State governments now account for approximately 48% of total public expenditure in Nigeria, underscoring the critical need for stronger collaboration across federal, state, and local levels to drive the country’s economic ambitions, according to the Minister of Budget and Economic Planning, Senator Abubakar Bagudu.
Bagudu made the disclosure on Monday while welcoming the newly appointed Minister of State for Budget and Economic Planning, Dr. Doris Uzoka-Anite, who officially resumed duties at the ministry. In a statement released by the ministry’s Director of Information and Public Relations, Julie Osagie-Jacobs, Bagudu emphasized that effective policy alignment among all tiers of government is essential for achieving national development goals.
He referenced recent discussions at the National Economic Council, where stakeholders identified improved inter-governmental coordination as a top priority particularly given that states now manage nearly half of all public spending in the country.
Bagudu reaffirmed the Tinubu administration’s target of growing Nigeria’s economy to $1 trillion by 2030. He explained that this would require sustained annual GDP growth of around 7%, guided by the forthcoming National Development Plan for 2026–2030. The plan is expected to outline key policy reforms, investment priorities, and coordinated development initiatives across the federation.
As the country’s official planning authority, the Ministry of Budget and Economic Planning is tasked with preparing national development strategies, harmonizing fiscal and economic policies, advising the President, and aligning programmes at federal, state, and local levels.
The minister highlighted several urgent priorities endorsed by the National Economic Council, including:
– Increased investment in security to stabilize the country
– Sustained funding for transformative infrastructure projects
– Stronger enforcement against illegal activities in the extractive sector, especially crude oil theft and unlawful mining
Bagudu also noted progress in international partnerships, pointing to the recent elevation of Nigeria’s bilateral relationship with China to a comprehensive strategic partnership. This has already led to several cooperation agreements focused on economic development and infrastructure support.
In her response, Uzoka-Anite stressed the pivotal role of the private sector in realizing Nigeria’s growth targets. She estimated that around 95% of the country’s economic development would need to come from private sector activity, with the Federal Government contributing the remaining 5%.
“The Renewed Hope agenda must be anchored on private sector leadership to deliver sustainable and inclusive outcomes,” she said, calling for policies that enable businesses to thrive and drive job creation, innovation, and investment.
The remarks come as Nigeria continues to navigate fiscal challenges, including revenue shortfalls from oil production shortfalls and global price volatility, while pursuing structural reforms to unlock higher growth. The emphasis on inter-governmental coordination and private sector leadership reflects a growing recognition that achieving the $1 trillion economy goal will require aligned efforts across all levels of government and strong private capital mobilization.
