By Nana Musa
The Nigerian Economic Summit Group (NESG) has cautioned the Federal Government against reversing key economic reforms despite rising revenues, warning that stabilization gains remain fragile and must be sustained.
The warning comes as revenues distributed to the three tiers of government rose significantly from N11.69 trillion in 2022 to N16.24 trillion in 2023, with further sharp increases recorded subsequently.
President Bola Ahmed Tinubu had, in May 2023, announced the removal of petrol subsidy during his inauguration, declaring “fuel subsidy is gone” to curb wasteful spending and redirect resources to infrastructure.
The policy, however, triggered increases in fuel prices, transportation costs and overall living expenses, placing considerable strain on households and businesses across the country in the months that followed.
Speaking during an interactive session with journalists in Abuja, NESG representative Joseph Ogebe warned against calls for policy reversal amid global uncertainties, including ongoing tensions in the Middle East.
He explained that Nigeria had moved from economic vulnerability into a stabilization phase, adding that the country is now entering a consolidation stage focused on sustaining gains and addressing inflationary pressures.
Ogebe emphasised that government must remain committed to reforms while ensuring that the benefits are translated into tangible improvements in the lives of ordinary Nigerians across different sectors of the economy.
He cautioned that reversing reforms could undermine progress, recalling that Nigeria previously borrowed heavily to finance subsidies, limiting available funds for capital projects and critical national development initiatives.
According to him, the country must avoid “reform fatigue” as it approaches 2027, stressing the need for consistency in policy implementation to prevent a relapse into fiscal instability and economic uncertainty.
Ogebe noted that rising global crude oil prices present an opportunity for fiscal windfalls, which should be strategically deployed to support social protection programmes and cushion vulnerable populations.
He stressed that increased revenues must be used judiciously, prioritising infrastructure and development projects rather than recurrent expenditure, to ensure long-term economic growth and improved welfare for citizens.
He further highlighted the need for improved expenditure efficiency at federal and subnational levels, urging authorities to channel resources into projects that enhance productivity and stimulate sustainable development.
The NESG also called for structural transformation through investment in key sectors such as agriculture, manufacturing and power to drive production, boost growth and strengthen the nation’s economic base.
Ogebe projected that agriculture and manufacturing should grow between six and eight per cent, while power generation must expand significantly to support industrialisation and small and medium-scale enterprises nationwide.
He added that improving electricity supply is critical, noting that Nigeria must scale up generation capacity substantially before 2027 to effectively power industries and achieve sustainable economic transformation.
