By Adefolarin A. Olamilekan
May 29, 2025, marks two years since President Bola Ahmed Tinubu assumed office, a tenure that began under the weight of high national expectations and global scrutiny. Anchored by the “Renewed Hope” agenda, his administration pledged to revitalize Nigeria’s economy and confront deep-seated security challenges.
Two years on, the hope remains—but the journey has been arduous, especially for ordinary Nigerians navigating rising inflation, unemployment, and the cost of living. As the nation reflects on President Tinubu’s mid-term performance, one critical area worthy of close assessment is fiscal policy responsibility.
The Nexus Between Governance and Fiscal Policy
Elected leaders are ultimately judged not only by the promises they make but by their tangible outcomes—especially in areas that touch the lives of citizens daily. At the heart of these outcomes is economic governance, which is itself underpinned by sound fiscal policy.
Fiscal responsibility—defined as the government’s prudent management of public finances—plays a vital role in achieving sustainable economic development. It involves making informed decisions on taxation, public spending, borrowing, and investment with the ultimate goal of macroeconomic stability and improved living standards.
Fiscal Responsibility as a Governance Mantra
Since assuming office, President Tinubu’s administration has emphasized fiscal discipline as a cornerstone of its governance philosophy. This commitment covers the entire fiscal cycle—from medium-term expenditure frameworks to fiscal strategy papers, and from budget planning to revenue and expenditure management.
Notably, the Fiscal Responsibility Act (FRA) of 2007 remains a guiding instrument in this effort. The Act mandates transparency, accountability, and sustainability in public financial management—core principles the current administration has vowed to uphold.
When implemented faithfully, the FRA ensures that Nigeria’s fiscal policies align with global best practices. It seeks to:
- Maintain macroeconomic stability
- Promote budget credibility and transparency
- Ensure debt sustainability
- Enhance intergovernmental fiscal relations in Nigeria’s federal system
Progress and Challenges in the Tinubu Administration
In the past two years, President Tinubu has undertaken major reforms—such as fuel subsidy removal and exchange rate unification—that directly impact Nigeria’s fiscal outlook. These measures, while necessary for long-term stability, have triggered short-term hardships, highlighting the delicate balance between reform and public welfare.
Key achievements include:
- Increased federal revenue through subsidy removal
- Improved foreign exchange reserves
- Movement toward a more transparent budgeting process
However, these gains face persistent threats, including:
- High inflation and cost of living
- Widening income inequality
- Unemployment and underemployment
- Slow pace of public sector reforms
Furthermore, the complexity of intergovernmental fiscal relations—especially between federal, state, and local governments—continues to hinder coordinated economic planning and implementation.
Toward a Culture of Fiscal Nationalism
To sustain progress, Nigeria must institutionalize a culture of fiscal nationalism—one where all tiers of government embrace fiscal discipline, transparency, and accountability. This requires:
- Strengthening oversight institutions like the Fiscal Responsibility Commission
- Digitizing public finance systems for better monitoring
- Ensuring participatory budgeting processes involving citizens and civil society
- Aligning expenditure with developmental priorities, not political patronage
Conclusion
As Nigeria continues its economic journey under the Tinubu administration, fiscal policy responsibility must remain a top priority. It is not just a technical obligation; it is a moral and constitutional duty that impacts every Nigerian’s quality of life.
For fiscal governance to truly translate into improved economic outcomes, there must be a synergy between sound policy design and rigorous implementation. This is how President Tinubu’s “Renewed Hope” can move from aspiration to tangible transformation.
