In Nigeria, columnist says Tinubu solved more than half of economic problems
Nigerian author Tope Fasua, in a column for Premium Times Nigeria, stated that President Bola Ahmed Tinubu has solved more than half of the country’s economic problems in three years. The author linked this assessment to the removal of fuel subsidies, the unification of the naira exchange rate, higher tax revenues, and increased financial inflows to states and local governments.
Assessment of the reforms
According to Fasua, the abolished fuel subsidies cost Nigeria at least $10 billion annually. He also described the unification of the naira exchange rate, its subsequent depreciation, and stronger revenue collection as key steps.
The author claims that the tax revenue-to-GDP ratio has risen from 7% several years ago to 13% now. In his view, the reforms improved the financial position of states and local governments and gave them unprecedented liquidity.
Fasua compared this with the periods of previous administrations: according to the data he cited, 27 states had salary arrears under President Muhammadu Buhari, while 20 did so during the tenure of Goodluck Jonathan. He also noted that some states had previously accumulated pension debts, which, he claims, have now been paid off or are being paid off.
More current news is available on the UA.News Telegram channel Telegram.
Debt of states and the federal government
In his column, Fasua drew attention to the uneven distribution of the debt burden. By his estimate, Nigeria’s federal government carries 97% of total public debt, while states account for 3%.
The author believes that the revenue-sharing formula of 52:28:20 between the federal government, states, and local governments no longer corresponds to the volume of the central government’s obligations. He called on states to raise more funds for infrastructure through Islamic financing, green and blue bonds, and national capital market instruments, while warning of the risk of a debt trap.
Fasua also stated that the federal government pays salaries to at least two million people every month, and its payroll exceeds 1 trillion naira. In his view, this limits the government’s ability to finance other areas of development.
