The Presidency has acknowledged that Nigeria’s revenue remains insufficient to meet the needs of its rapidly growing population, despite improvements in government earnings under the administration of President Bola Tinubu.
Special Adviser to the President on Policy Communication, Daniel Bwala, made the admission on Tuesday during an interview on Arise Television’s Prime Time program.
Bwala was responding to questions about why many Nigerians are yet to feel significant improvements in their daily lives despite repeated assurances from the Federal Government that the economy is improving.
His remarks come just days after President Tinubu, in a nationwide address marking the third anniversary of his administration, stated that Nigeria’s economy was on a path of recovery and growth.
The President highlighted a number of economic indicators which he said showed positive progress, including increased government revenue, foreign exchange reforms, rising investments and efforts to stabilise public finances.
However, many Nigerians continue to face high living costs, rising food prices, unemployment and economic hardship, leading to questions about when the benefits of the reforms will become more visible.
Addressing the concerns, Bwala said the challenge facing the government is the huge gap between available resources and the needs of a population estimated at more than 230 million people.
According to him, although government revenue has improved, it remains inadequate when compared to the demands created by Nigeria’s large population and longstanding infrastructure deficits.
“The population is over 230 million, but the resources we have, however, the increased revenue is not enough to match with the population and deficit in terms of infrastructure,” Bwala said.
He explained that because of this reality, economic growth and improvements in living conditions would take time rather than happen immediately.
“So, growth will have to be slow. It will be slow, steady and consistent. That is what we take pride in,” he added.
The comments provide insight into the Federal Government’s position on why many citizens are still struggling despite official reports pointing to economic improvements.
Since assuming office in May 2023, President Tinubu has introduced several major economic reforms aimed at restructuring the economy and reducing pressure on public finances.
Among the most significant policies were the removal of petrol subsidy and the unification of the foreign exchange market.
Government officials have argued that these reforms were necessary to prevent economic collapse and create a stronger foundation for future growth.
Supporters of the reforms say they have helped improve government revenue and attracted investor confidence.
However, critics argue that the policies have also contributed to rising inflation and increased hardship for millions of Nigerians.
The removal of fuel subsidy led to sharp increases in transportation costs and the prices of goods and services across the country.
Similarly, foreign exchange reforms contributed to the depreciation of the naira, resulting in higher costs for imported goods and raw materials.
These developments have affected businesses and households, with many Nigerians struggling to cope with the rising cost of living.
Recent data from government agencies and economic analysts show that food inflation remains one of the biggest challenges facing ordinary citizens.
Prices of staple foods such as rice, beans, yam and cooking oil have risen significantly over the past few years, placing additional pressure on family budgets.
Many workers have also complained that their incomes have not kept pace with inflation.
Despite these challenges, government officials maintain that the reforms are beginning to yield positive results.
President Tinubu, in his third anniversary address, said economic indicators were showing signs of improvement and that the country was moving in the right direction.
According to the administration, increased government revenue has provided more resources for infrastructure projects, social programs and other development initiatives.
The government has also pointed to ongoing investments in roads, railways, power projects and other critical sectors as evidence of progress.
Bwala’s comments suggest that while the administration believes it is achieving results, it recognises that the impact may not yet be sufficient to address the needs of the country’s large population.
Nigeria remains Africa’s most populous nation and one of the fastest-growing populations in the world.
Over the years, successive governments have faced difficulties generating enough revenue to meet these demands.
A significant portion of government spending is also devoted to debt servicing, salaries and recurrent expenditure, leaving limited resources for major development projects.
Many have also called for stronger investments in agriculture, manufacturing and technology to create jobs and stimulate sustainable growth.
While reactions to Bwala’s remarks have been mixed, some observers view his comments as an acknowledgment of the scale of the challenges confronting the country.
Others argue that Nigerians are less interested in economic projections and more concerned about tangible improvements in their daily lives.
For many citizens, the key issue remains whether economic growth can translate into lower prices, more jobs, improved public services and better living standards.
As the Tinubu administration enters its fourth year in office, expectations remain high that the government’s economic policies will eventually deliver the promised benefits.
For now, the Presidency insists that progress is being made, but admits that with a population of over 230 million people and huge infrastructure needs, the journey toward widespread economic relief will take time and require patience.
Bwala maintained that the administration remains committed to pursuing reforms designed to achieve long-term stability and growth, even if the results are gradual rather than immediate.