Tinubu can mobilise revenue to reduce borrowing – WAIFEM

The West African Institute for Financial and Economic Management (WAIFEM) has told the international community that President Bola Ahmed Tinubu has the capacity to address the nation’s revenue challenges.

Director General of WAIFEM, Dr Baba Miusa gave the assurance during a podcast organised by the Potomac Group in Germany.

Musa admitted that many African governments, including Nigeria have revenue challenges.

According to him: “What we have seen in the last two years if I can be very specific, is that the net financing in most of the countries appear to be negative now which means that countries will have to find a way of mobilizing more resources to be able to fund their budget”.

WAIFEM’s confidence in Tinubu’s ability to pull resources together to fund his government’s programmes and projects, Musa said, is hinged on Tinubu’s antecedence.

According to him: “He was judged as one of the best governors that built infrastructure and that also made Lagos to be the highest revenue mobilizer in terms of domestic revenue mobilization which has been a very serious and critical issue for Nigeria”.

He added: "Tinubu has a good track record so I believe that with a good cabinet, they will support him and he will move Nigeria forward. We see a bright future coming for the country, I do hope also the fiscal situation will improve”.

Dr. Baba Musa described as unacceptable, Nigeria’s 6.5 percent revenue to Gross Domestic Product (GDP). “For Nigeria I think it is an unacceptable situation to have a revenue to GDP of 6.5 percent.

“If he can raise it to a little bit above 10 percent I think the need to borrow will drastically reduce and he will be able to have enough resources to invest in the country and of course service the existing debt,” he said.

He appealed to Western countries to engage with African countries “and look at the critical needs of Africa and find a way of assisting Africa to finance their infrastructural need”.