The Director-General of the Budget Office of the Federation, Tanimu Yakubu, has stated that: “Nigeria is not collapsing; it is confronting long-avoided economic realities.”
In a statement on Wednesday in Abuja, Yakubu noted that the current hardship, though undeniable, reflects a deliberate process of correcting structural imbalances that have persisted for years, adding that distress is evident, but it must not be mistaken for systemic failure.
According to him, “Countries in true economic collapse do not unify exchange rates, rebuild external reserves, regain access to international capital markets, or improve fiscal performance. Nigeria, despite significant pressures, is making measurable progress across these indicators.
“For years, Nigeria operated under an economic framework that projected stability while masking deep inefficiencies. Artificially suppressed fuel prices, multiple exchange rate windows, and expansionary fiscal practices incentivized arbitrage over productivity.
“These distortions disproportionately benefited a narrow segment of the population while imposing hidden costs on the broader economy.
“Their removal has revealed the true cost structure of the system. While this transition has triggered inflationary pressures, it has also restored policy transparency and enhanced the credibility of economic management.
“Recent fiscal data indicates a strengthening foundation. Distributable revenues to the Federation Account have risen by over 40 percent following subsidy removal, reflecting improved remittance discipline and reduced leakages.
“Nigeria’s public debt remains below 30 per cent of GDP, a relatively moderate level compared to peer emerging markets, according to the International Monetary Fund. Meanwhile, external reserves have surpassed $40 billion, based on figures from the Central Bank of Nigeria,” he explained.
At the subnational level, Yakubu pointed out that increased fiscal inflows are enabling more consistent salary payments, with some states introducing inflation adjustments, an indication of gradually expanding fiscal space.
