Experts Push for Stronger Fiscal Transparency and Inclusive Growth in Nigeria
Stakeholders have issued a stark warning that Nigeria's ongoing economic reforms will remain fragile and vulnerable unless the Federal Government takes decisive action to address widening inequality, strengthen fiscal transparency, and improve communication around policy actions. The experts emphasized that while Nigeria is no stranger to reform cycles, many previous efforts have either stalled or inadvertently deepened inequality due to weak implementation, poor incentives, and policy capture by special interests.
Key Voices at the Public-Private Dialogue
The speakers at the event included the Special Adviser to the President on Economic Affairs, Dr Tope Fasua; the Dean of the Faculty of Social Sciences at the University of Lagos, Prof. Adelaide Odukoya; the Director of the Quality Assurance and Servicom Unit at UNILAG, Prof. Olufemi Saibu; the Founder and Chairperson of Women in Successful Careers (WISCAR), Mrs Amina Oyagbola; and the Director-General of the Lagos Chamber of Commerce and Industry, Dr Chinyere Almona. They shared their insights at the Yar'Adua Foundation Public-Private Dialogue on Nigeria's Economic Reforms: Advancing Evidence-Driven Policy Solutions, which was held in Lagos.
Examining Critical Areas of Reform
During the panel sessions, economists, development specialists, and public-sector leaders thoroughly examined key areas of reform. These ranged from inflation targeting and tax changes to social protection programs and agricultural industrialization. On monetary policy, Prof. Saibu observed that although the Central Bank of Nigeria (CBN) has intensified its inflation-targeting efforts, as reflected in recent Monetary Policy Committee decisions, the sustained regime of very high interest rates continues to severely hurt manufacturers and borrowers across the country.
"You want inflation down, but you also need the cost of credit to fall so businesses can breathe," he stated. Prof. Saibu aligned with Dr Fasua's concern over Nigeria's fiscal management structure, particularly the concentration of responsibilities at the federal level despite states receiving substantial allocations and significantly expanding their budgets since 2019. He cited alarming examples of states increasing their budgets by 400 to 1,400 percent, yet offering limited transparency into how these massive funds translate into tangible development outcomes for citizens.
Policy Direction and Achievements Highlighted
According to Dr Tope Fasua, President Bola Tinubu's policy direction aims to pull Nigeria "out of longstanding mediocrity." He highlighted the naira reforms, which he said have boosted foreign reserves to an impressive $51 billion, altered consumption and spending behavior positively, and attracted new investments, including foreign universities now establishing campuses in Lagos. Fasua also pointed to ongoing tax reforms intended to shift the burden to higher-income earners while actively reducing inequality and promoting a more equitable economic landscape.
The consensus among the experts is clear: for Nigeria's economic reforms to achieve lasting success, they must be underpinned by robust fiscal transparency, a commitment to inclusive growth that benefits all segments of society, and effective communication strategies that build public trust and understanding. Without these critical elements, the reforms risk repeating the failures of the past and failing to deliver sustainable prosperity for the nation.
