Nigeria’s ₦12.4 Trillion Revenue Surge: Real Progress or Just Paper Gains?
The World Bank is buzzing about
Nigeria’s fiscal performance:
In 2024, federal revenue jumped by 82.4%
from ₦6.8 trillion in 2023 to a record-breaking ₦12.4 trillion.
On paper, that sounds like progress.
But here’s the real question: Is this revenue growth sustainable, equitable,
and impactful or is it just a statistical sugar rush?
Let’s break it down and separate reform reality from revenue hype.
What the World Bank Report Says
According to the World Bank:
·
Revenue increased by ₦5.6 trillion
·
Growth is driven by:
o
FX unification (single
exchange rate policy)
o
Better tax collection systems
o
Reforms in treasury remittances
In their words: “Strong fiscal consolidation efforts are paying off.”
The Devil’s in the Details: What’s Not Being Said
1. FX Unification Gave the Illusion of Growth
Yes, unifying the exchange rate boosted naira
inflows but mostly on paper.
Example: If crude oil revenue was $10 billion,
at ₦460/$ in 2023, you record ₦4.6 trillion.
At ₦1,200/$ in 2024, it becomes ₦12 trillion same dollar amount, more
naira.
Translation: You’re not earning more;
you’re just converting it differently.
2️. Are More Nigerians Just Paying More… for Less?
“Enhanced tax administration” often means:
·
More aggressive tax drives on SMEs
·
Reintroduction of old levies (e.g., Stamp Duty,
Telecom taxes)
·
Less tolerance for tax defaults even for
informal sector players
But:
·
Is the tax burden fair across income groups?
·
Are public services improving in proportion?
Financial Juggernut Insight
Yes, revenue rose. But revenue ≠ prosperity.
Before we clap for ₦12.4 trillion, ask:
·
Is it reducing debt or has per capita income increased?
·
Is it easing inflation for the average Nigerian?
Fiscal growth is meaningless if it fails to enhance
citizens’ everyday well-being.
