Former Speaker of the Abia State House of Assembly and APC House of Representatives candidate for Ikwuano/Umuahia, Rt. Hon. Chinedum Enyinnaya Orji, has said President Bola Ahmed Tinubu’s fiscal reforms are deliberately moving Nigeria away from oil dependence toward a tax-driven revenue economy.
In an opinion article titled “From Crude to Cash: How Tinubu’s Fiscal Reset Is Redefining Nigeria’s Revenue Economy”, Orji argued that the administration inherited a budget structure tied to crude oil prices and has begun rebuilding public finance through subsidy removal, digital tax collection and an expanded non-oil base.
“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 wrote.
He described the removal of petrol subsidy in May 2023 as the first step of the reset, stating that it increased Federation revenue from ₦16.8 trillion in 2023 to ₦31.9 trillion in 2024, according to data cited in the article.
Orji said allocations to states and local governments also rose sharply, from ₦6.16 trillion in 2023 to ₦15.26 trillion in 2024, giving subnationals more capacity to fund roads, schools and hospitals.
The former Speaker said government complemented the subsidy savings with reforms to modernise tax administration through digital systems, data matching and compliance drives.
He noted that the reforms now target telecommunications, financial services, manufacturing, trade and the 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 cited improvements in fiscal indicators, including a narrowing deficit, stronger external reserves, and clearance of a $7 billion foreign exchange backlog, which he said reflected growing investor confidence.
He, however, acknowledged the immediate burden on households from higher transport, 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,” Orji wrote.
He said the success of the fiscal reset will depend on implementation and public trust, stressing that citizens must see tangible improvements in 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,” he concluded.
