Use rising earnings to assuage sufferings of Nigerians, experts tell FG
As of the first half of the 2024 fiscal year, revenues accruing to the Federal Government from crude oil sales, tax earnings from the Federal Inland Revenue Service (FIRS), as well as import and export duties from the Nigeria Customs Service (NCS) were estimated to have reached an all time high of N32.48 trillion.
Details of the figures revealed that the Nigerian government earned a whopping N15.48 trillion from crude oil sales between January and June, while the Federal Inland Revenue Service and the Nigeria Customs Service reported earnings of N12.5 trillion and N4.5 trillion respectively.
Earlier, a report by the Centre for the Study of the Economies of Africa (CESA), had revealed that the Foreign Trade in Goods Statistics (Q1 2024) released by the National Bureau of Statistics (NBS) shows that Nigeria recorded a trade surplus of N6.52 trillion in the first quarter of 2024 (Q1 2024).
This is a significant improvement in trade when compared to the N3.63 trillion trade surplus in Q4 2023 and the N20.93 billion trade surplus in Q1 2023.
In the first quarter (Q1 2024), Nigeria’s total trade was ₦31.81 trillion, suggesting a 46.27 percent increase from the value recorded in the fourth quarter of 2023 (N21.74 trillion) and a 146 percent increase from the value recorded in the corresponding period of 2023, which stood at N12.95 trillion. Total exports amounted to N19.16 trillion, and imports amounted to N12.64 trillion.
On a year-on-year basis, the growth rate of exports was higher than that of imports, with exports growing by 51 percent and imports by 40 percent. In Q1 2024, crude oil exports were valued at ₦15.48 trillion and accounted for 81 percent of total exports, while non-crude oil exports stood at ₦3.68 trillion, accounting for 19 percent of total exports.
“Analysing the trade statistics reveals that Nigeria’s strong performance in oil exports was mostly responsible for its favourable balance of trade position in the first quarter of 2024. The growth in trade needs to be interpreted with caution given currency depreciation within the last 12 months. We need to diversify our export basket to increase the share of non-oil exports to over 50 percent.
“Hence, the government needs to assess and improve its ongoing non-oil export promotion initiatives, to boost and diversify export earnings, given the Nigerian economy’s extreme susceptibility to changes in commodity prices due to the concentration of exports on a small number of commodities, particularly crude oil,” the report stated.
Reacting to the huge figures, which dovetailed into the first half of the year, representing an all time high in the country, analysts have raised concerns of the President Bola Ahmed Tinubu administration’s fiscal responsibility and accountability, as the government enters its second year.
Read also: FIRS surpasses 2023 revenue target, generates N12.36 trillion
They also generated misgivings among the suffering masses of the country, who have been wondering that in spite of the increasing revenues into the government coffers, Nigerians keep wallowing in severe and unprecedented economic hardship and depravation never experienced in the country’s annals.
A development expert, Chief God’sPower Chehoke Obi, said: “There is so much hunger, suffering, so much deprivation and angst in the country. Since the Purported removal of fuel subsidy, the price of petroleum products is at a cut- throat level, while the price of cooking gas keeps rising. Nigerians can’t afford staple food items like garri, beans, yam and rice or even tomato, fish and meat.
“In spite of the economic hardship being faced by Nigerians, power distribution companies (DisCos) have increased electricity tariff to N1000 per 4KW, while transportation fare has more than doubled since May last year. It is as if the government of the day takes pleasure in fleecing Nigerians of the money they do not even have.
“Tuition fees in tertiary institutions were increased in spite of public outcry against the move. Yet there is no electricity and water in some of the Federal universities, which is why for instance, the University of Benin (UNIBEN) was shut indefinitely about two weeks ago when students protested against power outage and lack of water.
“Besides these challenges, the President Tinubu-led government seemed to care less about investing in infrastructure development across the country, yet the Nigeria Police Force has the effrontery to caution Nigerians against engaging in peaceful protests to demand their right to better conditions of living. Does it mean there is nothing the government can do to reduce the suffering in the land?”
Also commenting on the state of the nation, a Senior Advocate of Nigeria (SAN), Okotiebor James, wondered why the present government has been so indifferent to the plight of Nigerians in spite of the impressive revenues accruing to it and the excruciating pains in the land.
“For instance, how can a government receiving trillions of Naira from sundry sources, besides crude oil sales, revenues from FIRS and NCS, be taking several months to agree on a reasonable minimum pay for public servants.
“Even handlers of the government and those sympathetic to the current administration will agree that it is not living up to expectation in its responsibility to provide succor to the suffering Nigerian masses. Something needs to be done fast, as no government succeeds with a largely disgruntled populace. It should quickly deploy proactive measures to assuage the sufferings of Nigerians,” he concluded.
