At 17th LEADERSHIP Conference, VP Shettima Says Nigeria’s Real Problem Is Fiscal Indiscipline, Not Political Structure

The Vice President, Senator Kashim Shettima, has identified fiscal irresponsibility— and not the structure of the country’s federalism—as the root cause of Nigeria’s governance challenges.

VP Shettima made the remarks at the 17th Annual LEADERSHIP Newspaper Conference and Awards held at the Banquet Hall of the State House, Abuja, on Tuesday.

Speaking on the theme, “Challenges and Opportunities in Nigeria’s Fiscal Federalism,” the Vice President, who was represented by his Special Adviser on General Duties, Aliyu Modibbo Umar, emphasised that the flaws often blamed on Nigeria’s federal structure stemmed largely from mismanagement of resources rather than any inherent problem with the constitution or governance model.

“The Nigerian challenge lies less in the structure of our federalism and more in the deficit of our collective fiscal responsibility,” Shettima said.

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

He commended LEADERSHIP Newspapers Group for providing a platform where “ideas are not only exchanged but legacies shaped,” and used the opportunity to highlight ongoing reforms under the Tinubu administration aimed at deepening accountability and improving service delivery at all levels of government.

Among the key reforms, Shettima cited the push for local government autonomy as a crucial step in bringing governance closer to the people.

He lauded the Supreme Court’s recent pronouncements affirming this autonomy, describing them as a critical milestone in building a truly functional federation.

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

Drawing examples from other federations such as Canada, Germany, and Spain, VP Shettima warned against romanticising foreign systems, urging stakeholders to pursue a uniquely Nigerian model of federalism rooted in accountability, dialogue, and national development.

“No federal system is perfect. Every federation evolves,” he said. “We must resist the temptation to prescribe imported solutions that fail to account for our distinct social, ethnic, and demographic complexities.”

He acknowledged the administration’s bold fiscal steps—including the removal of fuel subsidies and the introduction of tax reforms—as necessary measures to build a fiscally responsible federation.

“What matters most to everyday Nigerians is not the abstract theory of federalism but whether governance delivers water, electricity, schools, roads, and hospitals,” the Vice President said.

Shettima also congratulated the award recipients at the event, calling their recognition both “a celebration and a call to duty,” and encouraging them to exemplify integrity, innovation, and impact in public and private service.

“Nigeria needs more than policy. Nigeria needs patriots—citizens, leaders, and institutions ready to be counted when it matters most,” VP Shettima stated.