By Mariam Abeeb
The Director General of Budget Office of the Federation, Tanimu Yakubu has stressed that
Nigeria is not collapsing, noting that it is confronting long-avoided economic realities.
The DG made this known in an opinion made available to our correspondent, he explained that the current hardship, though undeniable, reflects a deliberate process of correcting structural imbalances that have persisted for years.
According to Yakubu, Countries in true economic collapse do not unify exchange rates, rebuild external reserves, regain access to international capital markets, or improve fiscal performance, stating that Nigeria, despite significant pressures, is making measurable progress across these indicators.
Speaking on ending a distorted economic order, he stated that for years, Nigeria operated under an economic framework that projected stability while masking deep inefficiencies.
He noted that artificially suppressed fuel prices, multiple exchange rate windows, and expansionary fiscal practices incentivized arbitrage over productivity.
Yakubu mentioned that the distortions disproportionately benefited a narrow segment of the population while imposing hidden costs on the broader economy.
The DG noted that the removal has revealed the true cost structure of the system, while the transition has triggered inflationary pressures, it has also restored policy transparency and enhanced the credibility of economic management.
‘’Strengthening the Fiscal Base: 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 percent 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.
‘’At the sub-national level, increased fiscal inflows are enabling more consistent salary payments, with some states introducing inflation adjustments, an indication of gradually expanding fiscal space.
‘’Inflation: A Transitional Challenge . Inflation remains the most immediate and visible consequence of ongoing reforms. It is being driven by exchange rate adjustments, energy price corrections, and longstanding supply-side constraints.
‘’Global experience suggests that such inflationary spikes are often temporary when reforms are sustained. The greater risk lies not in reform itself, but in policy inconsistency or reversal.
‘’Interpreting the Present Moment: Public frustration is both expected and understandable. Nigerians are justified in demanding tangible improvements in living standards. However, it is important to distinguish between short-term hardship and systemic collapse.
‘’Nigeria’s institutional framework remains intact, fiscal capacity is improving, and macroeconomic reforms are actively progressing. This phase represents adjustment, not disintegration’’ he stated.
The DG explained that the next phase of reform must translate macroeconomic gains into measurable improvements in citizens’ welfare, adding that strategic investments in healthcare, education, and targeted social protection will be essential to sustaining public confidence.
He noted that ultimately, the credibility of these reforms will be judged not by policy intent, but by their impact on everyday life.
‘’Nigeria has long recognized its economic challenges; what has often been lacking is sustained policy execution. The greatest threat at this juncture is not reform fatigue, but reform reversal.
‘’Abandoning the current course would erode credibility, deter investment, and reintroduce the very distortions that hindered growth.
‘’This moment demands patience, discipline, and resolve. Nigeria is not collapsing, it is undertaking a necessary correction and laying the foundation for a more resilient economic future,’’he noted.
