Nigeria’s economic capacity remains too limited to meet the country’s growing development needs, Minister of Budget and Economic Planning Atiku Bagudu has said.
Bagudu made the statement on Monday at the National Assembly during a media workshop focused on Nigeria’s budget process and the role of the media in strengthening accountability.
The minister said Nigeria has one of the smallest national budgets among the world’s 10 most populous countries, partly because of the country’s low revenue-to-GDP ratio.
“This economy is a small economy, and it will continue to disappoint until we get it right,” Bagudu said.
He compared Nigeria with other countries with large populations, including Pakistan and Brazil, to highlight the difference in the resources available for development.
According to Bagudu, Pakistan’s budget is about $67 billion, while Brazil’s 2025 federal budget is at least 25 times larger than Nigeria’s.
He questioned how Nigeria could be expected to deliver similar development outcomes while operating with significantly fewer resources.
“Do I expect to achieve the same outcomes as Brazil with a much smaller budget? Is it that these needs do not exist? I believe they do,” he said.
Bagudu said the Federal Government is targeting a $1 trillion economy and explained that reaching the goal would require stronger revenue mobilisation, greater investment and, where necessary, borrowing supported by public confidence.
He also said Nigeria needs to rethink how its budgets are developed, arguing that the country should not only plan around what it can currently afford but also consider the resources required to achieve its broader development ambitions.
On the budget process, Bagudu described the national budget as the outcome of negotiations involving the Executive, citizens and the National Assembly, which has the constitutional responsibility to appropriate public funds.
He urged journalists to scrutinise budget provisions but cautioned against immediately describing questionable items as unlawful insertions without first establishing their purpose.
According to him, some budget provisions that initially appeared questionable have later been found to address genuine needs within communities.
Bagudu also called for a broader assessment of budget performance, saying attention should not be focused only on capital expenditure.
He noted that recurrent expenses such as salaries, security and debt servicing are also necessary for government operations.
The minister urged continued cooperation between the legislature and the media to improve transparency, accountability and public understanding of how Nigeria’s budget is prepared and implemented.
