[BREAKING] Shettima: Nigeria’s Fiscal Woes Due To Poor Resource Management, Not Federal Structure

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Vice President Kashim Shettima has stressed that the nation’s biggest challenge in its federal system lies not in its structure, but in a pervasive deficit of fiscal responsibility across the three tiers of government.

He emphasised, however, that the administration of President Bola Tinubu is committed to bold reforms aimed at promoting a more functional and people-centered federal system.

According to him, a key pillar of this effort, is the present government’s push for local government autonomy in the country.

Delivering a keynote lecture at the 17th Leadership Annual Conference and Awards, held Tuesday at the Banquet Hall of the State House in Abuja, the Vice President who was represented by the Special Adviser to the President on General Duties (Office of the Vice President), Aliyu Modibbo called for greater accountability and reform to strengthen Nigeria’s fiscal federalism.

Shettima said: “There is no doubt that the Nigerian challenge, when carefully considered, lies less in the structure of our federalism and more in the deficit of our collective fiscal responsibility.

“The problems we attribute to our federal system often stem from the poor management of what is already within our grasp, not from any inherent flaw in our constitutional architecture.

“We have chosen the path of reform. It is bold, often difficult, but necessary. Our pursuit of local government autonomy is being realised through the sanctity of due legal process, as underscored by recent Supreme Court pronouncements”.

Canvassing against the wholesale importation of foreign federalism models, the Vice President cited examples from Canada, Germany, and Spain to highlight that every federation evolves according to its unique socio-political realities.

According to him: “No federal system is perfect. Each adapts to its own context. We must resist the temptation to romanticise foreign systems or prescribe imported solutions that fail to account for our distinct social, ethnic, and demographic complexities”.

Shettima stressed the importance of tailoring Nigeria’s federal structure to meet national aspirations, calling for sincere dialogue and collective reform.

He pointed to recent policy initiatives such as fuel subsidy removal and tax reform legislation as evidence of the government’s commitment to building a fiscally responsible federation.

His words: “What matters most to everyday Nigerians—whether in Owerri or Sokoto—is not the abstract theory of federalism but whether governance delivers water, electricity, schools, roads, and hospitals”.

The Vice President urged stakeholders at all levels—federal, state, and local—to manage resources with prudence and transparency.

He underscored that real progress would only come when “every kobo is deployed with the people’s interest in mind.”

Individuals and institutions exemplifying excellence in service and leadership were also honoured at the occasion.

Shettima congratulated the awardees, describing them as “the embodiment of the values we aspire to institutionalise: integrity, innovation, and impact.

On his part, Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, emphasized the commitment of the federal government press freedom in the country.

The AGF who was delivering a goodwill message noted that his presence at the event represents a clear statement from the Federal Republic of Nigeria, particularly under the leadership of President Tinubu, regarding the importance of safeguarding press freedom.

His words: “My being here as Attorney-General of the Federation is also a statement of the Federal Republic of Nigeria, particularly under the able leadership of President Bola Tinubu, and we also have the Vice President here, that we do not tamper with free press”.