2025 fiscal year: Nigerians must keep hope alive, by Kola Amzat
In recent history, the immediate past year indeed remains the toughest and most difficult years for Nigerians. It was the year the manifold effects of several on-going reforms by the federal government manifested full-blown.
During that year, the federal government two (2) key policies of subsidy removal and floating of exchange rate necessitated the PMS Price to oscillate between N1000 and N1200 across the country and domestic currency Naira to swing between N1500 and N1,650 respectively.
Considering where Nigerians were coming from, particularly in years 2021 and 2023, there is no doubt that effect of the reforms inflicted untold pains and hardship on thousands of households, and even business enterprises, across the country.
However, as much as this writer acknowledge the untold hardship the twin policies are having on Nigerians, there is no doubt they’re necessary, as well as inevitable policy initiatives aimed at correcting lopsidedness, imbalance and off-course, bring to a close mindboggling looting of the nation treasury in the past.
It’s instructive to submit that, while Nigerian professionals and generality of other Nigerians in diverse fields were diligently, legitimately and genuinely earning their incomes through hard-work, few members of oil & gas cabal were frustratingly looting the treasury of the nation with impunity and reckless abandon, deploying the instrument of fuel-subsidy removal, and smiling to banks with hundreds of billions of naira on monthly basis.
Only a less-discerning and uninformed president would allow this conundrum and mindless attack on the nation resources to continue unchecked.
It’s the same for currency speculators who were making tremendous fortunes through hoarding of foreign currency/s with the aims & objectives of causing scarcity in their bids to earn significant profit from their ignoble enterprise, thereby subjecting economy to undue pressure.
But, the truth remains that we’ve all survived the horrific year and have rolled gloriously into year 2025.
The crux of this Piece therefore is that the gains of the catalogue of on-going reforms have started manifesting.
December 2024 signaled the significant turn-around in the fortunes of old Port Harcourt dilapidated Refinery, with its total completion of rehabilitation works, as well as commencement of oil production therein.
While the nation was still basking in the euphoria of the awesome development, and before we say Jack Robinson, NNPC didn’t only stun the nation with a bolt from the blue news of completion of rehabilitated works of Warri Refinery, they boldly announced the commencement of oil production therein.
And, as the longsuffering Nigerians were ruminating on this, they came with another awesome declaration that Kaduna Refinery would soon come alive, with the commencement of oil production also confirmed.
With Refinery in Kaduna also resurrecting, the cycle of rehabilitation works on three (3) long-forgotten Refineries would have been completed.
Instructively, the 3 Refineries are coming alive just within 19 months of Tinubu presidency.
These are projects that have been declared “dead” by the successive administrations, including the much vaunted Obasanjo regime.
In the months ahead, it’s no brainer that this glorious development in the oil & gas sector would cause significant reduction in the prices of petroleum products across the board.
To what extent is what I don’t know?
On a related note, it’s also gratifying that various reforms in security apparatus aimed at checking oil theft and bunkering in deep sea in Niger Delta are producing significant result as nation oil production has recently jumped to 1.8 million barrel/day.
Of course, during the last quarter of immediate past year, there came a cheering news that Nigeria’s foreign reserves grew by a notable $5.57 billion over six months, rising from $33.04 billion on April 8, 2024, to $38.61 billion by October 3, 2024, a gratifying development that underscores the resilience of the country’s external position despite on-going global economic challenges and external factors.
On a related note, the debt service ratio also witnessed a significant reduction from 97% to 68% of revenue, providing more financial freedom to invest in essential social services like education and health care
There are also notable reforms in social intervention programs purposed to address the need and concerns of all segments and cadres in the society-SMEs, youth groups, students, women groups, market women, farmers, vulnerable Nigerians, displaced people by natural disasters etc.
These are deliberate efforts to ensure every Nigerians are able to partake in the resources of the nation.
Meanwhile, the 2nd and 3rd quarters of year 2024 heralded completion of reform of Fiscal Autonomy of Local Government Authority.
With Supreme Court verdict that granted autonomy to local government authority, at the instance of federal government, it’s indeed a dawn of a new era in all 774 Local Government Councils, as more funds would not only be available to them to fund and execute infrastructural and educational developments, as well as medical infrastructures, socio-cultural activities, their allocations would also henceforth be effected to them directly from FAAC.
It’s important to submit that this is one fantastic policy initiative that successive presidents practically ran away from, for fear of making the country ungovernable for them by the governors.
If governors across the federation allow the aims and objectives of this policy to absolutely manifest, it has potential to completely turn the tide in all the gamut at the local government levels across the country.
It’s also in the public domain that the federal government has significantly increased the monthly allocations due to state and local governments from FAAC accounts. This is a bold reform at the instance of the president for the purpose of driving development at all levels of government.
The increase largely resulted from savings from removal of fuel subsidy and several federal authority initiatives to increase revenue generation notably, from tax resources.
Meanwhile, the increase is aimed at strengthen the capacity of state and local government to execute grade A and octane projects in infrastructural, educational, ICT, medical, agricultural projects capable of heralding growth and large scale developments all over the country.
To realize the objectives of the president in this respect, it’s also incumbent on the governors to collaborate with the Commander-in-Chief in this instance.
Another policy initiative of federal authority aimed at changing landscape of revenue generation is Tax Reform Bill awaiting NASS verdict passage into law, even though, against all odds particularly, concerted opposition from the North.
For the avoidance of doubt, the Bill is purposed to ensure uniformity in tax revenue administration in Nigeria in accordance with the provisions of 1999 Constitution as amended, strengthen administration of progressive tax, eliminate the incidence of multiplicity of taxation across the country, deploy taxation as a tool to encourage private sector investments in critical industries, as well as boost individual disposal incomes through targeted tax exemptions as captured in the Bills already with national assembly.
This writer would like to once again make passionate appeal to all opposition to the bill, particularly, our Northern brothers that, they should please sheath their swords, and let the bill be.
As a renowned Chartered Accountant and Tax Practitioner, this writer assure that president meant really well in transmitting the bill to national assembly for passage into law, to address hitherto inequity, imbalance and injustice particularly against the North in the existing Act with reference to VAT revenue distribution.
Meanwhile, the icing on the cake during the last days of 2024 is transmission to national assembly of the audacious 2025 ₦47.9 Trillion Appropriation Bill, essentially aimed at strengthening the on-going re-engineering, repositioning and restructuring in all sectors with the ultimate aims and objectives of heralding prosperity.
Indeed, the budget completely overwhelmed that of immediate past year figure of ₦28.78 Trillion by whopping ₦19.12 Trillion (65%), considered then, unworkable and most unrealistic by the feeble minds.
The Appropriation bill with Capital expenditure of ₦16.4 Trillion (33%) and N14.2 Trillion for non-debt recurrent expenditure components is expected cause remarkable turn-around in all gamut.
Allocation of ₦4.91 trillion for defense and security is aimed at strengthen national security, as well as combat widespread insecurity and criminality across the country.
Greater attention is expected to be accorded huge investments on military equipment and contemporary war machines & drones to combat scourge of criminality all over, a development expected to overhaul internal security strategies to safeguard lives, properties, and investments nationwide with the focus on improved security, stimulation of economic activities and social life, enhance farm productivity, as well as boost access to education, especially for the vulnerable.
₦4.06 Trillion and ₦1.14 Trillion projected for Infrastructural Developments and Power respectively are aimed at efficient and functional transportation system across the country, significant improvement in energy supply, as well as rehabilitation of national grids, public works in all the nooks and crannies, including the gigantic and the bold on-going Lagos-Calabar Highway project .
Education with allocation of ₦3.52 Trillion is meant to drive a remarkable turn-around in educational infrastructures, as well as broadening access to student loans to accommodate several thousands in tertiary institutions.
Health sector budget allocation of ₦2.48 Trillion is meant to revitalize healthcare facilities, as well as advance universal health coverage.
No one need soothsayers to announce what the above highlights portends for Nigeria economy, infrastructures, ICT, education, medical facilities, and other gamut.
I’m convinced Nigerian fortunes would be significantly turned around.
To what extent this would be is what this writer may not be able to foretell.
2024 and other previous years had expired with their challenges and pains.
They would never come back again.
Other countries of the world, even, developed countries had their difficult times; they fought relentlessly and courageously to turn it around, as well as reached the pedestal they’re today.
No good things come easy!
Nigeria is not an exception to vagaries, vicissitudes and challenges imposed by nature; but, we must keep hope alive.
It’s important we renew our hope in our dear nation, have trust and confidence in the ability of the president and his team to deliver, as well as play our individual part to ensure a new Nigeria berthed.
Kola AMZAT (FCA, FCIB)
Lagos based Financial & Management Consultants,
09077509348.
