Fuel subsidy removal, tax reform proof of fiscal responsibility — Shettima

The Federal Government, through Vice President Kashim Shettima, has stated that the removal of fuel subsidies and the introduction of tax reform legislation serve as clear evidence of the government’s commitment to fostering a fiscally responsible federation.

He also pointed out that Nigeria’s primary challenge within its federal system does not lie in its structure, but rather in the widespread lack of fiscal responsibility across all levels of government.

However, he stressed that the administration of President Bola Ahmed Tinubu is firmly dedicated to enacting bold reforms aimed at creating a more functional and people-focused federal system.

One of the central pillars of this effort, he remarked, is the administration’s push for greater local government autonomy.

Delivering the keynote address at the 17th Leadership Annual Conference and Awards, held on Tuesday at the Banquet Hall of the State House in Abuja, Shettima, represented by Aliyu Modibbo Umar, Special Adviser to the President on General Duties (Office of the Vice President), called for enhanced accountability and reform to strengthen Nigeria’s fiscal federalism.

“There is no doubt that the challenges Nigeria faces, when carefully considered, are more a result of a deficit in our collective fiscal responsibility than any flaws in our federal structure,” Shettima said.

“The problems often attributed to our federal system stem from the poor management of what is already within our reach, not from any inherent flaw in our constitutional framework.”

He added, “We have chosen the path of reform. It is bold, often difficult, but necessary. Our pursuit of local government autonomy is being realised through the sanctity of due legal process, as underscored by recent Supreme Court pronouncements.”

The Vice President also cautioned against blindly adopting foreign federalism models, citing examples from Canada, Germany, and Spain to underline the point that each federation evolves according to its unique socio-political context.

“No federal system is perfect. Each adapts to its own context. We must resist the temptation to idealise foreign systems or apply imported solutions that do not account for our distinct social, ethnic, and demographic complexities,” he said.

Shettima stressed the importance of tailoring Nigeria’s federal structure to align with national aspirations, calling for honest dialogue and collective reform.

He pointed to recent policy initiatives, such as the removal of fuel subsidies and the passage of tax reform legislation, as proof of the government’s commitment to building a fiscally responsible federation.

“What matters most to everyday Nigerians—whether in Owerri or Sokoto—is not the abstract theory of federalism, but whether governance provides water, electricity, schools, roads, and hospitals,” he noted.

The Vice President urged stakeholders at all levels—federal, state, and local—to manage resources with care, transparency, and responsibility.

He stressed that meaningful progress would only be realised when “every kobo is spent with the people’s interests at heart.”

The event, organised by Leadership Newspaper, also honoured individuals and institutions that have exemplified excellence in service and leadership.

Shettima congratulated the awardees, describing them as “the embodiment of the values we aspire to institutionalise: integrity, innovation, and impact.”

In conclusion, he commended Leadership for providing a platform for crucial national discussions and for “shining a light on those who have chosen to lead with courage and competence.”

“May we never tire of striving for a better Nigeria,” he concluded.

Also delivering a goodwill message, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, reiterated the federal government’s commitment to press freedom in the country.

He noted that his presence at the event was a clear statement from the Federal Republic of Nigeria, particularly under the leadership of President Bola Tinubu, regarding the importance of safeguarding press freedom.

“My presence here as Attorney-General of the Federation is also a statement of the Federal Republic of Nigeria, especially under the able leadership of President Bola Ahmed Tinubu, to affirm that we do not interfere with press freedom,” he said.

Fagbemi also congratulated Leadership on its two decades in the media industry.

“Just a few years after the organisation was founded, the idea emerged to provide a panoramic view of performances across states and sectors, enabling us to honour those contributing to the nation’s development,” he added.