Fostering self-dependency on revenue mobilization

The Chief Economist of the African Development Bank, Kevin Urama, recently discussed the importance of democratizing revenue generation at the sub-national level in Nigeria to achieve growth. Speaking with CNBC Africa, Urama highlighted the need for accountability, inclusivity, and transparency in revenue mobilization. He commended the vision of the Enugu State government to boost its GDP from $4.4 billion to $30 billion in just four years. Urama emphasized the significance of decentralizing revenue generation to promote transparency and accountability. By empowering states to mobilize revenue from trade, businesses, and natural resources within their borders, Urama believes it will lead to improved fiscal discipline and less dependence on federal allocations. This shift is essential as traditional revenue sources like oil are dwindling, necessitating a focus on new revenue streams. Enugu State's ambitious goal of increasing its GDP sevenfold presents a considerable challenge. However, Urama expressed confidence in the state's potential, citing its history as an industrial hub and abundant natural resources. He outlined a three-pronged approach focusing on peace, prosperity, and development to address economic challenges like insecurity and youth unemployment. Urama stressed the importance of boosting factor productivity to drive economic growth. By enhancing transparency and efficiency in revenue generation and harnessing the state's agricultural and human capital, Enugu State could rapidly increase its GDP. Urama estimated that with the right strategies in place, the state could quadruple its revenue generation within a short period. Governor Ifeanyi Ugwuanyi's leadership was lauded for its transformative vision and commitment to economic empowerment. Urama praised the governor for his focus on attracting investments, both foreign and domestic, to spur growth and create opportunities for the state's youth. The integration of the private sector into public initiatives was identified as a significant step towards revitalizing Enugu State's economy. In summary, Urama's assessment underscores the potential for Enugu State to achieve its ambitious economic targets by leveraging its resources and implementing effective fiscal policies. By fostering a conducive business environment and prioritizing sustainable development, the state can not only boost its GDP but also enhance job creation, security, and overall economic prosperity.