The House of Representatives Speaker, Tajudeen Abbas, said yesterday President Bola Tinubu’s administration’s “reforms have disrupted the status quo, sparking resistance from vested interests”.
He also said 2024 has been a year of mixed economic fortunes for Nigeria and Nigerians. The Speaker, who made the comments when Tinubu presented the 2025 Appropriation Bill to a joint session of the National Assembly, praised the President for his bold steps.
According to him, fuel subsidy removal, foreign exchange unification, and the Federal Government’s other policies have laid a solid foundation for sustainable growth and development. Abbas said the reforms demanded short-term sacrifices but were acts of courage and patriotism.
He added that history has shown that transformative progress often begins with difficult decisions. The legislator cited examples from China’s market reforms, India’s liberalisation, and South Korea’s industrialisation which, he stated, affirm the enduring benefits of such bold action.
“These lessons inspire confidence that Nigeria’s ongoing reforms will foster economic growth, reduce poverty, and ensure long-term prosperity,” he said. Abbas said:
“Nigeria’s fiscal realities warrant critical reflection. “Despite being Africa’s most populous nation with over 220 million people, our 2024 national budget of $36.7 billion remains modest compared to countries like South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people; and Morocco, allocating $50 billion for its 37 million residents.
“Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9 per cent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 per cent.
“In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 per cent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1% and 14.1 per cent, respectively.
“Even our VAT collection efficiency – at approximately 20% – is notably below the near 70 per cent efficiency achieved by South Africa, Equatorial Guinea, and Zambia.”
