The Federal Government of Nigeria has announced a new approach to Investment Budgeting that will focus on measurable performance outcomes and market-led governance. The initiative aims to help unlock the country’s target of building a 1 trillion dollar economy.
During a recent meeting with Dr Tayo Aduloju, Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Dr Doris Uzoka-Anite, Minister of State for Finance, stressed the need for implementation discipline and accountability in managing national assets. She noted that previous models often transferred critical infrastructure to operators who lacked the technical capacity or capital required for effective delivery.
“Implementation is key. Government’s role is to lead the framework, design the policy, support and catalyse the private sector, and put money behind it. But performance must be measurable. There must be clear metrics to measure output, jobs and income generation, and there must be consequences. If performance is not delivered, we must be able to withdraw support or claw back what has been provided,” said Dr Uzoka-Anite.
She highlighted inefficiencies in some sectors as evidence that improved governance and accountability are necessary. According to Dr Uzoka-Anite, her ministry is working with the Ministry of Finance Incorporated (MOFI) to review government equity in strategic assets and ensure oversight translates into enforceable performance standards.
Dr Uzoka-Anite explained that the new Investment Budgeting framework will use key performance indicators (KPIs) to link government support with transparent targets and measurable national outcomes.
Dr Aduloju welcomed these reforms and pointed out that international best practices—such as competitive asset councils used in some Middle Eastern countries—could help Nigeria achieve optimal management of its assets by evaluating projects against national benchmarks and enforcing strict rules based on results.
In response, Dr Uzoka-Anite indicated Nigeria could adopt similar mechanisms by combining market discipline with minority state equity positions while allowing competent private investors to operate under global standards.
The minister also revealed plans for new investment strategies aimed at mobilizing large-scale capital flows into priority sectors. She clarified that these would focus on attracting investment rather than providing grants, aiming to bring institutional capital into the economy.
A multi-sector umbrella fund with sub-funds targeted at key economic sectors will soon be launched as part of this strategy. The platform intends to attract risk-averse institutional investors such as pension funds by offering indirect exposure through professionally managed vehicles with strong governance structures.
This consultation forms part of ongoing discussions between government officials and private sector leaders as they seek an Investment Budgeting framework designed to deliver tangible results in productivity growth and real-economy investments.