Nigeria has had a long and chequered macroeconomic history. Beginning from the 1970s when oil windfalls were grossly mismanaged, the nation has over the years suffered the consequences of a series of poor economic management decisions and behavious during a prolonged absence of real fiscal rules.
The subsisting fiscal environment was generally dysfunctional, and fraught with a poor savings culture, uncoordinated borrowing, poor access to fiscal records – which where unreliable in the first place, massive corruption in public circles, poor accountability, unrealiable forecasts and a badly fragmented budgetary system whose product was used more in the breach than in its compliance.
This scenario resulted in economic volatility, inefficient public sector investments, debt overhang, poor service delivery and worsening socio-economic conditions of our citizens. With the return of civilian rule, however, the imperative of delivering qualitative and equitable democracy dividends imposed on the economy’s managers the burden of reversing this trend by initiating policies and rules that put the people and their long term interest at the centre of fiscal and public expenditure management.