By Stellamaries Amuwa, Abuja
The Civil Society Legislative Advocacy Centre (CISLAC), and the Tax Justice and Governance Platform with support from Christian Aid Nigeria has stated that Nigeria is currently confronting a severe fiscal crisis marked by a consistent decline in federal government revenue over the past half-decade.
This was made known during a press conference on addressing Nigeria’s Fiscal Challenges: A Comprehensive Approach in Lagos by the Executive Director CISLAC, Auwal Ibrahim Musa.
According to the Auwal Musa the ED, Civil Society Legislative Advocacy Centre and the Tax Justice and Governance Platform with support from Christian Aid Nigeria through an ongoing Debt Justice campaign, ” We have undertaken several sensitization engagements with civil society and media as well as policy engagements with relevant state actors, most of which have been informed by our research on tax expenditures and its implications on debt management and sustainability in Nigeria.
“We believe that governments at all levels need to acknowledge the critical importance of formulating, implementing and monitoring fiscal policies that are technically sound, widely acceptable and administratively feasible. With a focus on tax expenditures, debt management, revenue mobilization reforms, and the prioritization of spending, the government should be committed to enacting measures that promote fiscal transparency, accountability, and sustainability.
“Central to this concern is the government’s overreliance on unsustainable debts which is perpetuated by unrealistic/over bloated budgets, weak revenue mobilization efforts, misplaced spending priorities and a lack of transparency and accountability in public finance management.
This alarming trend is evidenced by substantial shortfalls in revenue, with deficits ranging from 31% to as high as 50% in the years spanning 2018 to 2023.
“Concurrently, Nigeria’s overall debt burden has skyrocketed, reaching a staggering N97.34 trillion in the fourth quarter of 2023 from N87.9 trillion ($114.3 billion) as of June 2023. While Nigeria’s debt profile continues to grow, and it allocates most of its budget revenue to debt servicing at the expense of investing in more critical social sectors and infrastructural development, there has been a wide consensus around.
” Nigeria faces significant challenges in managing its debt burden amidst competing demands for scarce resources. The government should recognize the urgency of adopting a holistic approach to debt management that balances the need for borrowing with the imperative of debt sustainability.”
