States account for 48% of public spending— Bagudu

THE Federal Government has said state governments account for about 48 per cent of total public expenditure in Nigeria, stressing that stronger coordination across all tiers of government will be critical to achieving the country’s economic development targets.

Minister of Budget and Economic Planning, Abubakar Bagudu, disclosed this while receiving the newly appointed Minister of State for Budget and Economic Planning, Dr Doris Uzoka-Anite, who resumed duties at the ministry yesterday.

The Director of Information and Public Relations in the ministry, Julie Osagie-Jacobs, said Bagudu emphasised the importance of effective policy coordination among federal, state and local governments in driving national development.

“The minister recalled recent discussions of the National Economic Council, NEC, which identified several key policy priorities aimed at accelerating national development, including improved coordination among federal, state, and local governments, especially since state governments account for about 48 per cent of public expenditure,” the statement read.

Bagudu also reaffirmed the Federal Government’s commitment to achieving the administration’s goal of growing Nigeria’s economy to $1trillion by 2030.

He explained that the target will be pursued through sustained economic expansion of about seven per cent annually, with the forthcoming National Development Plan covering 2026 to 2030, and expected to guide policy reforms, investment priorities, and development initiatives across the country.

According to him, the Federal Ministry of Budget and Economic Planning plays a central role in shaping the national development strategy as the country’s official planning authority.

The minister said the ministry is responsible for preparing and coordinating national development plans, harmonising fiscal and economic policies, providing policy advice to the President, and coordinating development programmes across federal, state and local governments.

Bagudu also highlighted several priority areas identified by the National Economic Council, NEC, to accelerate growth and strengthen economic management.

These, according to him, include increasing investment in security, ensuring sustained financing for transformative infrastructure projects, and intensifying enforcement against illegal activities in the extractive sector, particularly crude oil theft and illegal mining. He added that the ministry continued to coordinate international development partnerships to support Nigeria’s economic expansion.

Bagudu added that the ministry continues to coordinate international development partnerships aimed at supporting Nigeria’s economic expansion.

He noted that one of the recent milestones in this regard is the upgrade of Nigeria’s bilateral relations with China to a comprehensive strategic partnership, which had already resulted in several cooperation agreements focussed on economic development.

Uzoka-Anite, in her response, said private sector participation will be critical to achieving the country’s growth ambitions.

She stated that about 95 per cent of Nigeria’s economic development will have to be driven by the private sector, while the Federal Government will contribute the remaining five per cent.

Uzoka-Anite also urged that the administration’s Renewed Hope programme should be anchored on private sector leadership in order to deliver sustainable economic outcomes.

“I have no doubt that Mr President can achieve the $1trillion economy as he has started by laying the foundation for that to happen through the introduction of economic reforms and implementation of the National Development Plan,” she said.

She expressed appreciation to President Bola Tinubu for the opportunity to serve in different capacities within the administration, noting that she had previously served as Minister of Industry, Trade and Investment and later as Minister of State for Finance before her new appointment.

Uzoka-Anite added that she also served on several economic committees of the federal government which, she said, gave her valuable experience that would support her new role in the ministry.

The Permanent Secretary of the Ministry of Budget and Economic Planning, Dr Deborah Odoh, described the minister of state’s resumption as timely and significant for the ministry’s work.

She added that Uzoka-Anite’s insights and engagement would strengthen the ministry’s leadership team as it continued to deliver on its mandate in support of the President’s Renewed Hope Agenda.

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