NYFA LEADERS' ECONOMIC DIGEST Episode 28

NYFA LEADERS' ECONOMIC DIGEST

Episode 28

By NYFA Editors

FROM GIANT TO BEGGAR: TAXES, TEARS AND TRILLION-NAIRA DEBTS: THE TINUBU'S LEGACY.

In the land of Nigeria, where taxes bloom like wildflowers, the administration of President Tinubu has seen fit to bestow upon its citizens an abundance of new levies, ostensibly to satiate the insatiable appetite of the nation's coffers. One cannot help but wonder, however, whether these additional fiscal burdens will indeed be utilized to foster meaningful development or merely to further line the pockets of the well-connected.

Taxes, in their infinite wisdom, are purportedly designed to fund essential public goods and services, thereby enhancing the citizenry's quality of life. In reality, however, the dividends of democracy seem to be enjoyed by a select few, while the majority struggle to eke out a living amidst rising costs and stagnant incomes. The proceeds of existing taxes, one would assume, should have yielded some tangible benefits by now – better infrastructure, improved healthcare, enhanced education, and so forth. It is crumbling infrastructure, worsening healthcare indices, and education limping along, propped up by the goodwill of its practitioners rather than governmental support.

The implications of increased taxes in such a scenario are manifold. For the average Nigerian, it translates to a higher cost of living, stagnant real incomes, and a diminishing standard of living. For a government lacking in accountability and transparency, increased taxes merely provide more fuel for the engine of corruption, allowing unscrupulous officials to siphon off funds with impunity.

One cannot help but ponder the rationale behind these tax increases. The yawning chasm between the rich and the poor continues to grow, and the government's revenue generation seems to be geared more towards enriching a select few rather than stimulating economic growth. The fuel tax increase, in particular, is bleeding the already anaemic economy further, with the attendant consequences on transportation costs, prices of goods, and the overall cost of living.

In a moment of nostalgia, one is reminded of the halcyon days between 1999 and 2007, when the cost of living was relatively low, and Nigeria seemed poised on the cusp of greatness. During this eight-year period, not only was the cost of living manageable, but significant strides were made in debt repayment. Fast-forward to the current administration, and one is struck by the sheer scale of borrowing. Trillions of naira have been borrowed in a mere two years, ostensibly to fund developmental projects. The inconvenient truth, however, is that these borrowings seem to have done little to improve the lives of ordinary Nigerians.

President Tinubu's tenure has been marked by an unprecedented borrowing spree, earning him the sobriquet of the "borrowing King." This borrowing binge has had the unfortunate effect of reducing Nigeria from a giant of Africa to a supplicant nation, forever knocking on the doors of international lenders. The dynamics of Nigerian politics have been irrevocably altered, with the country's development being stunted by the weight of debt servicing.

The situation has become so dire that other countries are reportedly wary of engaging in candid conversations with the President, lest the discussion veer into the realm of borrowing. It is a predicament eerily reminiscent of the diasporan experience, where calls from back home are often approached with trepidation, given the almost inevitable segue into begging.

One thing is clear in this quagmire of debt and fiscal mismanagement; Nigeria's economy needs to be rescued from the brink of collapse. The nation can not continue down this path of fiscal irresponsibility, lest it be reduced from the giant of Africa to the ant of Africa. The imperative of the hour is a return to fiscal prudence, accountability, and a commitment to sustainable economic practices. Only then can Nigeria reclaim its rightful place as a leader on the African continent.

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