No nation can finance its development on external dependence alone — FG

By Johnbosco Agbakwuru

ABUJA — The Federal Government on Wednesday said no nation can finance its development on the basis of external dependence alone.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, stated this in his remarks at a high-level capacity-building session with chairpersons of state revenue services and the joint revenue board, on the occasion of an experience-exchange visit by the Government of the Federal Democratic Republic of Ethiopia to review Nigeria’s Integrated National Financing Framework (INFF) for the Sustainable Development Goals (SDGs) in Abuja.

The minister said aid and foreign investment are important complements, but they cannot substitute for the sovereign capacity to generate, manage and deploy public resources effectively.

He said: “Africa faces a significant financing gap in meeting the Sustainable Development Goals and the aspirations of Agenda 2063. Traditional concessional finance is becoming increasingly constrained, while climate pressures and post-pandemic recovery continue to stretch fiscal systems across the continent.

“This is not cause for despair. Rather, it is an opportunity to rethink how development is financed and to ensure that every available source of capital is aligned with national priorities.

“The Integrated National Financing Framework is not bureaucratic nomenclature. It is a fundamentally different way of thinking about how nations mobilise, align and deploy financing for sustainable development.

“The future of development financing will not be determined solely by the resources available to us, but by how effectively we mobilise, align and deploy those resources in support of national priorities.

“Nigeria is proud to share what we have learned, and equally eager to learn from our Ethiopian counterparts.”

In her welcome remarks, the Senior Special Assistant to the President on SDGs, Princess Adejoke Orelope-Adefulire, said the workshop came at a critical moment in the nation’s development journey.

She said: “As we continue to pursue the aspirations of the 2030 Agenda for Sustainable Development and our national development priorities, the question of sustainable and adequate financing remains central to our collective achievement.

“While significant efforts have been made at the national level to mobilise resources for development, it is increasingly evident that the achievement of sustainable development outcomes depends substantially on the fiscal and institutional capacity, as well as the financial resilience, of our sub-national governments.”

She stated that across Nigeria, sub-national governments are at the forefront of delivering essential public services, adding: “They bear constitutional and primary responsibility for critical sectors such as primary healthcare, basic education, water and sanitation, agriculture, infrastructure and local economic development.”

According to her, the capacity of states to effectively mobilise, manage and deploy financial resources directly influences the quality of life of millions of Nigerians.

“Nigeria’s Integrated National Financing Framework (INFF) provides a strategic and comprehensive approach for aligning all sources of financing—public, private, domestic and international—with our national development priorities and the Sustainable Development Goals (SDGs).

“The INFF recognises that achieving sustainable development cannot rely solely on traditional public financing.

“Rather, it requires a coordinated approach that strengthens domestic resource mobilisation, enhances public financial management, improves expenditure efficiency, leverages private-sector investments and promotes innovative financing mechanisms.

“Within this framework, strengthening fiscal capacity at the sub-national level is not merely a technical exercise; it is a strategic imperative.

“States must be empowered to expand their revenue bases, improve tax administration, strengthen budgeting and expenditure management systems, enhance transparency and accountability, and create enabling environments that attract sustainable investments.

“The fiscal realities confronting many sub-national governments underscore the urgency of this agenda. Increasing expenditure pressures, limited internally generated revenue, growing infrastructure deficits, climate-related vulnerabilities and evolving economic uncertainties continue to challenge development financing efforts.

“Addressing these issues requires innovative thinking, bold reforms and stronger collaboration among all key stakeholders.

“This strategic workshop, therefore, provides an important platform for dialogue, knowledge exchange and collective problem-solving.

“It offers us an opportunity to examine practical strategies for strengthening fiscal systems, identify successful practices across states and international contexts, and explore how the INFF can serve as a catalyst for unlocking additional financing for sustainable development at the sub-national level.”

In a goodwill message, Ms. Elsie G. Attafuah, Resident Representative, UNDP Nigeria, said one of the most important lessons emerging across developing economies is that development financing can no longer be viewed solely through a national lens.

She said: “The Sustainable Development Goals are ultimately delivered in states, provinces, cities and communities. Schools are built at the sub-national level. Healthcare services are delivered at the sub-national level.

” Infrastructure investments, local economic development, enterprise support and job creation increasingly depend on the capacity of sub-national institutions to mobilise resources, manage them effectively, and direct them toward development priorities.

“This is why strengthening fiscal capacity at the state level is not simply a revenue issue. It is fundamentally a development issue. When states strengthen their fiscal systems, they strengthen their ability to invest in people.

“When they improve revenue administration, they expand the fiscal space needed to support growth, resilience and inclusion. When they build stronger institutions, they increase their ability to translate policy ambition into measurable outcomes.

“This understanding lies at the core of Nigeria’s Integrated National Financing Framework, which seeks to align all sources of financing behind national development priorities and the Sustainable Development Goals.

“The framework recognises that achieving development outcomes requires more than additional resources. It requires stronger institutions, better coordination, smarter financing strategies and greater capacity at every level of government.”

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