Nigeria's Budget Office: Economy Recalibrating, Not Collapsing

On Wednesday in Abuja, Tanimu Yakubu, the Director General of the Budget Office, asserted that Nigeria is not collapsing but rather recalibrating an unsustainable economic system. He acknowledged the undeniable hardships faced by citizens, which reflect a long-avoided confrontation with economic realities.

Yakubu emphasized that the current distress is not indicative of a system failure but rather a necessity for structural corrections that have persisted over the years. He pointed out that Nigeria's economy is operating under a framework that masks deeper inefficiencies, including artificially suppressed fuel prices and multiple exchange rate windows.

Despite these challenges, he noted that fiscal performance has improved, with federal revenue rising by 40 percent following the removal of subsidies. Additionally, Nigeria's public debt remains below 30 percent of GDP, and external reserves have surpassed $40 billion.

Yakubu highlighted the importance of restoring policy transparency and enhancing credible economic management to alleviate inflationary pressures.