The Vice President, Kashim Shettima, and a former Director-General of the Budget Office, Ben Akabueze, have called for urgent reforms to Nigeria’s budgeting system, warning that weak alignment with development plans continues to undermine growth and service delivery.
They spoke on Tuesday at a two-day National Policy Dialogue in Abuja, organised by the National Assembly Joint Committee on National Planning and Economic Development.
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The forum with the theme: “The Imperatives of National Development Plan for Effective Budgeting System and Sustainable Growth Of the Nigerian Economy,” focused on strengthening the link between national development plans and annual budgets to drive sustainable economic growth.
Represented by the Special Adviser to the President on Economic Affairs, Tope Fasua, the vice president said Nigeria must rethink its budgeting approach to accelerate development and improve living standards.
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He said the dialogue was timely, as the government seeks to better integrate long-term development plans with annual fiscal frameworks.
Mr Shettima said budgets should go beyond tracking economic growth and instead reflect measurable improvements in citizens’ welfare, including poverty reduction and rising per capita income.
He also defended the expansion of the 2026 budget to about ₦68 trillion, noting that budgeting should reflect national ambition rather than be constrained by past limitations.
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According to him, recent revenue reforms introduced under President Bola Tinubu have begun to improve government earnings through better fiscal controls and technology-driven systems. He expressed optimism that revenue performance would strengthen in the coming years.
The vice president added that fiscal policy measures, including reductions in tariffs on essential raw materials and the removal of duties on items such as pharmaceuticals, machinery and manufacturing equipment, were aimed at boosting productivity and easing pressure on citizens.
“The usual refrain about revenue generation has been well addressed by Mr. President’s Acts on Revenue Reforms, which have kicked in since January 2026, with great promise. Many institutions have become fiscalised. Many are leading to a decline,” he said.
He stressed that economic planning remains central to the administration’s agenda, noting that existing frameworks such as the Medium-Term Expenditure Framework and national development plans must be strengthened to deliver tangible outcomes, including progress on key indicators under the Sustainable Development Goals.
In his presentation, Mr Akabueze said Nigeria’s persistent failure to align budgets with development plans has resulted in poor outcomes, citing the existence of more than 56,000 abandoned projects across the country.
He described the situation as evidence of a systemic disconnect between planning and implementation, arguing that budgets should serve as a “compass” directing resources to priority areas.
“This is without any doubt at all a symptom of failure in linking our budgets to our plans and therefore development outcomes. A budget should be the compass that directs resources toward development priorities,” he said.
According to him, the country must shift from a focus on expenditure to a results-driven budgeting system that prioritises development outcomes.
Mr Akabueze identified the absence of a comprehensive legal framework guiding the budget process as a major challenge. He said current constitutional provisions are vague and do not clearly define timelines, roles or responsibilities for the executive and legislature, contributing to recurring conflicts and inefficiencies.
He noted that although the National Assembly passed a budget reform bill during the 9th Assembly, it was not signed into law before the end of the administration of former President Muhammadu Buhari.
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He argued that enacting a budget law would institutionalise clear procedures, improve discipline and enhance accountability in public finance management.
Mr Akabueze also highlighted weak institutional linkages between national plans and budget allocations, describing it as a structural flaw that continues to hinder effective implementation of development priorities.
He urged policymakers to adopt reforms that would strengthen coordination, enforce fiscal discipline and ensure that public spending delivers measurable impact on economic growth and citizens’ welfare.
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