The Director-General of Nigeria\u2019s Budget Office of the Federation, Mr. Tanimu Yakubu, says that President Tinubu\u2019s economic reforms, popularly known as Tinubunomics, are never intended to deliver \u201cinstant abundance\u201d.<\/p>\n
Yakubu stated in a statement titled \u2018Tinubunomics and the Arithmetic of Illusion\u2019 and released on Sunday in Abuja that much of the criticisms against the reforms were built on misleading arithmetic rather than sound economic analysis.<\/p>\n
\u201cA striking feature of Nigeria\u2019s current economic debate is the enthusiasm with which huge numbers are circulated and the casualness with which there are assembled.<\/p>\n
\u201cThis is not an economic analysis. It is an arithmetic illusion,\u201d he said.<\/p>\n
Yakubu explained that many viral critiques failed to distinguish between revenue, cash and financing, as well as between federation-wide collections and actual Federal Government budgetary resources.<\/p>\n
\u201cThese are not technicalities. There are the foundation of public finance,\u201d he said.<\/p>\n
According to him, borrowing is often wrongly treated as income, while federation revenues are frequently presented as if there were entirely available to the Federal Government.<\/p>\n
\u201cRevenue is not the same as cash available to the Federal Government. Borrowing is not income; it is financing and creates future obligations.<\/p>\n
\u201cFederation receipts are not equivalent to what the Federal Government can spend,\u201d Yakubu explained.<\/p>\n
He said that critics routinely aggregate tax collections, oil revenues, customs receipts, borrowing and subsidy savings into large headline figures, then question how such sums were spent.<\/p>\n
\u201cThe result is a dramatic number \u20a6150 trillion, \u20a6170 trillion, \u20a6180 trillion, followed by the question: where did the money go?<\/p>\n
\u201cThe answer is straightforward: much of it never existed in the form being implied,\u201d he said.<\/p>\n
Yakubu explained that fuel subsidy removal did not generate a pool of discretionary cash, but merely closed longstanding fiscal leakages.<\/p>\n
\u201cSubsidy reform does not conjure idle cash. It closes a hole.<\/p>\n
\u201cThe fiscal benefit appears gradually through reduced deficit pressure, improved budgeting discipline and targeted support, not through sudden spendable savings,\u201d he said.<\/p>\n
On public debt, he said that much of the recent increase in naira-denominated debt resulted from exchange-rate revaluation of existing external obligations, not fresh borrowing.<\/p>\n
\u201cWhen the exchange rate adjusts, the naira value of dollar-denominated debt rises automatically.<\/p>\n
\u201cTreating this accounting effect as new borrowing is a category error,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Director-General of Nigeria\u2019s Budget Office of the Federation, Mr. Tanimu Yakubu, says that President Tinubu\u2019s economic reforms, popularly known as Tinubunomics, are never intended to deliver \u201cinstant abundance\u201d. Yakubu stated in a statement titled \u2018Tinubunomics and the Arithmetic of Illusion\u2019 and released on Sunday in Abuja that much of the criticisms against the reforms […]<\/p>\n","protected":false},"author":1,"featured_media":18132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":4,"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_comment_section":"1","number_popup_post":"1","show_post_related":"1","show_inline_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","source_name":"APA News","subtitle":""},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[32,27],"tags":[1433,175,4754,4755],"class_list":["post-19198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-west-africa","tag-bola-ahmed-tinubu","tag-nigeria","tag-tanimu-yakubu","tag-tinubunomics"],"_links":{"self":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/19198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/comments?post=19198"}],"version-history":[{"count":1,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/19198\/revisions"}],"predecessor-version":[{"id":19199,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/19198\/revisions\/19199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media\/18132"}],"wp:attachment":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media?parent=19198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/categories?post=19198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/tags?post=19198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}