Nigeria’s Budget Struggles to Match Development Needs, Says Bagudu

ABUJA — Nigeria’s Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, says the country’s budget remains too small to meet its growing development needs.

Bagudu made the remarks on Monday at a capacity-building workshop organised by the Senate Press Corps in Abuja. He said Nigeria has one of the smallest national budgets among the world’s 10 most populous countries.

The minister said the country’s limited fiscal space is partly linked to its low revenue-to-GDP ratio, making it difficult for government to provide the level of infrastructure and public services required by the population.

Nigeria’s 2026 budget stands at ₦68.32 trillion, but Bagudu argued that the size of the budget should be considered alongside the country’s population and development ambitions.

He compared Nigeria with Brazil, saying both countries have relatively large populations and federal systems, but Brazil operates with a much larger federal budget.

Bagudu said Nigeria cannot expect to achieve similar development outcomes without significantly expanding the resources available for investment.

Revenue mobilisation remains key

The minister called for a wider national discussion on how Nigeria can increase revenue and expand its fiscal capacity.

He said the government’s ambition of building a $1 trillion economy will require greater investment, stronger revenue mobilisation and, where necessary, borrowing backed by public confidence.

Bagudu also urged Nigerians and the media to look beyond the size of capital spending when assessing the national budget. He noted that salaries, security, debt servicing and other recurrent expenses are also necessary for government to function.

The minister’s comments come amid continuing debate over Nigeria’s budget process, including concerns about budget implementation and alleged insertions.

Monafrika Business Watch: The debate now goes beyond whether Nigeria needs a bigger budget. The bigger questions are how the country can raise more revenue, how funds are allocated and how effectively approved projects are delivered.