The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has again stressed the importance of broadening Nigeria’s economic base, urging leadership at every level—federal, state, and local—to commit to bold economic diversification in the face of tough fiscal realities. As Nigeria grapples with increasing expenditure against a backdrop of low internally generated revenue (IGR) in most states, the need for action is more pressing than ever before.
At a recent retreat held at the Metropolitan Hotel in Calabar, Cross River State, RMAFC brought together policymakers and experts to tackle these urgent matters. The event, themed “Clarifying the Strategic Role of the Mobilisation and Diversification Committee and Leveraging Diversification Mandate to Drive Nigeria’s Economic Transformation,” gave participants a platform to examine current revenue strategies and brainstorm innovative approaches to foster sustainable growth.
In his address, RMAFC Chairman, Muhammed Bello Shehu—represented by Honourable Ismail Mohammed Agaka, the Federal Commissioner for Kwara State—highlighted that Nigeria’s fiscal future is at a critical crossroads. He remarked, “While the federal government faces ever growing expenditure demands, most states continue to generate insufficient revenue internally. There is an urgent call for a deliberate and data-based approach to revenue generation and economic diversification from every stakeholder.”
The retreat comes at a significant time for Nigeria and much of West Africa, as countries in the region seek to reduce their reliance on single commodities like crude oil. Nigeria, for example, has experienced volatile oil prices with huge impacts on government budgets, currency strength, and general economic wellbeing. Neighboring economies, such as Ghana, have also intensified calls for enhanced tax collection and alternative revenue streams in recent years.
Victor Eboigbe, Committee Chairman and Commissioner representing Edo State, explained the gathering’s bigger purpose: “The retreat was designed to carefully assess the committee’s performance and discuss practical, actionable strategies for economic diversification across the country that are realistic, inclusive, and responsive to our economic climate.”
A communique released at the conclusion of the retreat set out several key recommendations to chart a way forward:
- Recognising economic diversification as a priority for fiscal allocation: The committee proposed that the extent of economic diversification achieved by individual states and regions should become one of the factors considered in deciding how revenue is distributed by the federal government.
- Empowering subnationals through advocacy: The group emphasised the importance of regular zonal advocacy campaigns, working alongside the six regional development commissions under the federal government, to inform and mobilize states on diversification strategies.
- Developing a national policy on diversification: The RMAFC was tasked with preparing a unified national policy that takes into account the economic strengths and needs unique to Nigeria’s three tiers of government.
- Engagement and collaboration: Stakeholder participation was emphasized as crucial, with recommendations for the Mobilisation and Diversification Committee to consult extensively with industry, communities, financial institutions, and civil society groups to guide its policy implementation.
Among other notable recommendations were calls for increased public-private partnerships—especially for infrastructure projects that can unlock significant new sources of government revenue and create jobs. According to Lagos-based economist Dr. Abiola Popoola, “Such partnerships could rejuvenate critical sectors like agriculture, manufacturing, and digital trade, creating a ripple effect expected to benefit both urban and rural populations.”
The retreat participants also advised that governments at all levels prioritize projects with clear, high revenue and job-creation potential. Infrastructural projects inherited from previous administrations should not be abandoned; instead, they should be continued and possibly improved upon. “Infrastructure is the backbone of economic growth, and continuity ensures that public resources are not wasted,” said Abuja-based analyst Femi Olawale.
Strengthening tax systems was a focal point as well. The committee supported integrating the vast informal sector—currently estimated by the International Monetary Fund to account for more than 60% of Nigeria’s economy—into the tax net. They pointed out that through effective partnerships with banks and the wider financial sector, government authorities could improve tax collection, thereby boosting available funds for public projects without overburdening existing formal business owners or workers.
Beyond Nigeria, the issues discussed at the retreat resonate across West Africa, where dependence on commodity exports often leaves economies exposed to external shocks. According to the World Bank, economic diversification has been pivotal in stabilizing similar economies such as Botswana and Mauritius and could unlock prosperity in Nigeria and neighboring states if implemented with discipline and vision.
Still, there are challenges ahead. Many industry experts point to potential roadblocks, including policy inconsistency, weak enforcement, limited technical expertise, and resistance from vested interests. “These obstacles are not insurmountable,” noted Ghanaian policy expert Kwaku Mensah, “but strong political will and grassroots support are essential.” Community leaders present at the retreat highlighted the need for investments in capacity building at all levels and ongoing dialogue between policymakers and those on the ground.
Historical data shows that previous attempts at economic diversification in Nigeria—such as efforts to revive agriculture or promote local manufacturing—have yielded mixed results. Implementation gaps, insufficient follow-through, and underfunding have often hampered progress. To overcome this, the committee advised rebranding and reorganizing prior RMAFC programs so they are better aligned with Nigeria’s present economic circumstances and global trends.
As the country plots a new economic course, comparisons with successful diversification stories from countries like Rwanda and Morocco offer useful lessons. Morocco’s recent investments in automotive and renewable energy sectors, for instance, transformed its export earnings and employment base. Meanwhile, Rwanda’s digital services boom has drawn praise globally. These models offer a roadmap for what might be possible with the right mix of policy, investment, and public engagement in Nigeria, Ghana, and beyond.
To sum up, the RMAFC retreat has reignited conversations about Nigeria’s economic future. Collaboration across government, private sector, and communities is now seen as non-negotiable. Implementation of these new recommendations could help safeguard the nation’s fiscal health, create jobs, and support sustainable development not just for Nigeria, but as a model throughout West Africa.
What steps do you think the government should take as a priority to drive true economic diversification in your state or community? Share your thoughts below, and don’t forget to follow us for real-time updates on Nigeria’s economic reforms, business trends, and development news.
Have a story, insight, or tip about Nigeria’s evolving economy? Want your experience or community’s perspective featured? Reach out to us!
- To share or sell your story: Email [email protected]
- For general support: [email protected]
Connect with fellow readers and stay up to date on the latest by following us on Facebook, X (Twitter), and Instagram. Your perspective matters—join the conversation today!
