States Account for 48% of Public Spending – FG

The Federal Government has disclosed that state governments account for approximately 48 percent of total public expenditure in Nigeria, highlighting the need for stronger coordination among all tiers of government to drive national development.

The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, made the statement while receiving the Minister of State for Budget and Economic Planning, Dr Doris Uzoka-Anite.

Bagudu stressed that effective collaboration between federal, state, and local governments is essential to achieving the country’s long-term development goals. He referenced discussions at the National Economic Council, which identified improved intergovernmental coordination as a key priority.

He reiterated the administration’s target of expanding Nigeria’s economy to $1 trillion by 2030, noting that sustained annual growth of about seven percent would be required to meet the objective. According to him, the upcoming National Development Plan (2026–2030) will guide policy reforms, investment priorities, and economic strategy.

Bagudu also outlined priority areas, including increased investment in security, sustained infrastructure financing, and stronger enforcement against illegal activities in the extractive sector.

Responding, Dr Uzoka-Anite emphasized the importance of private sector leadership in achieving economic expansion, stating that the majority of growth efforts should be driven by private enterprise, with government playing a supportive role. She expressed confidence that ongoing reforms under the administration’s economic agenda would help lay the foundation for long-term growth.

The ministry leadership described the resumption of the Minister of State as timely, noting that her experience across previous economic portfolios would support policy coordination and implementation efforts.