Nigeria's Deputy Speaker Warns Economic Sovereignty Hinges on Domestic Revenue Mobilization
Deputy Speaker Benjamin Kalu emphasized that African nations, particularly Nigeria, cannot achieve economic independence without strengthening domestic revenue collection, as President Tinubu separately urged governors to prioritize youth-focused economic policies.
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Nigeria's Deputy Speaker of the House of Representatives, Benjamin Okezie Kalu, has issued a stark warning that African countries will remain economically vulnerable without developing robust domestic revenue systems, marking a shift in legislative focus toward fiscal self-reliance amid persistent budget deficits across the continent.
Speaking on economic sovereignty, Kalu emphasized that dependence on foreign aid and politically conditional support undermines national autonomy, according to statements reported by Vanguard News. The call comes as Nigeria grapples with a fiscal deficit projected at 4.78% of GDP for 2025, according to the Federal Ministry of Finance's budget framework, with debt servicing consuming approximately 73% of government revenue in recent quarters.
Revenue Mobilization Challenge
Nigeria's tax-to-GDP ratio remains among the lowest globally at approximately 10.86%, significantly below the African average of 16.5% and the OECD benchmark of 34%, according to recent IMF assessments. The Central Bank of Nigeria reported that federation account allocations reached ₦1.98 trillion in January 2026, with oil revenue contributing 58% despite volatility in global crude prices.
"African countries cannot achieve economic sovereignty without a robust domestic revenue base," Kalu stated, according to Vanguard News, urging nations to reduce reliance on external financing that often comes with policy conditionalities. The deputy speaker's remarks align with broader continental discussions at the African Union level regarding fiscal independence and sustainable development financing.
The Nigerian government has implemented several revenue enhancement measures, including the Petroleum Industry Act reforms and proposed tax administration reforms currently before the National Assembly. However, collection efficiency remains challenged by informal sector dominance, which accounts for approximately 65% of economic activity but contributes minimally to tax revenues, according to National Bureau of Statistics data.
Youth Economic Inclusion
Complementing the revenue sovereignty discussion, President Bola Tinubu separately urged state governors to create economic opportunities for young Nigerians through targeted policies addressing poverty and unemployment. Speaking at an interfaith breaking of fast ceremony at the Presidential Villa, Tinubu emphasized the need for governors to "let the young breathe" by introducing measures that directly impact disadvantaged populations, The Whistler reported.
The president's appeal comes against a backdrop of youth unemployment estimated at 42.5% by the National Bureau of Statistics, with underemployment affecting an additional 21% of the working-age population. The federal government has launched several youth-focused initiatives, including the Nigeria Youth Investment Fund with ₦110 billion allocation and the Renewed Hope Infrastructure Development Fund targeting job creation.
Nigeria's economic reform agenda under the Tinubu administration has focused on subsidy removal, foreign exchange liberalization, and fiscal consolidation. The naira has stabilized around ₦1,470 to the dollar at the Nigerian Autonomous Foreign Exchange Market following initial volatility, while inflation remains elevated at 29.6% year-on-year as of January 2026, according to NBS data.
Fiscal Policy Coordination
The convergence of legislative emphasis on revenue mobilization and executive pressure for inclusive growth signals potential shifts in Nigeria's fiscal federalism framework. State governments collectively generated ₦2.43 trillion in internally generated revenue during 2025, representing a 17% increase from the previous year, according to the National Bureau of Statistics, though significant disparities persist among states.
The Federal Inland Revenue Service has projected tax revenue of ₦19.4 trillion for 2026, requiring improved compliance and administrative efficiency. Recent data from the Nigeria Customs Service shows import duty collection reached ₦2.1 trillion in 2025, up 23% year-on-year, driven by naira depreciation and increased trade volumes.
Economic analysts note that achieving revenue sovereignty requires comprehensive reforms beyond collection mechanisms, including addressing structural constraints such as energy infrastructure deficits, security challenges affecting agricultural productivity, and regulatory bottlenecks constraining private sector growth. The World Bank estimates Nigeria requires annual infrastructure investment of $100 billion to achieve sustainable development targets, far exceeding current fiscal capacity.
As African nations navigate global economic headwinds including tightening monetary conditions in developed economies and commodity price volatility, the emphasis on domestic resource mobilization reflects growing recognition that sustainable development financing must increasingly rely on internal revenue generation rather than external borrowing or aid dependency.