VP Shettima says Nigeria’s federalism isn’t flawed, but weakened by poor fiscal responsibility and mismanagement of public resources

Vice President Kashim Shettima has argued that Nigeria’s federal structure is not inherently flawed, but rather compromised by poor fiscal responsibility and resource mismanagement.

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He made this assertion on Tuesday during the Leadership Annual Lecture and Awards Ceremony held at the Presidential Villa’s Banquet Hall in Abuja.

Speaking candidly, Shettima said the core issue lies in what he described as a “deficit of our collective fiscal responsibility.”

While defending the structural integrity of Nigeria’s federal arrangement, he criticised subnational governments for poor utilisation of their financial resources.

“Our problem often stems from poor management of resources, but we have chosen the path of reforms. It is bold, often difficult, but necessary,” he said.

Shettima emphasised that conversations around Nigeria’s federalism are both timely and crucial. He maintained that challenges attributed to Nigeria’s federal structure are more about governance inefficiencies than any constitutional shortcomings.

 “The issue is not merely how much each federating unit accrues, but how judiciously such resources are utilised.”

The Vice President praised the Tinubu administration’s commitment to reforms that enhance accountability and sustainability, citing policies such as fuel subsidy removal and new tax reform bills as pivotal moves aimed at establishing a fiscally responsible federation.

A key focus of his remarks was the administration’s drive to secure autonomy for local governments. He referenced recent Supreme Court rulings in support of this initiative, describing them as proof of the government’s commitment to grassroots development.

“This is how we make the federation functional—by bringing governance closer to the people,” he added.

Shettima urged critics of Nigeria’s fiscal federalism to understand that federalism is not a one-size-fits-all model. Drawing comparisons with Canada, Germany, and Spain, he illustrated how federal systems evolve to reflect national realities and that Nigeria must do the same.

“What we seek, therefore, is not a photocopy of another country’s model, but a federal structure tailored to our aspirations. It must reflect our values, ensure accountability, and foster development at all levels.”

The Vice President highlighted that Nigeria’s unique socio-ethnic composition calls for an approach rooted in internal dialogue, not foreign prescriptions.

He stressed that effective governance is the true test of any federal structure. According to him, everyday Nigerians are less concerned with theoretical debates about federalism than with tangible services like water, electricity, schools, and healthcare.

“If our governors manage their allocations with prudence, if our local governments are truly autonomous and accountable, if every kobo is deployed with the people’s interest in mind, then the structure will serve us well,” Shettima concluded.