- Demand bold global, domestic reforms
From Juliana Taiwo-Obalonye, Abuja
Ahead of Nigeria’s participation in the Fourth International Conference on Financing for Development (FfD4) scheduled for June 30 to July 3rd in Seville, Spain, government officials and civil society leaders have highlighted that the country’s main challenge is not the absence of development frameworks, but rather the failure to effectively implement them due to deep-rooted systemic problems.
This was made known at a one-day consultation meeting in Abuja on Tuesday, where stakeholders highlighted that corruption and weak public financial management systems continue to undermine Nigeria’s ability to mobilize and deploy resources efficiently.
They also listed inadequate budgetary allocations and poor execution of approved budgets further exacerbate the problem, while the lack of transparent and competitive procurement processes leads to stalled or failed projects. Compounding these issues is the reliance on outdated or non-existent development data, which hampers accurate monitoring, planning, and accountability.
In a newly released report titled “Financing for Development in Nigeria: Sectoral Context and Insights for the Fourth International Conference”—an advocacy position paper developed by the Civil Society Legislative Advocacy Centre (CISLAC), in partnership with Oxfam in Nigeria, Christian Aid, International Budget Partnership, Tax Justice & Governance Platform, Connected Development, and other key partners under the Africa Agenda on Financing for Development (Agenda Afrique), the Nigerian CSOs strongly advocated for transformative reforms at the global level and immediate domestic measures to tackle the ongoing financing difficulties confronting the Global South.
The report provides a sobering analysis of Nigeria’s development trajectory, warning that without significant and timely reforms, the country may face prolonged economic and social challenges that could hinder its progress. “Nigeria faces a multidimensional financing gap, driven by underperforming domestic resource mobilization, inequitable global financial rules, and increasing vulnerability to climate change.”
The report noted that critical sectors such as education, health, agriculture, and climate resilience remain chronically underfunded. “Education spending falls below UNESCO benchmarks, health expenditure remains under 4% of GDP, and the country loses over $18 billion annually to illicit financial flows,” the document states. “Meanwhile, Nigeria’s debt service-to-revenue ratio has now exceeded 70 percent, leaving little room for investment in people.”
The report also reiterated that while international frameworks such as the African Union’s Agenda 2063, ECOWAS Vision 2050, and the United Nations Sustainable Development Goals (SDGs) offer a shared vision for progress, the real struggle lies in resource mobilization. “The issue is not a lack of frameworks, but rather a lack of effective implementation due to several core problems,” the report asserts, citing corruption, poor budget implementation, outdated development data, and weak public financial management systems as recurring challenges.
The report further lamented that most Nigerian states do not have measurable development blueprints, making it difficult to track progress or attract meaningful investments. “Without decisive and deliberate efforts to bridge these financing gaps at both national and sub-national levels, Nigeria will continue to fall behind,” the document warns.
Nigeria is also using the platform of the upcoming FfD4 to call for major reforms in the international financial architecture. The country advocates for changes to global tax rules, easier access to climate finance, and new concessional financing frameworks that reflect the needs of countries with large populations living in poverty. “We urge the international community to prioritise loss and damage financing, equitable access to green investments, and reform of Special Drawing Rights (SDRs) to better support middle-income countries carrying high poverty burdens,” the report adds.
On the domestic front, the report outlines a range of policy proposals to enhance Nigeria’s financial capacity. These include adopting digital tax systems for fair taxation, simplifying trade processes to drive industrialisation, launching anti-corruption and asset recovery campaigns, and establishing development finance facilities to de-risk private investment in infrastructure and social services. It also calls for the institutionalisation of peer learning platforms to encourage innovation in sub-national financing strategies.
The report draws urgent attention to Nigeria’s worsening brain drain crisis. “The continued migration of Nigeria’s skilled workforce, especially young professionals, is directly linked to the lack of inclusive economic opportunities at home. If we fail to invest in youth-centred policies and job creation, our best minds will continue to seek prosperity elsewhere.”
As the world gears up for FfD4, Nigeria is positioning itself to take a leadership role in shaping the future of global development finance. The report concludes with a call to action: “This moment is pivotal. As the global community gathers to renew its financing commitments, Nigeria stands ready to champion equity, accountability, and inclusion in the international financial system. The upcoming FfD4 conference presents a critical opportunity to reshape global financing and unlock the investments required for a just and resilient future.”