FG to stop funding non-performing projects to reach $1tr goal
The Federal Government has announced a new Investment budgeting approach aimed at driving stronger project delivery, measurable results, and private sector participation. This is part of the government’s plan to
The Federal Government has announced a new Investment budgeting approach aimed at driving stronger project delivery, measurable results, and private sector participation.
This is part of the government's plan to grow Nigeria's economy to one trillion dollars.
Speaking during a strategic meeting with the Chief Executive Officer of the Nigerian Economic Summit Group, Dr Tayo Aduloju, the Minister of State for Finance, Dr Doris Uzoka-Anite, said the country must move away from past practices where key infrastructure assets were handed to operators who lacked the technical skill, financial strength, or motivation to deliver results.
She said, “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.”
The minister explained that results in some sectors show why a new system is necessary, noting that weak incentives and poor oversight in the past led to inefficiency and poor service delivery. According to her, the government is now working with the Ministry of Finance Incorporated (MoFI) to review its equity stakes in certain strategic assets, strengthen supervision, and ensure that government shareholding leads to real performance.
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She said the new framework will rely on key performance indicators that tie government support to clear targets and measurable national outcomes. This means companies or projects that benefit from public backing will be judged on results such as job creation, productivity, and income growth.
To attract large-scale funding, Uzoka-Anite said the government plans to introduce new investment strategies that will deepen the country's financial capacity and direct long-term funds into priority sectors. She explained that the plan focuses on investment rather than grants and is designed to draw in institutional investors.
As part of the strategy, she announced plans for a multi-sector umbrella fund made up of several sub-funds focused on major parts of the economy. She said the platform would allow cautious investors such as pension funds to participate indirectly through professionally managed investment vehicles that have strong governance and risk controls.
In his remarks, Aduloju welcomed the reform direction and said Nigeria needs a competitive governance structure to get the best performance from national assets. He pointed to examples from parts of the Middle East where asset councils review projects using national performance benchmarks and apply strict rules on who can enter or exit based on results.
Uzoka-Anite agreed that Nigeria can adapt similar systems. She said the proposed path would combine stronger market discipline with government holding minority stakes, while technically capable private investors manage operations under competition and global standards.
The meeting is part of ongoing consultations between the government and private sector leaders as authorities work to shape an Investment Budgeting framework that can deliver measurable national results, improve productivity, and attract more investment into the real economy.
