Moghalu: Taxation Should Fund Public Goods, Not Elites

During the 2026 International Civil Service Conference in Abuja, Prof. Kingsley Moghalu, former Deputy Governor of the Central Bank of Nigeria, argued that taxes in Nigeria must be directed towards visible public goods rather than elite consumption.

He warned that countries pursuing economic growth without building strong institutions often end up with fragile economies marked by inequality and instability. Moghalu stressed that effective governance is foundational for economic transformation in the region and that no nation can achieve sustainable prosperity without competent state institutions.

He identified four major pillars of state capacity: protection, extraction, administration, and the ability to create a healthy business environment. Moghalu criticized the tendency of political leaders in developing countries to separate economic management from governance, stating that reliance on oil revenue and mega projects without institutional development would ultimately fail.

He highlighted Nigeria's paradox of significant corporate profits alongside widespread poverty, attributing this to uncontrolled population growth and a depreciating naira.