ActionAid Nigeria Urges Government to Improve Resource Mobilisation

ActionAid Nigeria has voiced concerns about the current state of the nation, urging the federal government to take definitive actions to diversify revenue streams and enhance domestic resource mobilization.

After holding its 55th meeting, ActionAid Nigeria’s Board of Directors released a statement on Monday, expressing alarm over the nation’s current condition characterized by increasing political unrest, economic difficulties, and a significant decline in international funding.

The chair of ActionAid Nigeria’s Board of Directors, Ms. Rabi Isma, emphasized the urgency of the situation, stating that Nigeria is grappling with widespread kidnappings, extrajudicial killings, and unchecked violence in various states such as Edo, Plateau, Benue, and Niger. She highlighted the government’s failure to provide adequate security, which has jeopardized citizens’ safety and eroded trust in the state’s capacity to protect them.

Moreover, the statement condemned the political turmoil in Rivers State, citing constitutional infringements that could destabilize democratic institutions across the country. The suspension of a female senator without an independent probe into her allegations of sexual harassment against the Senate President was also criticized as emblematic of gender-based discrimination in politics.

Economically, Nigeria is facing significant fiscal pressure due to its N54.99 trillion budget for 2025. Despite the country’s challenging economic climate, banks are reporting record profits, indicating a disparity between the financial sector’s success and the stark realities faced by ordinary Nigerians. The withdrawal of over $60 billion in foreign aid has led to severe repercussions in critical sectors such as health, agriculture, and social welfare programs, exacerbating the nation’s economic crisis.

The World Bank’s Africa’s Pulse report projected a considerable rise in Nigeria’s poverty rate by 2027, underscoring the deepening economic challenges. While inflation rates have decreased on paper, the cost of living crisis persists, with soaring prices of essential goods like food, fuel, and transportation.

In a slightly optimistic light, the Board of Directors acknowledged Fitch Ratings’ recent upgrade of Nigeria’s sovereign credit rating, attributing it to improved policy credibility and ongoing reforms like exchange rate liberalization and tighter monetary policies. However, contentious issues remain, such as the removal of fuel subsidies, criticized for disproportionately affecting vulnerable groups. The government’s support for the Reserved Seats for Women Bill was praised for addressing the underrepresentation of women in politics.

The Board recommended that the President takes the lead in upholding the rule of law, especially in response to the crisis in Rivers State, where a state of emergency was unconstitutionally approved. Urgent rectification by the National Assembly—proven through a two-thirds majority vote—was deemed necessary to restore democracy’s integrity.

Moreover, the Board emphasized the need for the federal government to diversify revenue sources, implement gender-sensitive tax reforms, and combat illicit financial flows. Strengthening transparency in public finance management and prioritizing social protection programs for vulnerable populations were highlighted as crucial measures to mitigate the impact of reduced international aid.

In conclusion, local manufacturing and food production systems should be fortified to reduce dependency on external aid and ensure food security. Institutional reforms safeguarding women in politics, addressing gender-related misconduct cases, and fostering a harassment-free legislative environment were also recommended. The Board stressed the importance of conducting a thorough, independent investigation into recent sexual harassment allegations within the National Assembly to ensure accountability and justice.