WAIFEM DG charts path to economic prosperity

With a vast arable land and a youthful population, Nigeria has all it takes to become an economic powerhouse. Unfortunately, lack of proper planning, corruption and a culture of mediocrity have kept the country as a lame dog.

Currently, Nigeria faces double-digit inflation, driven by escalating food and energy costs as well as bleeding naira exacerbated by the removal of fuel subsidies and floating of the naira.

The new economic reform measures of the current administration, though well-intentioned as many have agreed, have further pushed more Nigerians into poverty.
But all hope is not lost, said the Director General of the West African Institute for Financial and Economic Management (WAIFEM), Dr Baba Yusuf Musa. In a recent paper he presented at the Department of Economics International Conference, Ahmadu Bello University, Musa rightly described Nigeria as a sleeping giant.

The paper titled, ‘Awakening the Sleeping Giant: Navigating Economic Resilience in Nigeria for Growth and Stability’, touched on the numerous economic potential, including both natural and human resources, the country is blessed with but which have remained largely untapped due to poor planning and visionary leadership.

He said with oil and natural gas reserves estimated at 37.5 billion barrels and 209.26 trillion cubic feet respectively, Nigeria presents vast investment opportunities in the upstream gas sector.

In the area of agriculture, the DG of WAIFEM said with nearly 70 million hectares of arable land, Nigeria has the potential to become a global agricultural powerhouse, feeding both its population and exporting to other countries.

The paper highlighted the country’s untapped opportunities in the energy, manufacturing and services sectors, noting that careful harnessing of these potentials will greatly build the country into a sound and resilient economy that will also impact other African countries.
As a way out of its crises, he suggested measures the government must take urgently to build a resilient economy that will be able to withstand and recover from shocks.

Among these, he said, the country must diversify its economy by building a mix of industries to help cushion against sector-specific downturns. Others, according to him, are building strong institutions that will ensure that plans and policies are implemented, fostering trust and ensuring the rule of law and transparency.

Other measures that must be adopted include fiscal responsibility, fiscal consolidation, flexible and credible monetary policy, development of human capital, building an educated and skilled workforce, supporting innovation and adaptability and infrastructure development.

Musa said: “To enhance both monetary and fiscal performance, Nigeria must prioritise economic diversification and sound fiscal management.” This, he said, means reducing dependence on oil revenue by developing other sectors such as agriculture, technology and manufacturing.

“Establishing a robust framework for fiscal discipline — characterised by transparent budgeting and efficient public spending — will help stabilize the economy and strengthen government credibility,” he said. He also suggested that political office should be regarded as a position of service rather than a means for personal gain.

“To embody this principle, we must establish clear limits that foster fiscal responsibility and guarantee that public resources serve the interests of citizens.

“One practical measure would be to implement a spending cap of N30 million for vehicle purchases intended for official use by public officials. “Moreover, it is essential to restrict duty tours and mandate that public officers travel only in the economy or standard class to minimise unnecessary expenditures. Additionally, constituency projects should be coordinated through national and state development plans to prevent redundancy and wasteful spending,” he said. He said attracting foreign direct investment (FDI) relies on creating a favourable business climate characterized by regulatory clarity and stability.

“Nigeria must simplify bureaucratic processes, lower the cost of doing business, and ensure the protection of investors’ rights. Strengthening the legal framework for investment and fostering a culture of transparency and accountability will boost investor confidence,” he said, adding that offering targeted incentives for foreign investors in key sectors can generate interest while promoting Nigeria as a gateway to the larger African market can further increase its investment appeal.

“By implementing these measures, Nigeria can position itself as a competitive destination for FDI, driving economic growth and development,” he noted.
He said relying on cash transfers to address youth unemployment and provide social safety nets is a short-term approach that may not effectively serve Nigeria in the long run.

The economists noted that a more constructive solution lies in harnessing the potential of the country’s large pool of educated graduates to meet critical societal needs, particularly in infrastructure development.

“By engaging these young professionals in meaningful and impactful work, we can boost productivity and foster sustainable economic growth. Also, graduates have a vital role to play in enhancing Nigeria’s security framework. As modern policing and military operations continue to embrace digital technologies globally, integrating educated youth into these sectors presents an opportunity to significantly improve our national security capabilities.

“This proactive strategy not only addresses current security challenges but also sets the foundation for developing a more competitive and sophisticated security system, aligning Nigeria with the standards of more advanced nations,” he said.

As the country struggles with revenue generation, a data-driven approach to tax collection particularly in property tax and tax auditing is vital for improving efficiency, accuracy, and compliance.

Musa also noted: “This method not only enhances the effectiveness of audits but also alleviates the burden on compliant taxpayers. Ultimately, it promotes a more transparent, equitable, and efficient tax system.”

Other measures the paper presenter suggested should be adopted to enhance sustainability and resilience in Nigeria include, reducing trade barriers and coordinating state-level policies, regulations, and market creation within the power sector.

“Lowering both formal and informal levies across major trade corridors will facilitate smoother trade flows. Adopting a uniform national schedule of levies and fees is also crucial to ensure consistency and fairness in the trading environment.

“Together, these measures will create a more efficient and resilient economic landscape.”
To strengthen the tax framework for small and medium-sized enterprises (SMEs) at the state level, he proposed the introduction of a streamlined turnover tax that would replace the multitude of existing fees and levies currently burdening these businesses.

“This approach not only simplifies the tax compliance process for SMEs but also enhances their understanding of tax obligations, considerably reducing the administrative challenges associated with managing multiple payments.

“By adopting a clear and unified turnover tax, we can establish a tax environment that is more predictable and transparent, allowing SMEs to allocate their resources with greater efficiency. This streamlined system is likely to encourage more businesses to formalize their operations, which would not only boost tax revenue for the state but also create a more supportive ecosystem for the sustained growth of SMEs. In essence, this reform is not just about taxation—it is about empowering SMEs to thrive and play a pivotal role in driving local economic development.

“By alleviating their tax burdens, we enable these enterprises to contribute significantly to the economy and uplift the communities they are a part of.”