The Presidency has stated that Nigeria should not be classified as a poor country, insisting instead that the nation’s major economic challenge lies in inequality and structural imbalances rather than a lack of wealth.
This position was presented by the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, during an interview on Channels Television on Friday, where he argued that national discourse should move away from describing Nigeria strictly in terms of poverty and instead focus on addressing income distribution gaps and systemic inefficiencies.
According to Fasua, Nigeria’s economic reality is more complex than often portrayed, noting that while poverty exists, the country also has significant internal wealth generation capacity that is not evenly distributed across the population.
“Nigeria is not a poor country, but we have inequality challenges. We must focus on bridging that gap,” he said, stressing that policy attention should be directed toward solutions rather than repeated emphasis on poverty statistics.
He further argued that continuous focus on poverty narratives risks limiting innovative thinking around economic reform. “The real question is how to solve poverty,” he added, noting that shifting the conversation is necessary to achieve meaningful progress in development planning.
Fasua pointed to recent financial activities in the banking sector as evidence of liquidity within the economy. He cited the successful recapitalisation exercise in the financial industry, stating that approximately N4.6 trillion was raised by banks, with a large portion sourced domestically.
He also referenced the performance of multinational corporations operating in Nigeria, including telecom giant MTN Nigeria, noting that a significant share of its profits continues to be generated within the country.
According to him, these indicators suggest that money circulates within the Nigerian economy, even if it is not evenly accessible to all citizens. “MTN has consistently generated about 40 percent of its profits from Nigeria. This shows there is money in the system,” he said.
However, Fasua acknowledged that Nigeria faces a dual challenge: the coexistence of wealth creation alongside widespread poverty. He explained that this imbalance reflects deep structural issues, including inequality in access to opportunities, resources, and formal economic participation.
“We may have a scenario where many people are making money, many people are poor, so we need to bridge the gap,” he said, highlighting the importance of inclusive growth policies.
A major concern raised by the presidential aide is the dominance of Nigeria’s informal economy. He estimated that about 70 percent of economic activity in the country operates outside formal regulatory and taxation systems.
According to him, this presents a significant challenge for government revenue generation and national development planning. He argued that ongoing tax reforms are designed to bring more economic activity into the formal sector.
“We also have a problem with informality,” he said. “About 70 percent of this economy is informal, and we are trying to ensure that the money that keeps escaping the system is reckoned with so that we can get the revenue to develop the country.”
Fasua called on Nigerians to support fiscal reforms, particularly those aimed at improving tax compliance and expanding the national revenue base. He maintained that broader participation in taxation would help reduce inequality and strengthen public infrastructure delivery.
“Let people pay their taxes so that we can even out the income inequality in this country,” he said.
The economic adviser also defended aspects of the Federal Government’s proposed 2026 fiscal plan, describing it as ambitious and growth-oriented. He praised what he termed the administration’s long-term economic vision, especially its focus on capital expenditure.
The 2026 budget, estimated at N68.32 trillion, has generated public debate over its scale and funding structure. Fasua, however, argued that the budget reflects a deliberate shift toward development-focused spending.
“For the first time we’re having about 50 percent capital budget,” he noted, adding that the structure indicates a government prioritising infrastructure and productive investment.
He urged Nigerians to recognise what he described as the administration’s forward-looking approach. “We should commend Mr. President for thinking big for the people of this country,” he said, referring to President Bola Ahmed Tinubu.
Addressing concerns about overlapping budgetary provisions and implementation challenges, Fasua stated that such issues are not new in public finance management. He explained that once legislative approval is obtained, implementation becomes the responsibility of relevant government agencies.
On the issue of public debt, he dismissed fears that Nigeria is excessively burdened, insisting that the country’s borrowing levels remain within manageable limits. “Nigeria is not over-borrowed… our debt is sustainably managed,” he said.
His comments come amid ongoing national debates about rising debt servicing costs, inflationary pressures, and the impact of economic reforms on household incomes. Despite these concerns, Fasua maintained an optimistic outlook on the country’s economic trajectory.
He expressed confidence that current reforms, though difficult, would eventually yield positive outcomes. “This country has potential for so long, but this is the time,” he said, adding that the reform process would not be easy but remains achievable.
“It is not going to be a walk in the park,” he concluded, “but it is doable.”
The Presidency’s position reflects a broader effort to reshape public perception of Nigeria’s economic challenges, shifting attention from poverty alone to deeper structural issues such as inequality, informality, and revenue mobilisation as key drivers of long-term development.
