Prof. Suleiman Aruwa, through the Public Finance Policy Reviews, has released a sharp analysis on fiscal reforms in Nigeria, warning that the country’s focus on raising revenue has not been matched by reforms in public spending.
Public Finance Policy Reviews are designed to strengthen transparency, accountability and the sustainable management of public finances with the ultimate goal of supporting national development and the public good.
Fuel subsidy removal, exchange rate liberalisation and tax restructuring and other recent fiscal measures in Nigeria have reportedly expanded the tax base and strengthened fiscal capacity. Yet, Prof. Aruwa observed in the latest PFPR series that “these reforms remain revenue-centred rather than people-centred, with limited attention to expenditure efficiency, waste reduction, and productive investment.”
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Despite higher revenues, poverty remains widespread. About 133 million Nigerians are classified as multidimensionally poor. Rising inflation, transport and food costs, and weak social protection have worsened living conditions. The public finance scholar stressed that “revenue mobilisation alone cannot reduce poverty unless matched with efficient spending, stronger social protection, and targeted investment in education, health, agriculture and infrastructure.”
Prof. Aruwa also cautioned that “when higher taxes and prices are not matched by better public services, public trust in fiscal reforms declines.”
Looking ahead, the fiscal policy expert called for expenditure-led reforms, including performance-based budgeting, spending reviews, digital procurement and value-for-money audits.
Read the full reviews here: https://www.profaruwa.org/