 28% and contributing 73.4% of total revenue.
Also, the Nigeria customs Service recorded an all-time high revenue collection of N6.1 trillion in 2024, surpassing the set target by N1.03 trillion—a 20.2% increase above the target. This represents a 90.4% increase from the N3.2 trillion collected in 2023, marking the highest Year-on-Year growth in recent history. Additionally, in October 2024, the Service achieved the highest monthly revenue collection ever at N603.17 billion. These gains were realised despite granting NN1.68 trillion in concessions to stimulate economic growth, a significant reduction from the N3.96 trillion in 2023, achieved through enhanced monitoring and reforms.
NCS commenced pilot testing of its indigenously developed customs clearance platform, ‘B’Odogwu’, under the Trade Modernisation Project. The platform processed transactions amounting to N31 billion within its first deployment phase at PTML Command.
Recovered about N56 billion of aggregated debt owed to the Federation in collaboration with FIRS through the Project Lighthouse Programme.
The total value of waivers approved for the Agriculture, Solid Minerals and Manufacturing sectors was N369billion in 2024. While the number of companies that benefited in the year under review was 457. The beneficiaries are located across the nation.
Through its strategic partnerships with the Nigerian Content Development and Monitoring Board (NCDMB) and Saudi Exim, the Bank was able to raise an additional US$40 million in lines of credit (LOCs) and Intervention Funds to provide exporters with cheaper longer tenured financing.
In the intervening period, actual debt to GDP ratio of 55% was below DMO fiscal anchor of 60% for 2024 which is still within the World Bank and IMF 55% and 70% recommended thresholds, just as debt service to revenue ratio of 60.55% was lower than the 75% target for 2024, with 14.5% points variance. This was within the limit set for Year 2024.
In terms of fiscal policy, the federal government discourage importation of non-essential products through policy measures including luxury taxes, higher tariffs and higher processing fees, just as it incentivise international brands with tax credits, rebates and other fiscal incentives to establish manufacturing plants in Nigeria both for exports and to meet the needs of the large population of consumers in Nigeria and the wider
FIRS collected a record N21.66 trillion in 2024, achieving 111.6% of its revenue target, with non-oil taxes exceeding targets by 28% and contributing 73.4% of total revenue.
Significant over performance in MDA Independent Revenues achieving a record performance of N4.146 trillion in 2024, achieving 155% of its target, which is a very important source of funding for the FGN budget. The Nigeria Customs Service recorded an all-time high revenue collection of N6.1 trillion in 2024, surpassing the set target by N1.03 trillion—a 20.2% increase above the target. This represents a 90.4% increase from the N3.2 trillion collected in 2023, marking the highest Year-on-Year growth in recent history. Additionally, in October 2024, the Service achieved the highest monthly revenue collection ever at N603.17 billion.
Besides, riding on the back of a managed-induced float system, which allowed the central bank to play the role of a protective big brother by unduly influencing the exchange rate to keep the naira artificially strong, the local currency faced immediate volatility when it switched to a free float.
Right from the COVID-19 pandemic days, when the urgency to restrict dollar supply due to gravely low inflows from oil exports triggered a squeeze in the market, pressure from the IMF and the World Bank on Nigeria to devalue the naira grew.
Multilateral lenders have always believed that a weaker currency is fundamental to attracting foreign capital to the economy, as international investors find it market-friendly. The quick succession of reforms implemented in the first eight months of Mr Tinubu’s presidency loosened naira controls, helping close the gap between the official and street exchange rates. That wide disparity in the two rates had left the naira vulnerable to arbitrage activities in the past.
Thus the nation’s net foreign exchange reserves (NFER) climbed to $23.1 billion in December 2024, marking their highest level in three years. The increase reflects the impact of recent CBN measures to strengthen the country’s external buffers.
The reserves “stood at $23.11 billion, the highest level in over three years, a marked increase from $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021,” the CBN said in a statement in April.
Gross external reserves, which, unlike NFER, do not factor in forward contracts, currency swaps, and other short-term obligations, increased to $40.2 billion from $33.2 billion in 2023.
“The distortions in the market have been largely removed. Second, the pressure from the importation of petroleum products has also been largely reduced,” Muda Yusuf, founder and chief executive of the Centre for Promotion of Private Enterprise.
“Those things will boost the outlook for the exchange rate in a sustainable manner.”
The central bank attributed the rise to improved foreign investor sentiments, increased oil receipts, and tighter foreign exchange management.
It expects the figures to rise further through mid-2025, with rising non-oil inflows and stabilisation of the exchange rate driving the increase.
Nigeria’s foreign reserve went from $3.7 billion under Buhari to approximately $40 billion today because Nigeria has stopped importing petrol and many other consumer products.
That is also why our debt profile has reduced from the $108.2 billion he inherited from the Buhari administration on May 29, 2023, to $94.2 billion today.
Nigeria recorded a record-breaking trade surplus of 14.31 billion in 2024, the absolute highest in our history because we no longer import many items we once imported.
Total exports were $38.93 billion, while imports were $24.62 billion.
Nigeria’s quarterly GDP growth rate has stayed within a 2.5 to 3.8 per cent range year on year since the second quarter of 2023. The peak growth level attained in the last quarter of 2024 also marks the most robust improvement on record since fourth quarter 2024.
Annual growth for 2024 stood at 3.4 per cent, well behind the 6 per cent the government set for itself. That compares to the 2.7 per cent reported for 2023.
Nigeria has one of the lowest tax-to-GDP ratios in the world. In 2023, the government disclosed plans to increase it from 10.8 per cent to 18 per cent by 2027 as it introduced rigorous reforms to overhaul its obsolete tax laws.
The strategies include imposing a 70 per cent windfall tax on banks’ foreign exchange revaluation gains, centralising tax collection, raising value-added tax (VAT) to 12.5 per cent from 7.5 per cent, and attracting fresh investments to oil and gas via tax incentives.
As far as fiscal policies are concerned, the defining moment of Mr Tinubu’s half-term performance is perhaps the Senate’s approval of four tax reform bills on 7 May. The key highlights include the amendments to corporate income tax, personal income tax, VAT, and the Stamp Duties Act.
There has also been a push to rein in the hydra-headed monster-inflation, which the federal government recognises as a threat to good living, and is therefore taking strategic measures to bring it down to single digit.
According to National Bureau of Statistics (NBS) data, the inflation rate in Nigeria rose to 24.23 per cent in March from 23.18 per cent in February 2025.
Sharing insights on how the federal government is poised to curb inflation, Finance Minister and Coordinating Minister for the Economy, Olawale Edun along with the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, while speaking at a joint press conference at the end of the 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank Group, in Washington DC, recently assured that this would be addressed frontally.
Edun put the federal government’s economic growth target at seven per cent, an ambitious projection which has the potential to substantially reduce the current level of poverty and improve the standard of living of Nigerians significantly.
“That’s a commitment and target, and the way to get it is by focusing on agriculture, increasing productivity, as well as making food more available to the people,” the Minister said.
Edun said the government was also focused on “building more infrastructure, particularly in the digital economy area that will benefit young people, and supporting businesses through improved access to finance.”
He said President Bola Tinubu’s desire was that the poor and the most vulnerable were not left behind in the benefits from the ongoing economic reforms.
His words: “We have a social and direct benefit transfer programme. It started off and it wasn’t robust enough or up to standard, so we stopped it.
“We are back to the drawing board, and now have a standard that requires payments going out to people on the social register, and allow each person to be identified biometrically, through a National Identity Number. Each person has a digital methodology for reaching them.”
Twenty million Nigerians are currently on social register, with one million monthly additions which is expected to rise to three million monthly in due course.
Addressing the benefits of the spring meetings, Edu said the just concluded one came at a time of global uncertainty, structural shifts, rising trade and geopolitical tensions, elevated interest rates and high debt levels of which many of the heavily impacted countries are in Sub Saharan Africa.
He said although tariff hikes were impacting real wages and disruption of global supply chains disproportionately affecting Emerging Market Developing Economies (EMD’s) in view of the limited diversification of their economies and greater dependence on imported goods, domestic policy re-strategising should be the first line of defence
“Fiscal policies should safeguard sustainability and rebuild buffers; remain investment friendly to create job opportunities and enhance resilient growth.
“Policy calibration should be toward further restoring confidence and stability, reducing imbalances and improving productivity to drive sustainable growth. Regional and cross regional economic integration and cooperation is critical,” he said.
He explained that in line with the Renewed Hope Agenda of President Tinubu, Nigeria was pursuing growth-oriented policies through various initiatives in agriculture and food security, road and rail infrastructure, social security as well as strong reforms in both the upstream and downstream sectors of the oil and gas arena.
“The delegation had bilateral meetings with the President of the WBG and IMF where the leadership expressed strong support for the Nigerian government’s commitment to the ongoing reforms and encouraged Nigeria to remain focused and avoid complacency in undertaking structural (regulatory) reforms,” Edun said.
During the meetings, high-level discussions took place between the Minister, the CBN Governor, and the Director of International Economic Relations, with representatives from the U.S. State Department.
“Agriculture was identified as another strategic sector for collaboration, with the U.S. expressing interest in supporting Nigeria’s efforts to boost productivity, enhance value chains and strengthen food security through investment and technical cooperation.”
Edun said Nigeria’s reform efforts were strongly appreciated by the international community as the most credible way to economic prosperity.
The US State Department described Nigeria’s reforms as an economic miracle.
He said: “There is strong global appetite for investments in Nigeria and IFC’s continuing investment in Nigeria will be a strong signal for many more to come for the Nigerian private sector.
“Fiscal consolidation remains a critical element of the Nigerian policy menu at this time. Nigeria agrees on the overarching theme of the 2025 WBG/IMF Spring Meeting that job creation is the sure pathway to poverty reduction and improved livelihood.”
He described the market-determined foreign exchange regime put in place by the government as another key pillar of the reforms.
“We have embraced market-driven pricing for the naira, significantly enhancing transparency and restoring investor confidence.
“Again, thanks to disciplined reforms and policy clarity, the naira has stabilised at a more sustainable level against the U.S. dollar.
“The once-wide gap between the official and parallel market rates has all but disappeared, a first in Nigeria’s recent history, and speculative arbitrage has all but vanished.
“This renewed stability has restored confidence and spurred autonomous inflows through formal channels. These inflows are diversifying our foreign exchange sources beyond oil,” he said.
Cardoso said that the apex bank has strengthened its monetary buffers and positioned Nigeria to better withstand external shocks.
“Indeed, the macroeconomic stability we are beginning to see today would not have been possible without these decisive actions. Nigeria’s external buffers have also strengthened considerably.
“Our foreign reserves now exceed $38 billion, providing nearly 10 months of import cover. This robust buffer enables us to better withstand external shocks – whether from declining oil prices or global financial turbulence – thereby safeguarding our economy,” he said.
The CBN governor said Nigeria recorded a balance of payments surplus of $6.83 billion last year, the strongest in many years, driven by rising exports and renewed capital inflows.
“At the same time, we are enhancing the strength of our financial sector. The banking sector recapitalisation is well underway, with strong momentum and stakeholder alignment, and will ensure that Nigerian banks are fully equipped to support the real economy with greater scale, stability and capacity.
“At these spring meetings, our development partners expressed their confidence in Nigeria’s trajectory. Feedback from global investors and the Nigerian diaspora has likewise been overwhelmingly positive, reflecting growing alignment with our economic direction.
“Nigeria is increasingly recognised as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms.
“These achievements, while encouraging, only strengthen our resolve to press forward. We will not be complacent. Instead, we will redouble our efforts to ensure these positive trends are sustained,” he stated.
“We recognise that inflation remains the most disruptive force to the economic welfare of Nigerians. Our policy stance is firmly focused on bringing inflation down to single digit in a sustainable manner over the medium term,” Cardoso said.
He said the aim was to “restore price stability, protect household purchasing power, and lay the foundation for long-term investment.”
The CBN boss said the recent Fitch Ratings upgrade, which applauded the exchange rate unification to reduce arbitrage in the markets, the introduction of electronic FX matching platform and a new FX code to enhance transparency and efficiency in the market as well as deployment of monetary policy tightening to keep inflation on check, showed that the reforms were succeeding.
“The reforms have reduced distortions stemming from previous unconventional monetary and exchange rate policies, resulting in the return of sizable inflows to the official foreign exchange (FX) market,” Fitch Ratings said in a rating action commentary this month.
“Nevertheless, we see significant short-term challenges, notably, inflation is high and the FX market has yet to stabilise, and the durability of the commitment to reform is to be tested.”
The credit rating agency revised Nigeria’s long-term foreign-currency issuer default rating to ‘B-‘ after upgrading it to ‘B’ in April, moving its outlook to positive from stable.
Significant milestones under Umahi
It is also instructive to note that the Minister of Works, Engr. David Umahi, hit the ground running as soon as he took office. Described as Mr. Project in some quarters, Engineer Umahi has literally been on a workaholic mode since he mounted the saddle as the Works Minister two years ago.
Independent checks by The Nation revealed that the minister undertook major turnkey projects in the last 18 months some of which are near completion and ready for commissioning.
Highlights of the 2024 deliverables showed that the Ministry was able to achieve construction of 38.70km of the road as at the end of 2024, dualisation and construction of Kano-Kwanar Danja-Hadejia road in Kano/Jigawa States, section ii. Kano-tsalle. The Ministry was able to achieve construction of 17.80km of the Road as at the end of 2024.
The completion of the project is expected to boost socio-economic activities within the South-East (and by extension South-South) region of Nigeria. The project has achieved 30.8% completion of permanent works as at the end of year 2024.
Create a truly nationwide highway system, rehabilitate and expand existing Federal Roads, accelerate construction of new roads, create innovative funding mechanisms for road construction, including accessing capital markets and PPP.
True to his promise, two years down the line, Umahi has been at the vanguard of those leading efforts to change the nation’s landscape.
According to him, this is self-evident in the quantum of expenditure undertaken by the ministry in the last 24 months.
Specifically, the Tinubu administration has so far invested over N2.2 trillion on critical road infrastructure since taking office barely two years ago.
Umahi explained that the funds include those expended on the four legacy projects as well as 260 completed palliative road projects across the six geo-political zones of the country.
He made this statement while presenting the Tinubu administration’s scorecard on road infrastructure during a ministerial press briefing in Abuja on Friday.
The minister stated that the President is set to commission some of the completed road projects as part of the activities marking his second year in office on May 29, 2025.
He maintained that 440 road projects approved under the Tinubu administration are ongoing nationwide. He said, “In just two years, President Bola Tinubu’s administration has completed 260 palliative road projects nationwide, costing N208 billion.”
“Beyond this,” he added, “29 major infrastructure projects totaling over N2 trillion have been undertaken, demonstrating an unparalleled dedication to revitalizing our national infrastructure.”
“The sheer number of ongoing road projects — 440 across the country — is a testament to Mr. President’s vision and unwavering resolve to connect our communities and boost economic activities.”
Umahi went further to liken President Bola Tinubu to the biblical “Joseph the dreamer,” who not only envisioned the future but courageously planned and worked towards it, citing several achievements as evidence.
He explained that when the President tasked him with ensuring the realisation of the Lagos-Calabar Coastal Road project, he drew inspiration from the Eko Atlantic project, which became one of the legacies of the Lagos State Governor Bola Tinubu’s administration (1999–2007).
He also praised the President’s vision that inspired the award and the commencement of the Sokoto-Badagry Highway, a project conceptualised over 47 years ago during the Shehu Shagari-led administration.
Umahi said, “Mr. President is a man of courage. I call him Joseph the dreamer, and God has helped him turn his dreams into reality. I commend him very highly.”
He added, “The good news is the Sokoto-Badagry Highway. This was a dream of the Shagari administration about 47 years ago. It was initially planned as Badagry-Sokoto, but a very detribalised President directed us to change it to Sokoto-Badagry.”
Umahi explained that only a person with great courage and the power of dreams could undertake such projects.
Umahi affirmed that the administration’s legacy projects aimed at improving the nation’s road infrastructure across the six geo-political zones are on track.
Echoing similar sentiments, Francis Eze, a public affairs commentator, “Thanks to Umahi, the whole nation is lit up with a large flame of construction activities going on across the country as contractors work day and night to deliver on time on the multiple road projects that have been awarded to them by the Federal Government of Nigeria through the Federal Ministry of Works.
“In one dizzy and exciting feat that ministry under Engr. David Umahi is constructing over 2000 roads simultaneously across the country, highlighting it with the biggest contract ever to be awarded in this country, the Lagos to Calabar Coastal Road which is traversing some states in the South and that is soon to be followed by the Lagos to Sokoto Coastal Road that will pass through some states in the Northern parts of Nigeria. “Some other roads presently under construction includes Ado – Ijan Road and Ado – Ikere – Akure Road in Ekiti State, Bende – Ohafia – Arochukwu Road in Abia State, Lokoja – Okene Road in Kogi State, Abuja – Kaduna -Zaria – Kano Road, Makurdi – Otukpo -Obollo-Afor – 9th Mile Road, Enugu -Abakaliki Road amongst others.”
In a related development, President Tinubu on Saturday, commissioned 11 completed road projects across Nigeria, including the first completed section of the Lagos-Calabar Coastal Highway.
The commissioning, which was both physical and hybrid, followed presidential approval secured by the Umahi, to officially open a 30-kilometre stretch of the Lagos-Calabar Coastal Road to traffic.
The event took place at Kilometre 8 of the project corridor, near Jakande Estate in Lagos State.
A statement by Umahi’s aide, Orji Uchenna, said the inaugurated segment, part of Phase I, Section I, runs from Ahmadu Bello Way on Victoria Island to Eleko Village in the Lekki Peninsula and is being executed by Hi-tech Construction Company.
The Lagos-Calabar Coastal Highway is one of the flagship Renewed Hope Legacy Projects under Tinubu’s administration.
Spanning 700 kilometres and covering nine coastal states, the highway is expected to transform Nigeria’s transport landscape, enhance economic connectivity, and open up tourism and investment opportunities along the country’s southern corridor.
In addition to the coastal road, Tinubu will commission 10 other completed road and bridge projects in Lagos, Rivers, Ogun, Oyo, Cross River, Ebonyi and Enugu states.
The projects include, Lagos–Ibadan Expressway (Shagamu–Ibadan section) – 166.8km, executed by RCC Nigeria Ltd, the East-West Road (Eleme Junction to Ahoada)– 94km, handled by Setraco Nigeria Ltd, Alesi–Ugep Road in Cross River State – 67.1km, by Sermatech Nigeria Ltd and the Ikorodu–Shagamu Road in Lagos/Ogun States – 30.4km, by Arab Contractor.
Others are Enugu–Lokpanta Expressway (First 16km) – 61km under rehabilitation, New Artisan Market Bridge, Enugu– 75m dual-span bridge, by CCECC, New Bridge at Akpoha, Ebonyi State – 75m single-span bridge, by CCECC, Port Harcourt–Onne Junction (East-West Road) – First 15km, by RCC and Lagos–Badagry Expressway (Agbara–Seme Border) – 48.6km, by CGC Nigeria Ltd
Also commissioned were additional infrastructure projects under the Renewed Hope agenda, including the rehabilitation of the Lagos–Badagry Expressway and a section of the Enugu–Port Harcourt Expressway.
Tinubu also flagged off new projects such as the Ibadan–Ife–Ilesha–Akure–Benin highway, the Nembe–Brass road, the reconstruction of parts of the Enugu–Onitsha expressway, and the Abakpa flyover in Enugu State.
The Works Minister described the making of the Lagos-Calabar Coastal Highway as a Renewed Hope signature project and a signpost of holistic road infrastructure transformation that will be a reference point and a flagship of excellence in the continent of Africa.
He stated, “If Lagos-Calabar Coastal Highway could be this beautiful, how will the streets of heaven be? This underscores the strength of the road architecture and the beauty of its aesthetics.
The economic reforms implemented by President Bola Ahmed Tinubu have been praised for being on the right track despite the temporary hardships they have caused.
According to Dr. Opialu Opialu, who spoke at a one-day intellectual discourse on the state of the economy and the Renewed Hope Agenda, the reforms are necessary for Nigeria’s development and will ultimately lead to prosperity.
The event, which was organised by the Beyond Boundaries Legacy Leadership Initiative (BBLLI) in collaboration with the Civic Centre on Economic Reforms, Policies, and Planning, attractedexperts and stakeholders to discuss the theme “Between Austerity and Prosperity: Nigeria Yesterday, Today, and Tomorrow.”
Opialu, who assessed the economic reforms of President Tinubu, highlighted the country’s past, present, and future, noting that Nigeria was once a rich nation but became poor due to mismanagement and lack of planning.
However, with President Tinubu’s Renewed Hope Agenda, he said the country is taking bold steps to introduce reforms and recover from its past mistakes.
Opialu said President Tinubu’s administration has implemented several key reforms, including the removal of subsidies on premium motor spirit, exchange rate unification, and a review of the Electricity Act.
These reforms, according to him, have been complemented by public sector reforms, a review of solid mineral policies, and the introduction of a student loan scheme.
While these reforms have caused short-term pains, such as inflation, a reduction in disposable income, and a high cost of living, Opialu noted that the gains will far outweigh the pains in the long run.
Opialu also highlighted the medium-term effects of the policies, which include a reduction in the pump price of premium motor spirit, the introduction of the Presidential Initiative on Compressed Natural Gas, and an increase in foreign reserves.
Additionally, the reforms have attracted over $30 billion in foreign direct investment and have led to improved security and a drastic reduction in the spate of insecurity.
Opialu concluded that the economic reforms of President Tinubu are timely and welcome and that the government should do more to educate Nigerians on the reforms and their effects. This will help to prepare the minds of the masses for the need to make temporary sacrifices for the sake of long-term prosperity.
“The economic reforms of President Bola Ahmed Tinubu are on the right trajectory notwithstanding the temporary hardship,” he said. “It is a price we all have to accept for the Nigeria of our dreams. The most equipped generation to carry this cross is ours and the time to do it is now.
“It is my view that the various reforms are timely and welcome and that the Government should do more through the appropriate agency to educate Nigerians on the reforms, its effects, both the good and the not too palatable ones, so as to prepare the minds of the masses to the need to fast before feasting”.
Prominent industrialist and chairman of BUA Group, Alhaji Abdulsamad Rabiu, has called on Nigerians to exercise patience as the reforms implemented by President Bola Ahmed Tinubu’s administration begin to take effect.
Speaking to journalists on Friday at the Lagos residence of the president, Rabiu acknowledged the hardships caused by the reforms but emphasized their necessity for long-term economic stability.
“The economy, I think, is going okay, although we all know that some of the reforms undertaken by His Excellency are still biting.
“As far as the business community is concerned, these reforms were necessary. Yes, some of them are quite painful, but we needed these reforms, especially the foreign exchange unification”, Rabiu stated.
Reflecting on the foreign exchange market, Rabiu highlighted the significant progress made since the reforms were introduced.
“At one point, the exchange rate was N500 officially and N800 on the parallel market, which was not acceptable. After unification, the rate initially spiked to almost N2000 but has now stabilized around N1,500 to N1,550. I am confident we will see further improvements as the market finds its balance,” he explained.
Rabiu commended the Tinubu administration’s efforts to stabilize the economy and improve infrastructure, citing ongoing road construction projects as a testament to the government’s commitment.
“Mr. President is doing a lot, and the government is working hard to ensure stability within the economy and other sectors. We just need to give them time. These reforms take time, and I believe things will definitely get better,” he said.
The business magnate also joined President Tinubu for the Juma’at service at the Alausa Central Mosque in Ikeja and accompanied him to his late mother’s family residence.
Rabiu described the experience as emotional and reflective, noting the prayers offered for Nigeria’s prosperity and unity.
“I came to see His Excellency to congratulate him on a successful year. I had the honor to escort him to the mosque, where we prayed for Nigeria and for every Nigerian. We later visited his late mother’s residence, and it was a deeply moving experience,” he recounted.
Rabiu expressed optimism about the future, urging Nigerians to rally behind the government’s vision for economic recovery and national development.
“This government has only been in power for 18 months. They have another 24 months or so, and I believe we need to give them time. Things will definitely get better,” he concluded.
At crossroads of reform, Nigeria grapples with electricity theft, arbitrage
The ruling class: Symbols of sacrifice or shadows of greed?
In the neon-lit recesses of a mini complex, where the scent of pomade and the gentle hum of blow dryers once filled the air, Francisca Pajok sits quietly in the dimness of her salon.
At 34, she has learnt to twist adversity into a facade of survival. Yet her hands are idle. They aren’t braiding the hair of a client. Instead, they rest, tightly clasped, as though cradling the invisible weight of her sorrow.
Her eyes, etched with the frustration of an idle month, catch the flicker of light from her neighbour’s generator. The electricity supply to their shops was cut off, after a routine check revealed that the metres had been tampered with—and a bypass installed.
What was once a simple thread to the lifeblood of the powergrid had become a secret artery through which Pajok and her neighbours siphoned the energy they could no longer afford to buy.
The electricity bill had soared by over 200 percent, forcing Pajok and others in her complex to turn to this quiet crime. “We had no choice but to do something smart,” she says. “Before, N5,000 worth of units would last us long enough. Now, it burns out in days. We had to survive.”
Survival, however, came at a steep cost. Pajok’s “smart” choice denied Ikeja Electric and the Power Holding Company of Nigeria (PHCN) the revenue they depend on. What she saw as a small, justified theft rippled into larger consequences. Every unmeasured kilowatt-hour drained the company of the funds it needed to maintain and improve the grid. The government, too, lost the taxes embedded in the energy tariffs, taxes that should have flowed into public infrastructure and social services. With every bypass, the nation became poorer, its systems more fragile.
Yet, Pajok sees no wrong in what she has done. Like millions of others, she blames the government for her miseries while quietly absolving herself of responsibility. Her business, though profitable, is unregistered, untaxed. She contributes nothing to the nation’s purse, but she speaks loudly about what the government owes her.
“When people steal electricity, they deny the government the taxes that come with it. This affects reinvestment into public services and further worsens the state of our power grid,” explains Abiodun Fagbohun, electricity investor and prepaid metre dealer. According to him, this act of tampering disrupts not just the flow of electricity but also the delicate balance of economic sustainability.
He says, “It’s a vicious cycle. People bypass because they feel overcharged, but the bypass only leads to poorer services.” In this cycle, Nigeria’s development has been strangled by years of unpaid dues, illegal bypasses, and a populace accustomed to services without the corresponding responsibility.
The Silent Sabotage of Arbitrage: Mohammed’s Fall from Grace
In Agege, where hard currencies whisper the weight of fortune and its decline, Hussein Mohammed watches his empire crumble. He was once a master of the currency game, thriving on the differences between the official and parallel exchange rates. The disparity fed his business, swelling his coffers as he navigated the shadows of Nigeria’s monetary system, arbitraging naira against the dollar with the finesse of a seasoned gambler.
But the tides turned with the floatation of the naira, a bold move by President Bola Tinubu’s administration aimed at bringing transparency and stability to the currency markets. What once was a chasm between the official and parallel markets—a playground for people like Mohammed—shrank to a margin so thin it suffocated his trade. What was once N457 to the dollar in the official market, now fluctuates between N1,630 in the official market and N1,660 in the parallel market offering little more than a sliver of advantage.
“It’s impossible to make any profit now,” Mohammed bemoans. “It used to be instant wealth, but now the difference is nothing.”
The death of his business is not just a personal tragedy; it is a window into a larger economic sickness. For years, currency arbitrage undermined Nigeria’s industrial base. Instead of investing in production and manufacturing, the nation’s resources were drained into speculative currency trading. The wealth Mohammed and his peers amassed came at the cost of real economic growth. Factories closed, supply chains crumbled, and inflation soared, fueled by a cycle of currency devaluation that hollowed out the middle class’s purchasing power.
In the wake of President Bola Tinubu’s reforms, Mohammed and others like him are casualties of a necessary war—a battle to restore sanity to Nigeria’s economy. Yet, as with Pajok, he blames the government for his travails, failing to see the long-term benefits of policies designed to shift Nigeria from a speculative economy to one rooted in real growth.
The Tax Dodger’s Creed
While Pajok stole light and Mohammed traded in shadows, Yele Odugbemi found his rebellion in the silent art of evasion. A retiree turned entrepreneur, Odugbemi runs a small ice factory and a fish farm on the outskirts of Lagos. His profits are steady, his business thriving. Yet, in his world, taxes are not a burden he feels obliged to bear.
“I settle the local government boys with crates of eggs and fingerlings,” he says, his voice tinged with a kind of pride. “Why should I pay taxes when I can take care of them myself?”
Odugbemi’s logic is simple—why pay into a system when that system, in his view, offers nothing in return? It is a sentiment shared by many Nigerians who, like Odugbemi, believe that the government exists to serve them, not the other way around. But in this quiet rebellion lies a deeper problem. The more citizens evade taxes, the more the government is starved of the revenue it needs to function. Every tax dodged is a road left unpaved, a school unfunded, a hospital without medicine.
Odugbemi, like Pajok and Mohammed, sees his actions as justified, even smart. But the cumulative effect of millions of Nigerians avoiding their civic duties is a nation crippled by its own people. The roads that lead to his fish farm are crumbling, the power lines that should supply his ice factory are unreliable. Yet, he cannot see the irony in his complaints.
Entitlement and the Collapse of Governance
The stories of Pajok, Mohammed, and Odugbemi are not isolated. They are threads in a larger tapestry of entitlement that runs through the heart of Nigerian society. It is a sense of deserving without giving, a belief that the nation’s wealth is theirs to take without the corresponding duty to sustain it.
This entitlement mentality is, perhaps, Nigeria’s greatest challenge. It is the belief that government services—electricity, water, good roads—should be available to all, free of charge, regardless of the cost. It is the refusal to acknowledge that these services come at a price, a price that must be paid by every citizen through taxes, through honesty, through sacrifice.
No one can pretend we didn’t see this coming. The signs have been there, obvious as the noonday sun, looming for decades. Many saw it unfold but preferred to shrug it off, imagining that the ship of state was still on course, even as it drifted towards the gorge.
But the worst is here, with us, in real time. The storm we ignored now rages, and no one can say they weren’t warned. We felt the dread in the air. It was palpable, like a suffocating fog clinging to every breath. Even in the so-called “good old days,” there was a foreboding sense that all was not well—that something, someday, had to give.
The decades passed, and with each, we reminisced about an era when life was supposedly better. But the truth is that the good old days have always been a decade away, never in the present.
The Cycle of Evasion: Kicking the Can Down the Road
Each successive government in Nigeria has been guilty of evasion—ducking the hard decisions that could have set the country on a better path. No administration wanted to be the one to impose hardship on the people, lest it lose its grip on public favor. Instead, they kicked the can down the road, leaving the heavy lifting to the next. The result is what we face today: an economy battered by years of neglect and mismanagement, a people teetering on the edge of despair.
There is a bitter reality we must confront: Nigeria is not a wealthy nation. This is not a revelation, but a fact we have refused to accept, to our detriment. Former Director-General of the Budget Office, Ben Akabueze, laid it bare when he compared Nigeria’s meagre budget to those of smaller African nations. South Africa, with a fraction of Nigeria’s population, operates with a budget four times larger.
Worse still, more than 75% of Nigeria’s budget has been swallowed up by recurrent expenditures—salaries and running costs—since 2011. We are bleeding resources that should have been invested in infrastructure and development, feeding a bloated bureaucracy that gives little in return, noted Akabueze.
Illusion of Wealth: A Myth Born in the Flames of Independence
Nigeria’s image as a land of abundance was forged in the fires of independence. Leaders like Nnamdi Azikiwe and General Yakubu Gowon fanned the flames of optimism, promising that Nigeria would rise as an African superpower. The myth of abundance took hold in the public imagination, fueled by the oil boom of the 1970s.
Gowon’s infamous declaration, “Money is not Nigeria’s problem, but how to spend it,” became the mantra of an era drunk on fantasies of wealth. But what was deemed wealth was nothing more than fleeting fortune, a mirage in the desert. The oil that flowed freely, that should have been the nation’s lifeblood, has become the very chain that binds it.
Today, Nigeria is shackled to a dream long past, a skeleton of its former self. The riches we thought would last forever have evaporated, leaving behind a nation that can barely stand under the weight of its own expectations.
Dollars in the Shadows: Betting Against the Naira
As the oil flowed, Nigerians began to hedge their bets—not just on the markets, but against their own country. The locust years of currency arbitrage saw both the wealthy and the struggling middle class speculating on the naira. Nigerians opened domiciliary accounts, converting their earnings into dollars to protect themselves from the inevitable collapse of their national currency. Whenever the naira lost value, these speculators cheered. It was a tragic irony: a people rooting for the decline of their homeland.
State governors, entrusted with public funds, played the same game. Diverting federal allocations and security funds, they bought dollars at subsidised rates from the Central Bank of Nigeria, then sold them at outrageous profits on the parallel market. It was a frenzy that left the economy bleeding.
Economic analyst Tope Fasua sums it up best: When citizens lose faith in their own currency, all is lost. The belief that the naira would fall became a self-fulfilling prophecy. And while the wealthy lined their pockets, the poor were left with nothing but inflation, devaluation, and the slow suffocation of their livelihoods.
Fasua’s analysis pierces through the haze of rhetoric. The man saving $100 a month, seeking refuge in foreign currency, was no different from the politician with $100 million stashed in offshore accounts. Both played the same game, both profited from the naira’s fall—but where one thrived, millions fell deeper into poverty. “In time,” Fasua warns, “the man with the $100 million cannot step out of the house because there are zombies waiting to eat him raw.” The metaphor was stark, but it captured the essence of a nation devouring itself from within.
The warnings came in trickles and vignettes of the worst that could happen crept through the crevices of political and socioeconomic failures but Nigerians thumped each other on the back bellowing through hi-fives and chanting: “What’s the worst that could happen?”
President Bola Tinubu, in his sweeping reforms, is attempting to break this cycle. The removal of the fuel subsidy and the floatation of the naira are not just economic policies—they are attempts to reshape the Nigerian psyche, to teach a nation that nothing in life is free. But for these reforms to succeed, the government must lead by example.
The Ruling Class: Symbols of Sacrifice or Shadows of Greed?
But if Tinubu’s administration is to ask the people to tighten their belts, it must first cut the fat from its own, argue pundits. The outrageously high salaries and allowances of public officials are a stain on any call for sacrifice, according to Cynthia Olubae, a retired school administrator. Indeed, how can the government ask a citizen like Pajok to pay for her electricity when legislators are pocketing millions in allowances? How can it expect Mohammed to accept the naira’s floatation when the ruling class lives in a bubble of privilege, immune to the economic pain they preach about?
For Nigeria to heal, its leaders must first show that they too are willing to bleed.
In July 2024, the House of Representatives resolved to assist the federal government with N648 million for six months by cutting down their salaries by 50 per cent to support food sufficiency and address the high cost of food in the country.
But the Nigeria Labour Congress, NLC, and civil society organisations, CSOs, such as ActionAid, Yiaga Africa, in a swift reaction, said the problem was not with the salaries of members of the House of Representatives, but their allowances, suggesting the bogus allowances be slashed by half to make meaningful impact in their support efforts.
The lawmakers also begged Nigerians to exercise more patience with President Bola Tinubu’s administration in addressing the challenges and hardships faced by citizens.
The House further mandated its committees on appropriation, humanitarian affairs, finance and budget to ensure compliance.
The resolutions followed the adoption of a motion moved on the floor of the House by Ibrahim Isiaka (APC- Ogun State) at plenary in Abuja.
Moving the motion, Isiaka said though Nigerians had the constitutional right to peaceful assembly and protest to address their grievances, the House presented with a humble plea for reason, understanding, and unity in the face of adversity.
The remuneration of politicians has long been a source of public outrage, a glaring testament to the profligacy that has crippled the nation. The salaries and allowances of lawmakers at both the federal and state levels are astronomical, especially when compared to the minimum wage, which barely sustains a living.
In 2024, Nigeria spent N724 billion on its National Assembly and 36 state assemblies, a staggering sum that could have been redirected towards healthcare, education, and infrastructure. And while the Senate President and his colleagues luxuriate in opulence, the citizens they claim to represent languish in poverty.
The solution is clear: Nigeria must reduce the cost of governance.
Nigeria’s Poor, Yet Potentially-Rich State
Nigeria is poor. This truth stings, but it must be faced head-on. Yet, while Nigeria may be poor in current financial terms, it remains rich in potential. It has been this contradiction—rich in promise, poor in performance—that has defined the nation since independence.
In 2021, Nigeria’s tax-to-GDP ratio stood at a meager 6.7%, far below the African average of 15.6%. Even today, as that number inches upward, the gap remains wide. Nigeria is a nation where tax evasion is rampant, even among those who complain the loudest about the government’s failings. This imbalance leaves Nigeria with little choice but to borrow or print money, fueling inflation and deepening the economic crisis.
In 2022, the tax-to-GDP ratio in the European Union stood at 41.2%, with France (48.0%), Belgium (45.6%), and Austria (43.6%) recording the highest shares. If you earned €60,000 in these countries, your tax burden would be €28,800 in France, €27,360 in Belgium, and €26,160 in Austria. In stark contrast, Nigeria’s tax-to-GDP ratio in 2021 was just 6.7%, far below the African average of 15.6%. Though it has risen to 10.6%, the gap remains wide.
This imbalance is worsened by widespread tax evasion, even by those who criticize the government most vocally, as exposed in the Pandora Papers. Nigeria’s oil revenues also pale in comparison to other nations. Saudi Arabia generates $350 billion annually from oil for its 35 million citizens, equating to $10,000 per person. Nigeria, with 220 million people, earns just $36 billion, or $150 per person. Qatar, with a population of 2.6 million, makes $68 billion—over twice Nigeria’s revenue.
Thus, with low tax collection and insufficient oil revenue, Nigeria is left borrowing or printing money, which only fuels inflation.
With such abysmal GDP—barely 10% of it comes from taxes, one of the lowest figures globally. Yet, we expect our government to cradle us like the governments of Western countries, where taxes are the lifeblood of their economies. This expectation, this entitlement, is our Achilles’ heel. Like a child expecting a feast, we do not realise the kitchen is empty.
Despite this, Nigerians cling to the dream of abundance—a dream that has been out of reach for decades. The citizens expect the government to provide the kind of support seen in Western nations, where high taxes fund robust public services. But Nigeria’s tax revenues are among the lowest in the world, and the government cannot give what it does not have.
Myth of the African Giant: A Hollow Title in the Face of Reality
Nigeria has long been touted as the “Giant of Africa,” a title meant to convey its vast potential, its economic might, and the resilience of its people. But for many Nigerians, particularly the youth, this title rings hollow. The reality on the ground does not match the lofty image of a giant striding confidently across the African continent.
Nigerians like Bodunde Ariyo, who runs a small grocery in Aguda, are living the harsh reality of an economy in decline. Inflation has soared, and with it, the cost of living. Ariyo’s business, like many others, is on the brink of collapse. “Things have gotten really tough,” she admits, her voice laced with the exhaustion of someone who has fought too long against impossible odds.
President Tinubu envisions a thriving SME sector that forms the backbone of Nigeria’s economic future, fostering sustainable development and reducing dependency on oil.
The president has severally highlighted his plans to assist MSMEs to unleash the potential of Nigeria’s entrepreneurial spirit, enabling local businesses to compete on the global stage and contribute meaningfully to the nation’s prosperity.
The future of Nigeria lies not in the grandiose dreams of yesteryear but in the hands of small and medium-sized enterprises (SMEs) like Ariyo’s. SMEs contribute nearly half of Nigeria’s GDP, employ 87.9% of its workforce, and form the backbone of the economy. If Nigeria is to rise again, it will be through the resilience and innovation of its people—through the grocery sellers, the artisans, the tech entrepreneurs who refuse to give up.
Turning the Corner: A Glimmer of Hope in the Face of Reforms
Since May 2023, Nigeria has embarked on a series of long-overdue reforms aimed at stabilizing the economy. The Central Bank of Nigeria has unified exchange rates, fostered a market-determined official rate, and phased out the gasoline subsidy, which had drained over N8.6 trillion from the country’s coffers between 2019 and 2022. These reforms, though painful, were necessary.
Inflation has risen to 33.7%, squeezing the purchasing power of citizens and increasing the cost of living. But these are the short-term costs of the reforms. The long-term goal is to stabilize the economy, create jobs, and foster sustainable growth. To cushion the impact on the poor, the government has launched a cash transfer program, providing N75,000 to 15 million households over three months.
Still, these efforts alone will not be enough. Nigeria needs to accelerate its development progress, not just to stabilize its economy but to address its growing poverty crisis. According to a recent World Bank report, more than 109 million Nigerians now live below the poverty line. This is one of the largest concentrations of poor people in the world.
Embracing New Ways to Move Forward
President Tinubu’s vision of a prosperous Nigeria includes improving mass transportation. To this end, his administration has laid the groundwork for an expansive rail network in cities like Lagos, Abuja, and Port Harcourt. The move towards cleaner energy through CNG buses is also a crucial part of this plan.
Recently, the Federal Government waived Value Added Tax (VAT) and Customs Duties on gas and gas equipment to ensure the success of the CNG initiative.
According to President Tinubu the Compressed Natural Gas Initiative (CNG) that will power the transportation economy will save Nigeria over N2 trillion being used to import Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) into Nigeria. He disclosed that this will free up resources for more investment in healthcare and education.
In December 2023, the Ministry of Finance (MoF) released a Circular on fiscal incentives for the gas sector. This Circular is in line with the Presidential Gas for Growth Initiative which aims to improve the investment climate in Nigeria and to increase the
utilisation and supply of gas in the domestic market.
Against the backdrop of these efforts, the President has appealed to the populace that the measures he is taking are necessary and they should bear with him because they need time to come into fruition. One of them is the CNG programme which is aimed at improving mass transportation. His concept of mass transit is a clear departure from those of IBB and Obasanjo regimes where J5 buses and Keke were the signposts of mass transportation. How many people can these help in a population of more than 200 million? All that has changed to the use of trains and construction of rail lines in Lagos, Abuja, Port Harcourt and elsewhere. The idea should be replicated in other Nigerian cities not necessarily in form of trains but in other capacities that would help transport people en masse.
As Lagos State governor, he had conceptualised the red line and blue line for Lagos but Ambode abandoned it and should not have. He also created special routes for BRT buses; an idea he borrowed from developed countries like the UK and France. He has always had a vision for perfecting a seamless and cheaper run of urban transportation.
There is so much left to be done as Nigeria’s population outgrows its infrastructure. A nation of over 200 million people needs more than token gestures; it requires real, large-scale solutions. The railways and buses that form the backbone of Tinubu’s transportation vision must expand to every corner of the country.
A New Dawn of Responsibility
Yet, beyond the financial numbers, political strategies and socioeconomic upheavals lay a deeper truth. Nigeria’s crisis is not merely economic; it is moral. The wealth funneled into the pockets of the few is often pilfered at the expense of the many, and no number of palliatives or incentives could erase that fundamental injustice. True democracy, after all, does not arise from the ashes of free markets; it must be cultivated in the soil of shared sacrifice.
In the end, Nigeria’s path to salvation lies not in the speculative games of its past nor in the gilded chambers of its legislature. It lies in the hands of its people—those who are willing to stop betting against their own country and start building it anew. For a nation that gambles on its downfall will only ever find ruin. But a nation that stakes its future on the well-being of all its citizens will rise, not through wealth but through a shared belief in something far greater: a future built on hope, sacrifice, and the courage to change.
At the moment, Nigeria stands at the threshold of a new era, one where entitlement must give way to responsibility, where the theft of electricity and the dodging of taxes can no longer be excused as survival strategies.
President Tinubu’s policies, though painful, are the bitter medicine the nation needs perhaps. But for these reforms to take root, both the government and the people must shed the weight of old habits.
The salaries and outrageous benefits earned by public officers must be pruned drastically to reflect the challenges and reality of the country they serve.
The light that Pajok steals is not just electricity—it is the future of the nation. The currency that Mohammed traded in shadows is not just money—it is the potential for growth that was squandered. The taxes Odugbemi evades are not just funds—they are the schools, the roads, the hospitals that could lift the nation from its knees.
Nigeria’s future will not be built on entitlement, but on the hard work of every citizen, paying their dues, owning their responsibilities. Only then can the nation rise from the shadows of its past into the light of a new dawn.
Ongoing economic reforms initiated by the Federal Government are yielding positive results, Minister of Finance and Coordinating Minister of the Economy Wale Edun said yesterday.
They will, in no distant time, return the economy to the path of sustainable growth and drive down inflation drastically, the minister, who spoke on television programme monitored from Lagos, said.
Edun listed the milestone achievements triggered by the various reforms as including the gradual return of domestic and foreign investors’ confidence to the economy.
He said the government has paid N7.3 trillion overdraft from the Central Bank of Nigeria (CBN) under the “Ways and Means” policy in line with government’s fiscal discipline priorities.
The minister also disclosed that $2.25 billion low interest facility from the World Bank will be drawn-down in the next two weeks even as $7 billion foreign capital inflows are expected into the oil and gas sector of the economy.
On declining inflation and naira stability, Edun added that more foreign capitals have made inroads to the economy to boost FX liquidity.
He said: “I would say Mr. President Bola Tinubu has in his first year achieved relative stability of the economy. He has put it on a track of growth. And he has put together a package of intervention measures in agriculture in particular, which needs to be redoubled.
“They need to be re-emphasised and they need to be further extended in order to have the full effect. So, on the one hand, the macroeconomic measures which everybody knows were taken to save the economy, basically and bring it back from the edge of financial bankruptcy and in the foreign exchange markets from chaos, and illiquid.”
He, however, admitted that the initial measures taken to stabilise the economy has led to an inflationary spike in terms of the cost of fuel and secondly, in terms of the exchange rate, and also in terms of interest rates.
According to him, the CBN’s measures against inflation have started bearing fruit at a time when interest rates are high, which normally means that businesses find it hard to borrow and invest.
He said: “The economy is growing. People are finding sources of funding sources of equity, including government, putting in its own share of private public sector, funding for infrastructure in particular, and that is helping to create jobs and grow the economy.
“But on the other hand, inflation is high at 33.69 per cent and food inflation at 40.5 per cent, which is worrisome, but the fact is that inflation is coming down month by month, for it’s down to about 2.3 per cent month-on-month from nearly three per cent.”
On what was done to cushion the initial pains triggered by the reforms, Edun informed that the payment of N75,000 to households through the social intervention programmes.
Expressing confidence on imminent food prices and availability, the minister said: “That is the commitment that is the focus of government. We particularly have an eye as a coordinating minister. I have a group that’s looking at the presidential panel on social investment programmes.
“Not only have we put in place a very robust and transparent system for paying people directly under the existing programme, we are also now sitting together and looking at food availability and nutrition. So, we have a group that sits every week and focuses on providing additional food under these particular circumstances.”
He, however, described food security problem as a global phenomenon, which according to him, faces 30 per cent of the world’s population.
Nigeria, the minister said, “is tackling its own side of the crisis”.
He said the government has improved the investment climate for oil and gas, noting that in the nearest future, the measures put in place in the sector will unlock $7 billion of foreign direct (fdi) investment.
Edun also noted that the investments in agriculture will raise output and drive down food inflation, adding that the removal of subsidy on petrol has rubbed off on the naira-dollar exchange.
Amid the complex economic landscape inherited by President Bola Tinubu’s administration, Nigeria faced a critical juncture, burdened by decades of governmental missteps and inefficiencies. Recognising the urgent need for comprehensive reforms, the administration embarked on a mission to reverse the downward trajectory and revitalise the economy, focusing on fostering growth, attracting investments and ensuring sustainable development. BOLAJI OGUNDELE reports that Nigeria’s economic future now stands at a transformative threshold, awaiting the fruition of these initiatives.
When President Bola Tinubu assumed office on May 29 last year, Nigeria’s economy was at a crossroads, grappling with the consequences of decades of governmental missteps and inefficiencies. Both domestic and international observers agreed on the urgent need for comprehensive reforms. Recognising the gravity of the situation, the new administration swiftly embarked on a mission to reverse the downward trend.
In response, the Tinubu administration has launched an ambitious agenda aimed at revitalising the economy. This multifaceted strategy focuses on fostering growth, attracting investments and ensuring sustainable development for all Nigerians. Central to these efforts is the Federal Ministry of Finance, which plays a crucial role in shaping and implementing the administration’s economic policies. Through various ministries, agencies and departments, the government has begun to deploy a range of structural reforms. These initial steps signal a commitment to addressing the longstanding issues that have hampered Nigeria’s economic potential. As the nation watches closely, the effectiveness of these reforms will be key to determining Nigeria’s economic future and the success of President Tinubu’s vision for a prosperous and stable nation.
Under the leadership of the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, the ministry has been instrumental in driving forward a comprehensive agenda aimed at addressing key challenges facing Nigeria’s economy. From fiscal reforms to investment promotion, the ministry’s initiatives have been central to the government’s broader strategy of achieving economic stability and prosperity for all citizens.
One of the key contributions of the Federal Ministry of Finance has been its focus on fiscal discipline and transparency. By implementing measures to enhance revenue generation, streamline expenditures and improve budgetary management, the ministry has sought to ensure that public finances are managed prudently and effectively. These efforts have been crucial in bolstering investor confidence, enhancing the credibility of Nigeria’s fiscal policies, and creating an enabling environment for sustainable economic growth.
Revamping national revenue base
Presenting his scorecard at the sectoral ministerial update organised by the Federal Ministry of Information and National Orientation, Edun highlighted the substantial improvements in the Federal Government’s revenue due to President Tinubu’s economic reforms. Edun stated, “We met a situation where the government did not have enough money, and the government was not able to pay its way.” “Through implementing technological change and procedures, which refers, not just to the skills of the workforce, but to the political will, we are now in a situation where the revenue of the country has been totally revamped and increased substantially. The government can now pay its way. The government has paid its debt service without resort to ways and means, particularly international debt service,” he said.
He listed the removal of fuel subsidy and reforms in the foreign exchange market as part of the reforms. “These were necessary reforms that have affected the standard of living. But the President was committed to balancing the effect with interventions across sectors. In the first quarter of 2024, GDP growth at 2.98 per cent is an indication that the economy is growing, higher than population growth of 2.4 per cent,” Edun noted.
The minister said that agriculture had the potential to move the economy forward and reduce inflation, while on social intervention, he said that the programme on direct payments to the poor had been restarted as 15 million households have been awarded the payment of N75,000. He said that grants were being pushed out for the support of SMEs under a programme with the Bank of Industry. He said N50,000 has been given to one million nano industries across all 774 council areas of the country
Moreover, the Federal Ministry of Finance has been instrumental in driving initiatives to attract investments and promote economic diversification. By collaborating closely with stakeholders from both the public and private sectors, the ministry has developed policies and programs aimed at unlocking the full potential of key sectors such as agriculture, manufacturing, and services. Through targeted incentives, regulatory reforms, and strategic partnerships, it has sought to create a conducive environment for businesses to thrive and innovate, thereby fostering job creation and economic empowerment.
In addition to the efforts spearheaded by the Federal Ministry of Finance, the Federal Ministry of Budget and Economic Planning, led by its overseeing Minister, Senator Atiku Bagudu, has significantly contributed to President Tinubu’s economic recovery initiatives. Over the past year, Nigeria has witnessed a wave of economic reforms aimed at fostering sustainable growth and prosperity for its citizens. At the heart of these transformative initiatives is the Federal Ministry of Budget and Economic Planning, which plays a crucial role in shaping economic policy and driving strategic planning for the nation’s development.
Under the leadership of President Tinubu, the Federal Ministry of Budget and Economic Planning has played a crucial role in the formulation and implementation of policies that are aimed at revitalizing the economy. Tasked with the responsibility of preparing the national budget, coordinating economic planning, and monitoring fiscal performance, the ministry has been instrumental in laying the groundwork for a sustainable economic growth.
One of the applications of the ministry has been its focus on fiscal discipline and transparency in budgetary processes. By implementing measures to enhance budgetary efficiency, eliminate wastage, and improve revenue collection, it has worked to ensure that public funds are allocated prudently and utilized effectively to support key sectors of the economy.
Importantly, the nation’s budgeting system has been rejuvenated to give proper attention to the government’s priorities. Senator Bagudu, who incidentally is also the Chairman of the Ministerial Sectoral Update Committee, said the 2024 Budget has two remarkable features. “One is the determination, despite our challenges, to restore budget discipline by lowering the fiscal deficit. So, the 2024 budget targeted a reduction in deficits from 6.11 per cent in 2023 to less than four per cent in 2024 and an increase in capital expenditure relative to recurrent spending, which is 39 per cent expenditure, the highest in the country’s history,” he said.
In addition to innovative budgeting, N100 billion fund has been earmarked for Consumer Credit designed to mobilise the manufacturing sector to produce again, which would occur when people can fund their purchases. There is also a mortgage fund to support the creation of mortgages. “So with consumer credit mobilising the manufacturing sector, mortgages re-energising the housing sector, and national agricultural development fund mobilising the agricultural sector, our youth and our productive economy will be mobilised. The N130 billion we provided for conversion, for transition to CNG, which is a cheaper form of energy than petroleum, is designed to restore energy competitiveness so that our manufacturing sector, our transport sector, and our economy will benefit from a cheaper form of energy that will support the economic reform,” Bagudu said.
Moreover, the Federal Ministry of Budget and Economic Planning has been actively involved in the design and implementation of strategic economic development programs aimed at fostering inclusive growth and reducing poverty across the country. Through the development of long-term economic plans, the ministry has set out a roadmap for sustainable development, outlining key priorities and strategies to drive economic diversification, job creation, and infrastructure development.
The ministry has also been at the forefront of efforts to promote public-private partnerships and attract foreign investment to stimulate economic growth and development. By creating an enabling environment for business and investment, the ministry has sought to leverage partnerships with the private sector to drive innovation, create employment opportunities, and enhance competitiveness in key industries.
As the administration enters its second year, the contributions of Budget and Economic Planning will be instrumental in guiding Nigeria towards a future of economic prosperity, stability and resilience. With a steadfast commitment to good governance, fiscal discipline, and strategic planning, the ministry will be supporting President Tinubu’s agenda for economic revitalisation and ensure a brighter future for all Nigerians.
Meanwhile, in a bold move to revitalise and transform the Nigerian economy, President Tinubu has embarked on a path of comprehensive economic reforms aimed at fostering sustainable growth and prosperity for all citizens. At the forefront of these initiatives is the Presidential Committee on Consumer Credit, a pivotal body tasked with driving financial inclusion and empowering individuals through access to credit. Established late last year, the Presidential Committee on Consumer Credit is designed to reshape the financial landscape of Nigeria by promoting responsible lending practices and expanding access to credit for ordinary citizens. Led by a team of experts in finance, economics and consumer protection, the committee has worked tirelessly to develop policies and strategies that support the growth of consumer credit in a transparent and sustainable manner.
A key task of the committee is the introduction of regulations that promote responsible lending practices among financial institutions, ensuring that consumers are not burdened by excessive debt or predatory lending schemes. By setting clear guidelines and standards for the industry, the committee has helped to mitigate the risks associated with consumer credit while fostering a culture of financial prudence among borrowers.
Moreover, the committee has spearheaded initiatives to enhance financial literacy and education among the population, equipping individuals with the knowledge and tools they need to make informed decisions about credit and personal finance. Through workshops, educational campaigns and outreach programs, the committee has empowered Nigerians to take control of their financial futures and make sound financial choices.
In addition to these efforts, the Presidential Committee on Consumer Credit has actively engaged with stakeholders from the public and private sectors to foster collaboration and innovation in the financial industry. By promoting dialogue and cooperation among key players, the committee has created a conducive environment for the growth of consumer credit, driving economic development and prosperity across the nation.
Through its dedication to promoting responsible lending, enhancing financial literacy, and fostering collaboration, the committee has laid a solid foundation for a more inclusive and vibrant financial sector that serves the needs of all Nigerians. One of the first few critical economic and financial related committees established by the President is the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by a renowned accountant and tax expert, Taiwo Oyedele. The administration has embarked on a bold journey of economic revitalisation and reform aimed at fostering sustainable growth and prosperity for its citizens. Central to these transformative efforts is the Presidential Fiscal Policy and Tax Returns initiative, a strategic programme designed to streamline fiscal policies, enhance revenue generation, and promote fiscal sustainability in the country.
One of the key contributions of the initiative has been the implementation of comprehensive fiscal reforms aimed at enhancing revenue mobilisation and efficiency in tax administration. By modernising the tax system, closing loopholes, and combating tax evasion and avoidance, the initiative has sought to ensure that the government has the resources needed to fund critical public services, infrastructure development, and social programs.
While introducing the tasks of the committee after its inauguration last year, the Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, said: “Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth. It should be noted that this committee will not only advise the government on necessary reforms, but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration.”
These efforts by the administration are largely still in the gestation stage. However, some analysts believe that one or two positive indicators have already begun to emerge, suggesting that President Tinubu’s initiatives are yielding early signs of success and are not merely speculative.
