BUDGIT URGES FG TO ENSURE ECONOMIC REFORMS DELIVER REAL RELIEF FOR NIGERIANS

Civic-tech organisation BudgIT has called on the Federal Government to ensure that Nigeria’s ongoing economic reforms translate into measurable improvements in the daily lives of citizens, warning that stronger government revenues alone do not necessarily mean that Nigerians are becoming better off.

The organisation made the call in its assessment of the impact of the government’s economic policies, noting that although states have recorded a significant increase in revenue, households continue to contend with high food prices, expensive transportation and rising living costs. BudgIT argued that the success of economic reforms should ultimately be judged by the extent to which ordinary Nigerians experience improved purchasing power and better living conditions.

According to the organisation, revenue accruing to state governments rose substantially from ₦4.8 trillion in 2022 to ₦15.5 trillion in 2025. However, BudgIT cautioned against interpreting the sharp increase as automatic evidence of stronger fiscal capacity or an improvement in the standard of living, stressing that inflation and other economic pressures have continued to reduce the real value of available resources.

BudgIT also drew attention to the persistent pressure on food prices, citing a food inflation rate of 20.31 per cent recorded in July. The organisation said the development continues to place considerable pressure on household budgets, particularly for Nigerians who spend a large proportion of their income meeting basic food and other essential needs.

The group further highlighted the increase in petrol prices as another major factor affecting the cost of living. It noted that petrol, which sold for about ₦617 per litre in July 2023, had risen to approximately ₦1,345 per litre in some parts of the country. BudgIT explained that the consequences of higher fuel prices extend beyond the filling station, as increased energy and transportation costs eventually feed into the prices of food, goods and services.

The organisation argued that higher fuel costs can also increase the expenses faced by businesses, manufacturers, transport operators and other economic actors. As operating costs rise, businesses may transfer part of the additional burden to consumers, further reducing household purchasing power and making it more difficult for citizens to cope with the broader cost-of-living crisis.

BudgIT also identified the depreciation of the naira and the country's growing debt obligations as factors complicating the government's fiscal position. According to the organisation, increases in nominal revenue figures must therefore be considered alongside the rising cost of running government and the declining purchasing power of the currency.

It stressed that economic reform should not be evaluated solely through indicators such as increased revenue collection or headline economic growth. Instead, the organisation said the reforms should produce visible improvements in areas that directly affect citizens, including food affordability, transportation costs, household incomes, business operations and access to essential services.

BudgIT's position comes amid the Federal Government's continued defence of its economic policies and claims that the reforms are gradually placing Nigeria on a stronger path for sustainable growth. While the government and ruling party have pointed to improving economic indicators as evidence of progress, BudgIT's assessment highlights the gap that can exist between macroeconomic improvements and the experiences of ordinary households.

The organisation therefore urged the Federal Government to focus more strongly on converting increased public revenues and economic gains into tangible benefits for Nigerians. It maintained that the ultimate measure of successful reform should be whether citizens can afford basic necessities, businesses can operate more sustainably and households experience a meaningful improvement in their economic circumstances.

BudgIT's warning underscores the continuing challenge facing policymakers: ensuring that efforts to stabilise and expand the Nigerian economy are accompanied by policies capable of easing the immediate financial pressure confronting citizens.