Nigeria’s Federal Budget Lags Behind Other Populous Nations – Minister Bagudu

By Onoja Baba, Abuja, Nigeria

The Minister of Budget and Economic Planning, Senator Atiku Bagudu, has said that Nigeria’s federal budget stands at $20 billion, significantly lagging the budgets of other populous countries such as Indonesia and Brazil.

The minister made this statement during his address at the launch of ActionAid Nigeria’s Country Strategy Paper, themed “Citizens’ Action Against Poverty and Injustice (2024-2034),” in Abuja on Thursday.

“The federal budget of Indonesia is about $210 billion. The federal budget of Brazil is about $700 billion and has been at that level for a while — for upwards of a decade. Nigeria’s federal budget is currently about $20 billion, with the highest it has reached being around $35 billion,” Bagudu stated. He emphasized the need for Nigerians to confront this reality, suggesting that recognizing the country’s financial constraints could inspire a collective effort to improve the situation.

Bagudu called for collective action from both citizens and the government to address what he described as “decades of under-investment” in the country.

He saod: “Do we want to be like Brazil? Or do we want to be like Indonesia? Can we hope to achieve what they have with that level of federal spending? Or should we confront this reality? Confronting our reality is akin to gathering the family around and reminding everyone that we are not as wealthy as we think we are. Maybe new energy will come into the family, and the sense of entitlement will give way to ‘What can I do? What effort can I contribute?”

The Minister further highlighted the importance of citizens engaging with the government at all levels to seek improvements, pointing out that the current situation is not due to the actions of any single leader but rather the result of cumulative under-investment over the years.

“This situation is not the result of any one person’s effort but rather cumulative decades of under-investment. We must address this issue, and in doing so, everyone matters,” Bagudu added.

In his address, the Country Director of ActionAid, Andrew Mamedu, stressed the urgency of addressing the poverty situation in Nigeria.

He noted that nearly 12 percent of the global population was living in extreme poverty in 2023, a figure exacerbated by ongoing conflicts and disasters worldwide. In Nigeria, where the poverty threshold is $1.90 a day, 133 million out of 200 million people are multidimensionally poor.

“This means they not only lack financial resources but also access to essential services such as education, healthcare, and clean water. If you are not among the 133 million, it is likely that your family members—extended or nuclear—are. If we do not address this now, future generations may face the same plight. Hope and belief are not strategies; they must be accompanied by action. This is the essence of our CSP,” Mamedu said.

The launch of the Strategy Paper by ActionAid is seen as a critical step towards mobilizing both government and citizen efforts to tackle poverty and under-investment, aiming for a more prosperous and equitable future for Nigeria.