By Gloria Ikibah
Vice President Kashim Shettima has called for sweeping reforms to Nigeria’s budgeting framework, warning that the country must adopt a more realistic and development-driven approach to public spending.
Speaking at a two day National Policy Dialogue organised by the National Assembly Joint Committee on National Planning and Economic Development with the Theme: “The Imperatives of National Development Plan for Effective Budgeting System and Sustainable Growth Of the Nigerian Economy”, which began in Abuja on Tuesday,the Vice President stressed the need to align annual budgets more closely with long-term development plans in order to achieve sustainable growth. 
Shettima who was represented by his Special Adviser on Economic Matters, Tope Fasua, highlighted the importance of rethinking how budgets are designed and implemented, noting that the country’s development ambitions depend heavily on a more coherent planning structure.
The event brought together policymakers and experts to examine how Nigeria can accelerate progress through better integration of planning and budgeting.
He stressed that the focus of the discussions was to find practical ways of linking short-term fiscal decisions with medium- and long-term national priorities.
He said, “t the very time, it was a very important topic for the moment and for the time to come in view of President Tinubu’s great vision for the people of Nigeria, according to the renewed agenda of Mr. President.
“Also, it’s asked, how can our budgets be impacted more positively by these plans and how do we institute a path towards sustainable growth, which not only focuses on the annual trajectory of our domestic product GDP, but also focuses on the improvement of standards of living of our people as measured by reduction in poverty rates and the rise of per capita income.
“This is an apt moment to echo the thoughts of President Bola Ahmed Tinubu, and the Minister, the Minister of Budget and Planning, to the extent that our budgets should not only be people-focused. But our budgets should actually be larger than they are presently. This informed the recent adjustment to the 2026 budget, fiscal budget, by about 10 trillion line, to taking the sum to 68 trillion”.
According to the Vice President some critics, have opined that Nigeria should have a much smaller budget, adding that “they need to be reminded that budgeting is not a process of reviewing past shortcomings and capitulating to limitations, but a process by which Nigeria documents its greater future and challenges itself to do even better than the past.
“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 fiscalized. Many are leading to a decline. Many institutions have become fiscalized. Many are leading to a better capture of revenues that would have otherwise been lost to government.
“Technology has also been deployed to get to where human beings need to go. And so we believe that revenue numbers for 2026 and beyond will paint a positively different picture. Indeed, we must also recognize the recent Fiscal Policy Measures, (FPMs), which were articulated by the Office of the Minister of Finance and Foundation Management. Nor is it a symbol of the beneficial and positive impact of high-quality business on the economy”.
He further stated that many tariffs on essential raw materials and other similar products were reduced to the benefit and further benefit of the citizenry tariffs on essentials, raw materials and other similar products were reduced adding that Duty of pharmaceuticals, fabric, machinery, and some specific manufacturing equipment have also been removed with a view to encouraging higher productivity in critical sectors.
“This deft move signals that the Tinubu government greatly cares for the people of Nigeria, and there is so much more to come. Economic planning is a national imperative, and President Tinubu is a great believer in this idea, not necessarily in the rigidities and strictures reminiscent of Soviet-era economics, but in a more nuanced and data-driven manner, which quickly distills into the economic well-being of the people.
“Currently, our budgets are being guided by the Medium-Term Expenditure Framework (MTEF) as well as the national development plans. These plans could be put together by the budgets and planning ministry. Distinguished ladies and gentlemen, the largest room in the world is the room for improvement. Therefore, in spite of current achievements and structures of ground, a lot more can be achieved, especially around sustainable development.
“Again, this will be measured by higher per capita income for our people and long-term growth. As well as better standards of living and significant leaps in the 17 metrics measured under the United Nations Sustainable Development Goals. Measurements around poverty in general, food poverty in particular, health, education, water, and much more”, he added.
Also speaking at the forum, Director General of the Nigeria Institute of Social and Economic Research, Professor Anthonia Simbine, pointed to deep-rooted structural issues undermining development efforts.
She said the country’s challenges are not due to a lack of plans, but rather poor execution and weak coordination.
“The challenges facing the country was not as a result of absence of development planning, but weak implementation discipline as well as misalignment between plans and budgets, unrealistic macro fiscal assumptions and weak execution of monitoring systems,” she said.
Her remarks reinforced concerns that without stronger discipline and accountability, even well-crafted policies may fail to deliver meaningful results.
The Director General noted that global experience has consistently shown that successful economies are built on strong alignment between national plans and budgets, backed by credible fiscal rules, independent forecasting and the use of digital systems alongside performance-based budgeting.
Professor Anthonia Simbine argued that for Nigeria to close its implementation gaps and deliver inclusive, long-term growth under the Renewed Hope Mid-Term National Development Plan (2026–2030), it must move away from conventional budgeting practices and embrace a more flexible, technology-driven fiscal approach.
She outlined the need for a structured link between planning and budgeting, moving beyond basic compliance to a more strategic allocation of resources. This, she explained, would involve ensuring that capital projects are tightly aligned with national priorities, placing greater emphasis on value for money and measurable impact, and redesigning government programmes to focus on scalable, high-impact outcomes.
She also pushed for a more responsive budgeting model, proposing the adoption of rolling frameworks that allow for periodic adjustments based on changing realities. This would include quarterly forecasts, a more flexible medium-term expenditure framework and the ability to reallocate resources within approved limits when necessary.
In addition, she highlighted the importance of innovative financing and stronger collaboration across sectors. This would involve pooling resources across government departments, expanding the use of public-private partnerships, exploring blended financing options and making better use of national and subnational investment platforms.
Technology, she stressed, must play a central role in modernising the budgeting process. She called for deeper integration of digital financial systems, the introduction of real-time tracking tools and automated reporting mechanisms to improve transparency, monitoring and early detection of inefficiencies.
She further emphasised the need to strengthen coordination between federal and state governments through incentive-based frameworks, including performance-linked transfers and joint project platforms that encourage alignment across all levels.
To improve accountability, she advocated a shift towards outcome-driven budgeting, where funding releases are tied to clearly defined performance indicators. This, she noted, should be supported by performance contracts for government agencies, real-time audits and data-driven evaluation systems.
Professor Simbine also pointed to the need for better tools to measure socio-economic impact, proposing the development of standardised metrics and the integration of cost-benefit analysis into decision-making.
At the same time, she stressed the importance of balancing flexibility with fiscal discipline, recommending the establishment of stabilisation mechanisms and contingency reserves to manage uncertainties while maintaining economic stability.
The two-day dialogue is expected to generate recommendations aimed at strengthening Nigeria’s budgeting system and ensuring it supports long-term economic growth.
