States Responsible for 48% of Public Spending, Minister Says

The Federal Government has disclosed that state governments account for about 48% of Nigeria’s total public expenditure, underscoring the need for stronger coordination across all tiers of government.

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, made the remark while welcoming the new Minister of State for Budget and Economic Planning, Dr Doris Uzoka-Anite, at the ministry in Abuja.

Bagudu stressed that effective policy alignment between federal, state, and local governments is critical to achieving national development goals.

“State governments account for about 48 per cent of public expenditure,” he noted, citing discussions at the National Economic Council.

He reaffirmed the administration’s target of growing Nigeria’s economy to $1tn by 2030, through sustained annual growth of about 7%, guided by the forthcoming National Development Plan (2026–2030).

Priority areas include investment in security, financing transformative infrastructure, and tackling illegal activities in the extractive sector such as crude oil theft and illegal mining.

Bagudu also highlighted Nigeria’s upgraded bilateral ties with China, which have yielded new cooperation agreements.

Responding, Uzoka-Anite emphasised the role of the private sector, saying: “About 95 per cent of Nigeria’s economic development will need to be driven by the private sector, while the Federal Government contributes the remaining five per cent.”

She urged that the Renewed Hope programme be anchored on private sector leadership, adding that President Tinubu had already laid the foundation for achieving the $1tn economy through reforms and the National Development Plan.

Permanent Secretary Dr Deborah Odoh described Uzoka-Anite’s resumption as timely, noting that her experience across economic committees would strengthen the ministry’s leadership team in delivering on the President’s agenda.