President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has implored President-elect Bola Tinubu, to prune down the cost of governance.
Adesina, who spoke at the inauguration lecture which is part of activities lined up for Monday’s swearing-in of Tinubu as Nigeria’s next president, noted that reducing cost of governance is the first step towards reviving Nigeria’s ailing economy.
Adesina said the inflated size of government comes with high cost of public sector expenditure and its negative impact on the development process in the country.
He said, “The cost of governance in Nigeria is way too high and should be drastically reduced to free up more resources for development. Nigeria is spending very little on development.
“Today, Nigeria is ranked among countries with the lowest human development index in the world, with a rank of 167 among 174 countries globally, according to the World Bank 2022 Public Expenditure Review report.”
He asked Tinubu to rise to the challenge of governance on his first day in office, as the country needs leadership that will reassure it with hope of security, peace, and stability.
Speaking on the topic, “Strengthening Nigeria’s Economy”, Adesina said that Nigeria needs to be healed and united.
He noted that the new administration must prioritise macroeconomic and fiscal stability as imperative, insisting that the incoming administration must act as a matter of urgency.
“Unless the economy is revived and fiscal challenges addressed boldly, resources to develop will not be there. No, bird can fly if its wings are tied. Nigeria currently faces huge fiscal deficits, estimated at 6% of GDP. This has been due to huge federal and state government expenditures, lower receipts due to dwindling revenues from export of crude oil, vandalism of pipelines and illegal bunkering of crude oil,” he said