How Nigeria sub-nationals can address fiscal spending

The Governorship candidate of the Action Democratic Congress for Lagos state, Funso Doherty, has highlighted the importance of transparent justifications for procurement processes in sub-national entities in Nigeria. Speaking on CNBC Africa, Doherty emphasized the need for sub-nationals to address challenges in boosting revenue and ensure fiscal prudence in a time of major cash crunch and deficit budgets. Recent events have shed light on the issue of fiscal responsibility, with controversies surrounding procurement processes and expenditure at both the state and national levels. These incidents underscore the critical need for accountability and transparency in public spending. Doherty pointed out that judicious use of public funds has historically been a challenge in Nigeria and emphasized the importance of rigorous oversight to hold government officials accountable. He highlighted the role of engaged citizens in driving improvements in governance and expenditure management. One key issue discussed was the urgency for sub-nationals and the federal government to explore ways to expand revenue sources and reduce reliance on oil revenues. Diversifying the economy has been a longstanding goal for Nigeria, but the pace and extent of diversification remain crucial questions. The interview also delved into the implications of high debt levels and the challenges they pose for fiscal flexibility and economic growth. Doherty stressed the need for decisive actions and political will to address the debt trap and create sustainable economic development. The discussion further touched on efforts to enhance tax revenue through widening the tax base and plugging existing loopholes. Doherty commended the appointment of a tax professional to lead a committee aimed at boosting government revenue through effective tax policies. The conversation also broached the topic of budgeting practices, with Doherty highlighting the importance of aligning expenditures with the country's limited fiscal space. The concept of zero-based budgeting was discussed as a potential tool for ensuring prudent financial management in a challenging economic environment. The interview concluded with an exploration of job creation strategies for Nigeria's youthful population. Doherty underscored the potential of the youth demographic as an engine for economic growth and emphasized the importance of technical and vocational education in empowering young people to contribute meaningfully to the economy. The call for inclusive economic development and leveraging Nigeria's demographic dividend through skill development emerged as key themes throughout the discussion, highlighting the critical need for strategic policy interventions to address fiscal challenges and promote sustainable growth in sub-national entities and the country at large.