NIGERIA’S BUDGET TOO SMALL FOR ITS POPULATION, DEVELOPMENT NEEDS

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By: Fasasi Hammad

The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has said Nigeria has one of the smallest national budgets among the world’s 10 most populous countries despite its large population and significant development needs.

Bagudu made the statement on Monday in Abuja while calling for a broader national conversation on revenue mobilisation and the need to expand Nigeria’s fiscal space to finance development and achieve its long-term economic goals.

The minister spoke at the Senate Press Corps Capacity-Building Workshop, organised with the theme, “Leveraging Legislative Oversight and Media Collaboration to Safeguard the National Budget from Unlawful Insertion.”

He said the conversation around Nigeria’s national budget should begin by examining what the budget represents and what its appropriate size should be.

“I would like to say that out of the top 10 most populous countries in the world, we have the smallest national budget,” Bagudu said.

“Should we continue with a budget that leaves our populace with one of the smallest budgets, or should we consider how we can mobilise more resources?”

The minister said Nigeria’s limited fiscal space, when compared with its population and development needs, raised questions about whether the country’s current level of public spending was sufficient to achieve its development objectives.

Bagudu also urged journalists to ask critical questions and thoroughly investigate budgetary provisions rather than reaching conclusions without adequate context.

He said effective scrutiny of the national budget should go beyond identifying controversial provisions to examining the constitutional process, the rationale behind budgetary decisions and the development needs such provisions are intended to address.

The former Kebbi governor linked the issue to President Bola Tinubu’s Renewed Hope Agenda and the administration’s ambition to build a more prosperous and inclusive economy.

He noted that Agenda 2050 also provides a broader framework for decisions on revenue mobilisation and public investment.

According to Bagudu, Nigeria’s ambition to build a $1 trillion economy requires the country to confront difficult but necessary questions about how it mobilises resources and finances development.

He added that decisions on revenue, expenditure and borrowing were closely linked to public confidence, stressing that citizens’ understanding and support were important to enabling the government and National Assembly to take major fiscal decisions.

The minister also highlighted the constitutional role of the National Assembly in the budget process, noting that the legislature has ultimate authority over the national budget within Nigeria’s constitutional democracy.

He called for greater public understanding of the relationship between the Executive and the legislature in shaping the budget and encouraged the media to strengthen its scrutiny through evidence-based reporting.

On alleged budget insertions, Bagudu cautioned against assuming that every unfamiliar provision was irregular, urging journalists to investigate the origin, purpose and beneficiaries of specific provisions.

“We are dealing with human processes and human errors. Therefore, vigilance is necessary, and the media and legislative oversight should remain vigilant,” he said.

Bagudu also called for a balanced approach to budget transparency, particularly where the disclosure of sensitive information could have implications for national security or strategic interests.

While affirming the importance of transparency, accountability and the public’s right to know, he urged the media to consider the wider national interest in their reporting.

“How careful are we to ensure that, while insisting on holding public officials to account, we do not lose sight of the bigger picture?” he asked.

An analysis published by PUNCH Online in August showed that the combined budgets of Nigeria’s 36 states and the Federal Capital Territory increased by 47.5 per cent, from N27.22 trillion in 2025 to N40.14 trillion in 2026.

Despite the increase, the proportion allocated to capital projects declined from 73.24 per cent in 2025 to 64.34 per cent in 2026.

In nominal terms, however, capital expenditure rose from N19.94 trillion to N25.83 trillion during the period, indicating that the decline was in its share of total spending rather than the actual amount allocated to capital projects.

Meanwhile, the Federal Government’s 2026 budget stands at N68.32 trillion, higher than the combined budgets of the 36 states and the FCT.