Tinubu Pinpoints What Nigeria Must Urgently Review to Grow
- President Bola Ahmed Tinubu directed the ministry of finance to review all deductions and revenue retention practices by key revenue-generating agencies
- The presidential directive is said to be part of efforts to free up funds for investment and accelerate economic growth
- Amid hardship in the country, the Nigerian leader told FEC members that his administration has implemented bold and difficult reforms
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Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering public affairs and governance in Nigeria.
FCT, Abuja - Amid economic challenges, President Bola Tinubu has stressed the critical role of savings in catalysing Nigeria's investment and growth.
Speaking on Wednesday, August 13, in Abuja during the federal executive council (FEC) meeting, President Tinubu disclosed that currently, public investment as a share of gross domestic product (GDP) "stands at a low 5.0 percent, largely due to insufficient public savings."
Source: Getty Images
He pointed out that Nigeria must immediately review and optimise its savings through enhancing spending efficiency, and reviewing deductions from the federation account.
Premium Times and The Cable noted the president's remarks at the meeting.
The president said:
"Let me emphasise the critical role of savings in catalysing investment and growth. Currently, public investment as a share of GDP stands at a low 5.0 per cent, largely due to insufficient public savings.
"We must urgently review and optimise our savings. This includes: enhancing spending efficiency, and reviewing deductions from the Federation Account, such as the cost of collection by revenue agencies such as FIRS, Customs, NUPRIC and NIMASA etc."
Tinubu gives new order
Meanwhile, President Tinubu issues a new directive to the economic management team, led by Wale Edun, coordinating minister of the economy and minister of finance. The president asked them to conduct a comprehensive review of all deductions and revenue retention practices, and also present actionable recommendations to the FEC "for an optimal way forward".
Presidential spokesperson Bayo Onanuga made available the full text of the Nigerian leader's address.
The full text of President Tinubu's speech can be read below:
Renewed Hope Ward Development Programme to tackle poverty: President Tinubu in an address at the FEC meeting on August 13, 2025
Distinguished members of the Federal Executive Council, let me begin by expressing my sincere appreciation for your unwavering commitment, resilience, and hard work in supporting this administration’s reform agenda.
Together, we have implemented bold and difficult reforms that have dismantled longstanding distortions in our economy and restored policy credibility.
These reforms have:
Enhanced our economic resilience.
Restored macroeconomic stability.
Created a transparent and competitive business environment, and
Bolstered investor confidence.
As a result, our economy is now better positioned to attract both domestic and foreign private investment, which is critical to stimulating sustained growth, creating decent jobs, and lifting millions of Nigerians out of poverty.
Renewed Hope Agenda: A $1 Trillion Economy by 2030
Our Renewed Hope Agenda remains focused on achieving a $1 trillion economy by the year 2030.
To realise this vision, we must now accelerate our efforts to achieve a minimum growth rate of 7.0 per cent by 2027.
This is not just an economic target; it is a moral imperative. Stimulating higher growth is the only sustainable path to solving the poverty challenge in Nigeria.
The recent IMF Article IV Report published in July 2025 also affirms this trajectory and underscores the importance of investment-led growth.
The Renewed Hope Ward Development Programme
In line with our commitment to inclusive development, I recently launched the Renewed Hope Ward Development Programme-a ward-based initiative covering all 8,809 wards across the 774 local government areas in Nigeria.
This programme is close to my heart. It is designed to empower active grassroots economic players, using a micro-level approach to tackle poverty. We aim to bring sub-national governments and private sector partners on board to ensure efficient and impactful implementation.
Collaboration with States and Local Governments
Last week, I addressed the National Economic Council and urged our Governors to accelerate growth by:
Prioritising productivity-enhancing investments,
Strengthening food security, and
Deepening collaboration with local governments.
These efforts are essential to fully addressing the poverty challenge and ensuring that no Nigerian is left behind.
Savings and Investment: Catalysts for Growth
Let me emphasise the critical role of savings in catalysing investment and growth. Currently, public investment as a share of GDP stands at a low 5.0 per cent, largely due to insufficient public savings.
We must urgently review and optimise our savings. This includes:
Enhancing spending efficiency, and reviewing deductions from the Federation Account, such as the cost of collection by revenue agencies such as FIRS, Customs, NUPRIC and NIMASA etc.
There is also the need to reassess the 30 per cent management fee and the 30 per cent frontier exploration deduction by NNPC based on the Petroleum Industry Act
We must optimise every available Naira to sustain our momentum and finance our growth trajectory-especially in a time of global liquidity constraints.
Directive to the Economic Management Team
Accordingly, I am directing the Economic Management Team, chaired by the Minister of Finance and Coordinating Minister of the Economy, to:
Conduct a comprehensive review of all deductions and revenue retention practices, and present actionable recommendations to this Council for an optimal way forward.
Distinguished members of this accomplished Federal Executive Council, the task ahead is great, but so is our resolve.
Let us continue to work together with unity of purpose, guided by the Renewed Hope Agenda, to build a prosperous, inclusive, and resilient Nigeria.
Thank you.
Source: Facebook
Economy under Tinubu in good condition
Earlier, Legit.ng reported that the presidency subtly criticised some "politicians desperate for power" for downplaying President Tinubu's "achievements".
In a post by Bayo Onanuga, one of the three presidential aides, the presidency asserted that "we must acknowledge the positive transformation taking place" in the economy.
The cryptic jibe by Onanuga comes as opposition figures unite under the umbrella of the African Democratic Congress (ADC) coalition.
Source: Legit.ng
