Utomi slams government’s revenue fixation, warns of economic mismanagement

Pat Utomi, a political economics professor, has criticised the Nigerian federal government’s economic strategy, accusing it of prioritising aggressive revenue generation over meaningful development, an approach he says is strangling businesses and worsening the livelihoods of ordinary Nigerians.

In an interview on Channels Television’s Politics Today recently, Utomi described the government’s revenue obsession as counterproductive, arguing that the nation’s resources are being funneled into non-productive political structures instead of critical sectors like agriculture, healthcare, and education that can spur real economic growth and stability.

The political economist lamented that the government’s singular focus on increasing revenue primarily through heavy port charges, excessive taxation, and other aggressive fiscal measures has become a disincentive for entrepreneurs, traders, and importers, especially those in sensitive sectors like pharmaceuticals.

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“Ask any trader today how much they can bring through the ports,” Utomi said. “The desperation for rising revenue means that every container is being sold at about N18 million or some similar amount.”

He pointed out that this has devastating effects on industries critical to public health, such as pharmaceutical importers who operate with tight profit margins. “Many pharmaceutical importers have very thin margins on their anti-malarials and related drugs,” he noted. “When they come through the ports and get hit with taxes on each container, it means they can’t import a new set of containers of anti-malarials.”

Utomi warned that the burden of these fiscal decisions is not evenly shared, arguing that while the political elite enjoy unchecked access to state resources, the broader population suffers the brunt of the policies. “It means that while government revenues are going up and are being squandered by politicians, the Nigerian people have no possibility of a better life,” he said.

Utomi challenged the prevailing narrative that rising government revenues equate to economic progress. According to him, this is a flawed interpretation of economics. “To use revenue as evidence of progress is not to understand economics,” he declared.

He acknowledged recent reports suggesting improved economic indicators, such as the slight appreciation of the naira and claims of economic recovery. However, he dismissed these developments as superficial, arguing that they do not translate into better living conditions for the average Nigerian.

“If you are from hell to purgatory, have you been saved from damnation?” he quipped, underscoring the disconnect between official economic data and everyday reality for citizens.

Utomi advocated for a reorientation of government priorities, urging deeper investments in sectors that directly affect the people. “Food is the ultimate. When people can’t eat, anything can happen,” he cautioned, referencing the rising cost of basic commodities and growing food insecurity.

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He stressed the need to channel more public investment into agriculture to not only boost food production but also to trigger industrial activities across the value chain. According to him, Nigeria must leverage its natural endowments to develop a sustainable and inclusive economy. “We need to get the resources that are available to go directly into ramping up food first of all, and then the value chain from those factor endowments around agriculture,” he said.

In addition, Utomi called for reforms in the education and healthcare systems, noting that the long-term prosperity of Nigeria hinges on human capital development, not revenue surpluses.

His critique comes shortly after the National Bureau of Statistics (NBS) reported that Nigeria’s GDP grew by 3.13 percent in the first quarter (Q1) of 2025, a noticeable increase from the 2.27 percent recorded in the same quarter in 2024.

However, Utomi dismissed the celebration of these numbers, arguing that GDP growth is meaningless when inflation continues to erode purchasing power and when millions remain unemployed or underemployed. He insisted that metrics such as job creation, access to affordable food, and improved public services are the true indicators of economic health.

Source: Businessday.ng | Continue to Full Story…