Aviator highlights gains of Federal Govt economic reforms

 

Aviator  highlights gains of Federal Govt economic  reforms 

An economic strategist in the aviation sector and former Rector of the Nigerian College of Aviation Technology (NCAT), in Zaria, Kaduna State, Captain Samuel Caullcrick   has enumerated the gains of the economic reforms initiated in the last few years by the Federal Government, describing them as  lifeline  that needs to be consolidated ,  in the broader move to bolster economic development for the country.

Speaking in an interview, the former pilot with the defunct Nigeria Airways Limited, said since President Bola Ahmed Tinubu assumed the reins of leadership over three years ago , the administration has embarked on a series of economic reforms. 

He specifically listed the new tax Act, which is the engine of the current reforms , driving overhaul of the country's economy . But, he, however , observed that despite the quick gains of the new tax Act, compliance still remains a major issue requiring onboarding by all players.

Captain Caulcrick said the new tax Act , which started as a seismic shift , is pushing the government from the tilt of borrowing to taxation , with interest rates and inflation recalibrating downwards.

He said the effects of the reforms have translated to less crowding out of the private sector by public borrowing , with information pointing to some forms of re- engineering.

Referencing recent data from the Central Bank of Nigeria (CBN), Caulcrick said credit to Nigeria's private sector is expanding. He said credit to the private sector as at April 2026 moved to the neighbourhood of N80.59 trillion as baseline, increasing to over N83.43 trillion in July 2026, with growth figures of over N2.84 trillion within  three months representing 3.52 percent.

According to the airline pilot and aviation industry strategist, the year on year growth moved from N76.72 trillion in  July 2025 to  plus N6.70 trillion , representing 8.74 percent.

Caulcrick said the key trends indicate that the strongest jump occurred between May to June 2026 resulting in additional N2.22 trillion. He said there was a moderate climb from June to July 2026 resulting in additional N171.80 billion or zero point twenty one percent.

He said : " The moderation in July may reflect banks repositioning after the June surge or early impact of tighter monetary stance . But, the three month and year on year trend is clear ; ;ending to business is rising."

He said the positive signals the economic reforms are beginning to signpost indicates that net domestic credit fell to N117.35 trillion in July from N123.29 trillion in June. Caulcrick said the dip amounted to N5.94 billion , representing minus 4.82 percent in one month.  He said government credit fell from N40.03 trillion in June to n33.92 trillion in July , translating into a  dip of N6.11 trillion.

The pilot said : " Government is borrowing less from the domestic system. That frees up bank balance sheets for the public sector . This is exactly what the tax Act was designed to do , re- engineer revenue . More tax , less debt. The evidence suggesting that the reforms of the Tinubu administration is working points to the fact that for years, the cycle was dotted by  high deficit, heavy government borrowing, high interest rates, banks preferring Federal Government bonds , and the private sector starving.

"But, the emerging dynamic reveals that there is high tax revenue, less government borrowing, lower interest rates , banks now lending to businessesdata   , there is a window for more investment and jobs creation. "

Caulcrick , however, said the current harvest of benefits from the Tinubu administration's economic reforms could be sustained for economic re- engineering , and not just for fiscal adjustment.

He said data for April to July 2025 shows that the mechanics are working, with government borrowing down N6.1 trillion in one month, private credit going up by N2.84 trillion in three months and net domestic credit down by N5.4 trillion .

The airline economist / strategist concluded : "The tax Act's intent is playing out . Fiscal consolidation without killing growth by shifting the funding burden away from debt. The next step is a two fold strategy. We have to look at the cost of credit. Will lower government borrowing actually translate to single digit lending rates? We have to look at the quality of credit. Which sectors are getting the N83.43 trillion ? Manufacturing, agriculture and export must lead. The scorecard is moving. But, revenue reforms must be matched with productivity reforms , or we will have cheaper money with nowhere productive to go."