Dare Babalola
Nigeria’s fiscal reforms have delivered significant progress in expanding revenue and improving fiscal sustainability, according to Dr. Muda Yusuf, Director/Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE).
In a policy brief released on Sunday, Dr. Yusuf highlighted the positive impact of the removal of fuel subsidy and the unification of exchange rates, which have boosted government revenues, expanded fiscal space, and improved the capacity for public investment.
“The next phase must focus on deepening revenue diversification, enhancing spending efficiency, and aligning fiscal outcomes with real economic performance,” Dr. Yusuf emphasized.
According to Dr. Yusuf, the reforms have driven strong nominal revenue growth, with fuel subsidy removal freeing trillions of naira in fiscal resources and exchange rate unification boosting naira-denominated oil revenues.
However, he noted that the real fiscal impact is tempered by high inflation and exchange rate pressures, highlighting the need to assess fiscal outcomes in both nominal and real terms.
Dr. Yusuf stressed the importance of prioritizing high-impact spending, strengthening subnational fiscal capacity, and implementing tax reforms with flexibility.
He emphasized that measuring fiscal gains realistically, broadening and diversifying the revenue base, and prioritizing high-impact spending are crucial for Nigeria’s economic growth.
The CPPE Director also highlighted the need for transparency and accountability in fiscal assessments and outcomes. By adopting a more nuanced approach to fiscal management, Nigeria can unlock its vast potential and drive sustainable economic growth.
