PROFESSOR of political economy, Pat Utomi, has criticised the federal government’s economic direction, accusing it of prioritising revenue generation at the expense of real economic growth and the well-being of ordinary Nigerians.
Appearing on Channels Television’s Politics Today on Friday, August 1, Utomi said the government’s aggressive pursuit of revenue is having negative consequences on the broader economy, particularly for small businesses and consumers.
He argued that government spending is heavily skewed in favour of the political elite rather than the productive sectors that could boost growth and improve living conditions.
“Most non-productive sectors, the political class, for example, and 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.
Utomi warned that the current revenue strategy, especially import taxes and port charges, is making it increasingly difficult for traders and importers to survive.
“Ask any trader today how much they can bring through the ports. The desperation for rising revenue means that every container is being sold at about N18 million or some similar amount,” he said.
“Many pharmaceutical importers have very thin margins on their anti-malarials and related drugs.
“When they come through the ports in this desperation for revenue and get hit with tax on each container, it means they can’t import a new set of containers of anti-malarials,” he added.
Utomi argued that while official revenue figures may be rising, the benefits are not reaching the common people.
He added, “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 also dismissed claims that the economy is recovering, arguing that a temporary stabilisation of the naira means little if inflation continues to erode people’s incomes.
He likened the current situation to moving from ‘hell to purgatory,’ suggesting that it was far from real salvation.
“If you are from hell to purgatory, have you been saved from damnation?” he asked while dismissing suggestions that the economy is on the mend,” he added.
Utomi maintained that real economic progress must be assessed through metrics like job creation, access to essential goods, and improved living standards.
He warned that widespread hunger could lead to unrest and instability.
“Food is the ultimate. When people can’t eat, anything can happen,” he added.
Utomi urged the government to invest more in agriculture, healthcare, and education to build a resilient and inclusive economy.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M