According to the world bank, The Government of Nigeria avoided a fiscal cliff by
implementing bold reforms, including ending the gasoline (premium motor spirit, PMS)
subsidy, and shifting to a unified, market-reflective foreign exchange (FX) rate. These
essential reforms entail painful adjustments. To reap the benefits of these bold reforms
and difficult but necessary policies now underway, it is important that sub-nationals begin
to judiciously utilize every savings and revenues that would accrue from these reforms in
order to ensure that the benefits of these reforms will, to a large extent be felt by their
citizens. It has become imperative for sub-nationals to figure out ways of improving
revenue generation, expenditures controls and plugging several levels of leakages in the
current system of governance in the country. The current economic uncertainties have
made it inevitable for sub-nationals to develop strategies that will assist in ameliorating
the negative impact on the state’s ability to perform its responsibilities.
