Editorial
Making 2022 Budget Work
In recent times, the Federal Government’s unrestrained penchant for domestic and foreign loans has been variously criticised as unhealthy for Nigeria’s economy. Many economic experts have particularly expressed worries over Nigeria’s rising debt profile especially debt service-to-revenue ratio as well as foreign exchange liquidity constraints. These worries were recently exacerbated by the resolve of the Federal Government to borrow N5.01 trillion to finance the 2022 proposed budget.
While presenting the 2022 Appropriation Bill of N16.39 trillion to the joint session of the National Assembly, penultimate Thursday, President Muhammadu Buhari had said that the 2022 budget would be financed by borrowing to the tune of N5.01 trillion. The 2022 budget proposal contains capital expenditure of N4.89 trillion, a non-debt recurrent expenditure of N6.83 trillion, personnel cost of N4.11 trillion and debt service of N3.61 trillion.
The total federally distributable revenue is estimated at N12.72 trillion in 2022 while total revenue available to fund the 2022 budget is estimated at N10.13 trillion. This includes Grants and Aid of N63.38 billion, as well as the revenues of 63 Government-Owned Enterprises (GOEs). This shows that the 2022 budget has a deficit of about N6.25 trillion, approximately 3.39 per cent of GDP. This is slightly above the 3 per cent ceiling set by the Fiscal Responsibility Act 2007 (FRA). A budget deficit occurs when expenditure exceeds revenue.
While we agree with the President that the huge expenditure budget may be compelled by the need to overcome current security challenges and accelerate post-recession growth, we are concerned that the Federal Government’s resort to borrowing to finance the 2022 fiscal gaps is not good enough for the nation’s economy that is already suffocating under the huge burden of foreign loans.
We say this because Nigeria’s budget deficit has risen to N20.64 trillion. Data from the budget office, covering 2016 to 2020 show that more than N7.97 trillion was borrowed from foreign and domestic sources to fund the budget deficits. This, to us, is not healthy for our economy.
Although the President and some economic experts are quick to say that the debt level of the Federal Government is still within sustainable limits, and that the borrowings are tied to some specific critical development projects and programmes, we are worried that the continuous running of the nation’s economy on budget deficit is capable of mortgaging the future of the country.
It is, therefore, imperative that the Federal Government devises various means of improving the revenue profile of the country. While some of the revenue generating initiatives contained in the 2022 budget are commendable, a key focus area may be to explore avenues to diversify export revenue sources away from crude oil, which currently accounts for more than 80 per cent of total foreign exchange receipt.
Concerted and coordinated efforts are also required to improve the policy environment and address insecurity to boost domestic investment and attract foreign direct investments. The government also needs to ensure speedy ratification and strategic implementation of the Africa Continental Free Trade Agreement (AfCFTA) to position Nigeria as a choice investment destination in Africa.
Meanwhile, it is expected that a robust implementation of the Petroleum Industry Act (PIA) would promote investment in the oil and gas sector, stimulate economic growth and sustainability. Also important is the need to widen the nation’s tax net to accommodate more taxable Nigerians. Here, we recommend the resuscitation of toll gates on federal highways to shore up the revenue profile of the government.
It is also incumbent upon the three tiers of government to be guided by the recent revelations by the Chairman, Federal Inland Revenue Service, Muhammad Nami, that despite having 41 million taxpayers in the country, compared to South Africa’s four million taxpayers, Nigeria earned far lower than what South Africa generated from Personal Income Tax.
The FIRS boss said, “Our total taxpayers today are in the region of about 41 million people and the total Personal Income Tax paid last year was less than N1trillion by 40 million people. If you also compare that with South Africa where they have a total population of about 60 million people, with just four million taxpayers, the total Personal Income Tax paid in South Africa last year is about N13trillion. You can now see that these things are not adding up.
“The number of billionaires in Lagos alone are more than the number of billionaires in the whole of South Africa but yet, what we generated as Personal Income Tax by Lagos State Government is just less than N400billion”. Nami’s revelation might just be another eye opener for the government at all levels that Nigeria has enough wealth to finance its budget and sustain its economy without borrowing.
With the nation’s over-reliance on crude oil income to fund the budget, the government may be stretching itself too far in producing enough revenues to fund essential projects. And with the growing borrowing, the future of the country is dreary. We need more investments in the non-oil sectors of the economy.
For the economy to progress and achieve greater significant growth, a reasonable level of budget execution is necessary. But if the government continues to violate existing debt laws, the 2022 budget may go through the disastrous fate of previous budgets. Also, there is a need for migration of businesses from the informal to the formal sector of the economy for easy inclusion in the tax net.
Beyond this, the government must fight against insecurity throughout the country, which hinders local and foreign investment and stabilise the exchange rate policy regime. Let it reduce unemployment and inflation rates. It should spend less on consumption and more on productive sectors of the economy.
Editorial
NCC, Save Nigerians From Exploitation
Editorial
WPFD: Nigeria’s Defining Test
Nigeria stands at a critical juncture as the world marked World Press Freedom Day (WPFD) on May 3. This annual observance is a reminder that a free press is central to democratic life, good governance, and public accountability. For Nigeria, it is also a moment for sober reflection on how far the country has come and how far it still has to go in safeguarding the independence of its media.
World Press Freedom Day exists to highlight the fundamental importance of freedom of expression and to honour journalists who risk their lives in pursuit of truth. It underscores the idea that without a free press, societies cannot function transparently, nor can citizens make informed decisions. In countries like Nigeria, where democracy continues to evolve, the observance carries particular urgency.
This year’s theme, “Shaping a Future at Peace: Promoting Press Freedom for Human Rights, Development and Security”, places journalism at the heart of global stability. It emphasises that a peaceful society cannot be built on silence, fear, or manipulated information. Rather, it depends on the free flow of accurate, timely, and independent reporting.
At its core, the theme highlights the role of journalism in fostering accountability, dialogue, and trust. These are not abstract ideals. In Nigeria, where public confidence in institutions is often fragile, the media remains one of the few platforms through which citizens can question authority and demand transparency. When press freedom declines, so too does public trust.
Journalism serves as a foundation for peace, security, and economic recovery. Countries with robust media systems tend to attract greater investment, maintain stronger institutions, and resolve conflicts more effectively. Nigeria’s economic challenges, ranging from inflation to unemployment, require open scrutiny and informed debate, both of which depend on a free press.
However, the issue of information integrity has become increasingly complex in the digital age. Artificial Intelligence (AI) and online platforms have amplified the spread of misinformation and disinformation. In Nigeria, where internet penetration has grown rapidly, false narratives can travel faster than verified facts. This makes the role of credible journalism more vital than ever.
The challenge is not only technological but also ethical. AI-driven manipulation of information threatens to distort public discourse, influence elections, and deepen social divisions. In such an environment, professional journalism must act as a stabilising force, ensuring that truth prevails over sensationalism and propaganda.
Equally troubling is the safety of journalists. Across Nigeria, reporters face growing levels of online harassment, judicial intimidation, and physical threats. Self-censorship is becoming more common, as media practitioners weigh the risks of reporting sensitive issues. This trend undermines the very essence of journalism.
A particularly alarming incident involved a serving minister in the present administration, who openly threatened to shoot a journalist during a televised exchange. Such conduct, broadcast to the public, sends a dangerous signal that hostility towards the press is acceptable. It erodes the norms of democratic engagement and places journalists in harm’s way.
This year’s theme aligns closely with the United Nations Sustainable Development Goal (SDG)16, which promotes peace, justice, and strong institutions. Freedom of expression is a cornerstone of this goal. Without it, institutions weaken, corruption thrives, and justice becomes elusive. Nigeria’s commitment to SDG 16 must therefore include genuine protection for the media.
Historically, the Nigerian press has been a formidable force. From resisting colonial rule to challenging military dictatorships, our journalists have played a central role in shaping the nation’s political landscape. Today, however, that legacy appears to be under strain, as the media operates under what can best be described as a veneer of freedom.
Beneath this facade lies a troubling reality. Journalists are routinely harassed, detained, and prosecuted for performing their constitutional duties. Reports from media watchdogs indicate that dozens of Nigerian journalists face legal threats or arrest each year, often for exposing corruption or criticising those in power.
The Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 has become a focal point of concern. Originally intended to combat cyber threats, it has increasingly been used to silence dissent. Sections 24 and 27(1)(b), in particular, have been invoked to target journalists, bloggers, and social commentators.
Although amendments introduced in February 2024 were meant to safeguard journalists, concerns persist. The law continues to be wielded in ways that stifle investigative reporting and restrict freedom of expression. Legal reforms must go beyond cosmetic changes to address the root causes of misuse.
To safeguard the future of journalism in Nigeria, decisive action is required. The Cybercrimes Act must be revisited to ensure it cannot be weaponised against the press. Law enforcement agencies must operate free from political influence, upholding the rule of law and protecting journalists’ rights. Civil society and international partners must also strengthen independent media through funding, training, and platforms for wider reach.
In this rapidly evolving world shaped by artificial intelligence and digital innovation, Nigeria faces a clear choice. It can either allow press freedom to erode under pressure, or it can champion a truly independent media landscape. The path it chooses will determine not only the future of journalism, but also the strength of its democracy and the peace it seeks to build.
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