Fiscal management: A rescue mission in resetting a broken economy

Recently, I came across a fascinating online publication urging the Nigerian populace to have strong faith and believe in His Excellency, President Ahmed Bola Tinubu GCFR’s, current significant economic reforms, which aim to reset Nigeria’s broken economy. This statement was credited to the national ruling party.

What a heartwarming and uplifting message, especially at this critical point in our national history when the masses are beginning to lose faith in the economy, and our youths are leaving the country in droves. Job losses and unemployment rates are alarmingly high, while inflation is soaring above the roof. Food inflation is also a significant concern, and hunger is widespread. Undoubtedly, feeding three times a day feels like asking a horse to pass through the eye of a needle. Fuel scarcity persists, and accessing basic healthcare is increasingly out of reach for the common man. The purchasing power of our local currency has dwindled significantly. Poverty rates continue to skyrocket daily, alongside the rising exchange rate. Interest rates are affected as well, and accessing credit facilities from financial institutions feels as challenging as trekking from Nigeria to the U.S. barefooted. The question of what to prioritise and what to ignore remains unanswered, demanding urgent attention. These challenges epitomise the traits of a broken economy.

Triumphantly overcoming these myriad challenges requires well-thought-out and calculated strategies aimed at addressing them. These strategies include but are not limited to debt reduction schemes, poverty reduction strategies, export promotion systems, anti-corruption campaigns, human capacity building, monetary policy reform, entrepreneurial and product development, sustainability protection, infrastructural development, and, most importantly, fiscal management, which is at the center of discussions about bringing hope and resetting the broken economy.

Fiscal management examined:

Fiscal management or discipline consists of the totality of critical decision-making activities undertaken by individuals, corporations, or governments to allocate financial resources effectively and efficiently to achieve overall objectives while maintaining high levels of fiscal stability. It also encompasses measures revolving around the planning, organising, and controlling of financial regulations designed to achieve desired outcomes.

These interrelated and well-coordinated activities involve strict budgetary compliance, efficient financial reporting mechanisms, sound risk management processes, asset management, cash management, and debt management schemes. Financial analysis techniques, financial planning mechanisms, and robust internal control procedures are integral as well.

Fiscal management focuses primarily on strict expenditure monitoring and control, sound revenue generation strategies, and adherence to budgetary compliance. It is worth noting that fiscal management benefits not only individuals but also extends to corporations, non-profit organisations, governments, the public, the economy, and other relevant sectors.

Benefits:

The adoption of an adequate fiscal management technique presents numerous benefits, including the optimal utilisation of scarce resources, the promotion of financial stability, assistance in managing financial risks, and fostering accountability and transparency. Additional benefits include effective planning mechanisms, support for forward-thinking approaches, and strategic positioning. Moreover, it aids in informed decision-making and enhances long-term financial stability. It also addresses debt profile issues, promotes financial discipline, and boosts credibility ratings. Fiscal management encourages proper financial reporting, prudent asset management, supports valuable investment initiatives, and ensures holistic budget attainment. Finally, it provides strict adherence to best global practices, which, in turn, fosters good governance for the masses.

As an individual, I firmly believe that our country is abundantly blessed and endowed with human, material, and other resources that can allow us to compete favourably with the UK, the U.S., and Singapore. I am confident that if the recommended strategies are judiciously applied and closely monitored by our economic handlers, we can be assured that our joy will be full in no distant time, and our broken economy will be properly reset.

Nigeria will be great again, I echo loudly.

Kingsley Ndubueze Ayozie FCKiTI, FCA, a Public Affairs Analyst and Advocate of Good Governance, writes from Lagos.