Former Speaker of the Abia State House of Assembly and All Progressives Congress (APC) House of Representatives candidate for Ikwuano/Umuahia Federal Constituency, Rt. Hon. Chinedum Orji, has said President Bola Ahmed Tinubu’s fiscal reforms are laying the foundation for a more sustainable, tax-driven economy by reducing Nigeria’s long-standing dependence on crude oil revenues.
In a statement issued on Tuesday, Orji said the Tinubu administration inherited a fragile fiscal system that relied heavily on oil earnings but has since introduced reforms aimed at strengthening public finance through the removal of fuel subsidy, improved tax administration and the expansion of non-oil revenue sources.
According to him, rather than waiting for another oil price boom to boost government finances, the administration opted to rebuild the country’s revenue framework.
“Rather than wait for another oil boom to bail out the treasury, his administration chose to rebuild the plumbing of public finance: tax administration, digital collection, and a non-oil base wide enough to stand on even when barrels wobble,” Orji said.
He described the removal of petrol subsidy in May 2023 as the first major step in the government’s fiscal reforms, noting that the policy significantly increased government revenue.
Orji cited official figures showing that Federation revenue rose from ₦16.8 trillion in 2023 to ₦31.9 trillion in 2024 following the subsidy removal.
He added that statutory allocations to states and local governments increased from ₦6.16 trillion in 2023 to ₦15.26 trillion in 2024, giving sub-national governments greater financial capacity to invest in infrastructure, education, healthcare and other essential services.
According to Orji, the gains from the subsidy removal have been reinforced by efforts to modernise tax administration through digital revenue collection, data integration and improved tax compliance.
He said the government has also expanded its revenue base beyond the oil sector to include telecommunications, financial services, manufacturing, trade and the rapidly growing digital economy, including fintech companies, e-commerce platforms and content creators.
“No economy grows sustainably when only oil companies and big banks pay taxes while millions of profitable businesses stay off the books,” he stated.
Orji further pointed to what he described as positive fiscal outcomes of the reforms, including a narrower budget deficit, stronger external reserves and the clearance of a $7 billion foreign exchange backlog, saying these developments have helped improve investor confidence.
However, he acknowledged that the reforms have brought short-term hardships for many Nigerians through higher transportation, food and energy costs.
“The social contract of these reforms is still being negotiated. Households felt the pain first — higher transport, higher food, higher power bills. The promise is that the gains will be recycled into infrastructure, education and health,” he said.
He maintained that the long-term success of the reforms would depend on effective implementation and the government’s ability to demonstrate that the sacrifices being made by Nigerians are translating into tangible improvements in public services.
“Nigeria is still an oil country. But for the first time in a long time, it is budgeting like it might not always be,” Orji concluded.
