Dr Titus Okunrounmu, a former Director of the Central Bank of Nigeria (CBN), has called on the Federal Government to strategically reduce the cost of governance in 2025 in order to address rising recurrent expenditures.
In an interview with the News Agency of Nigeria (NAN) on Monday, in Ota, Ogun State, Okunrounmu emphasised that the current financial burden posed by high governance costs was placing a strain on the country’s economy.
The ex-CBN Director of Research pointed out that the Federal Government’s debt servicing had escalated sharply, from N9.8 trillion in 2023 to N12.1 trillion in 2024. He stressed that this alarming increase was due to the excessive costs tied to governance.
To mitigate the situation, Okunrounmu recommended that the government borrow only for capital expenditure projects that could generate income, thereby facilitating repayment through the proceeds from these initiatives.
He also welcomed the recent revival of the Port-Harcourt refinery, which has now begun producing fuel and other refined products.
Okunrounmu praised the resuscitation of the refinery, describing it as a significant step forward for Nigeria’s economy.
He highlighted the potential for the refinery to curb the country’s reliance on the importation of refined petroleum products, as well as its ability to generate revenue by exporting refined petrol to neighbouring West African countries.
In his advice to the Nigeria National Petroleum Corporation (NNPC) Limited, Okunrounmu emphasised the importance of maintaining the refinery to ensure that it operates at optimal capacity, thereby ensuring sustained productivity and service delivery.
The former CBN director’s comments reflect growing concerns over Nigeria’s fiscal management and its implications for economic growth.
As the government looks ahead to 2025, strategic reforms to reduce the cost of governance may become pivotal in fostering financial stability and economic progress.
