Professor Suleiman Aruwa, a renowned scholar of accounting and finance at Nasarawa State University, marked his 55th birthday on August 24, 2026, by outlining the root causes of Nigeria's economic challenges and proposing practical strategies for recovery and youth financial resilience in an exclusive interview with Legit.ng.
Root Causes of Nigeria's Persistent Economic Downturn
Professor Aruwa explained that Nigeria's economic difficulties are not attributable to a single factor but result from accumulated structural weaknesses. He identified excessive dependence on crude oil for foreign exchange and government revenue as a primary cause, noting that fluctuations in oil prices or production directly pressure government revenues and foreign-exchange earnings.
He also pointed to weak fiscal discipline, characterized by large deficits, inefficient public expenditure, rising debt-service obligations, and inadequate revenue mobilisation. "We therefore need to distinguish between spending more and spending better. The quality and productivity of public expenditure matter as much as its volume," he stated.
The professor further cited Nigeria's production deficit, noting that the country imports too much of what it consumes and exports too little beyond crude oil. This creates persistent demand for foreign exchange and exposes the naira to external shocks. He also highlighted institutional weaknesses and poor public financial management, including leakages, corruption, poor procurement practices, abandoned projects, and weak accountability.
Immediate Steps to Strengthen the Economy
When asked about immediate measures to bolster the economy, Professor Aruwa emphasized that restoring confidence is the top priority while safeguarding productive activity and protecting vulnerable households. He called for strengthened fiscal discipline, ensuring every naira borrowed or spent is linked to a measurable economic or social outcome.
He also advocated for accelerating domestic revenue mobilisation without simply increasing the tax burden on compliant businesses and citizens. The focus, he said, should be on broadening the tax base, reducing leakages, improving administration, and bringing more economic activity into the formal sector. Government should prioritize sectors capable of generating employment and foreign exchange, particularly agriculture, manufacturing, solid minerals, technology, and services.
"Public expenditure should be restructured towards infrastructure, human capital and productive investment rather than low-impact recurrent spending. Most importantly, economic reform must be accompanied by social protection and targeted interventions. Stabilisation should not mean asking the poorest Nigerians to carry the entire cost of adjustment," Professor Aruwa told Legit.ng.
Accountability and Transparency in Financial Institutions
Professor Aruwa stressed that Nigeria's economic struggles often stem less from a shortage of capital than from a deficit of public trust. He noted that people are more willing to pay taxes, invest, save, and comply with regulations when they believe institutions are acting fairly and public resources are properly managed.
"Nigeria should therefore strengthen independent audit, legislative oversight, procurement transparency, beneficial-ownership disclosure, whistleblower protection and public access to fiscal information. We also need to move from input-based accountability to outcome-based accountability," he said. He added that citizens should be able to ask what was achieved with public money, who benefited, and what the measurable impact is.
Financial Resilience Strategies for Young Professionals
Addressing the challenges facing young professionals in an unpredictable economic climate, Professor Aruwa advised that lasting security depends less on salary milestones and more on building a resilient financial foundation. He recommended developing a realistic personal budget and maintaining an emergency fund, while cautioning against allowing lifestyle expenditure to grow automatically with income.
He also advised young professionals to avoid excessive consumer debt, particularly debt used to finance depreciating assets or lifestyles, and to diversify their sources of income. "Professional consulting, entrepreneurship, digital skills, teaching, research and other legitimate income-generating activities can provide additional resilience," he said.
The professor further encouraged investing in skills that remain valuable in a changing economy, especially digital technology, artificial intelligence, data analytics, financial management, communication, and problem-solving. His advice to young professionals was simple: "build skills, control expenditure, avoid unnecessary debt, create multiple income streams and invest for the long term."
Improving Financial Literacy Nationwide
Professor Aruwa argued that financial literacy should become part of Nigeria's development strategy, not something reserved for students of economics or accounting. He proposed introducing practical financial education from secondary school and strengthening it in tertiary institutions, covering budgeting, savings, credit, interest rates, insurance, pensions, taxation, investment risk, digital finance, and consumer protection.
He emphasized that formal education alone is not enough, and financial literacy should also be delivered through workplaces, banks, professional bodies, community organisations, religious institutions, cooperatives, media, and digital platforms. The approach must be localised, as financial education for a farmer, market trader, civil servant, student, and small-business owner should not necessarily be identical.
"Technology provides an enormous opportunity. Nigeria can develop simple digital financial-literacy platforms using local languages, short videos, interactive tools and practical examples. We should move from financial literacy to financial capability—that is, not merely knowing what compound interest means, but being able to use financial knowledge to make better decisions," he told Legit.ng.
Urgent Reforms for Economic Recovery
Professor Aruwa outlined three urgent reforms essential for economic recovery. First, he called for reforming public financial management and accountability, with a stronger expenditure-control framework covering budgeting, procurement, project implementation, auditing, and reporting. He emphasized establishing a stronger "value-for-money" culture in government, where public spending demonstrates economy, efficiency, effectiveness, and equity.
Second, he urged accelerating economic diversification and productive capacity, moving decisively from an oil-dependent, consumption-driven economy to a productive one that creates jobs and earns foreign exchange. This requires coordinated investment in agriculture, manufacturing, infrastructure, energy, technology, skills, and export-oriented industries.
Third, he stressed building a transparent and credible fiscal-social contract, where government demonstrates a clear connection between taxes, borrowing, public expenditure, and public services. Citizens need to see where public money comes from, where it goes, and what it achieves, while government must protect vulnerable households during economic reforms.
"Nigeria does not lack economic potential. What we have lacked is sufficient consistency in converting our resources into productive capacity, strong institutions and improved living standards," Professor Aruwa concluded. "We must build an economy in which public money is efficiently managed, private investment is encouraged, citizens are financially empowered, institutions are accountable and economic growth translates into better lives. That is the foundation of sustainable economic transformation."
