In defense of President Bola Tinubu’s economic reforms, Minister of Budget and Economic Planning Abubakar Bagudu has maintained that the administration’s measures are already bolstering public finances and enhancing financing for state and local governments nationwide.
Speaking on ARISE News on Wednesday, Bagudu refuted accusations that the reforms had failed, claiming that they were necessary if Nigeria was to stop years of poor budgetary management and economic deterioration.
However, I disagree with you since the agenda made it plain that we are not where we want to be as a country. He stated that Nigeria’s economy is still little “in relation to both our potential and our fears,” and that “we are not shy of admitting it.”
The minister said that difficult choices were unavoidable because the government inherited serious structural issues.
“Therefore, in order to stop the bleeding and start to generate resources for all the three tiers of government, we have to make decisions that are bold, courageous, tough, and not necessarily pleasant,” Bagudu stated.
He insisted that the reforms are already having an effect, especially on subnational finances.
“Today, every local authority in the north has more funding. Like the rest of the nation, the northern state governments all have more funding. He emphasized that better allocations would assist state and municipal authorities in improving social and economic indices, saying, “It would not have been so without the reforms.”
Bagudu also rejected the notion that Nigeria’s budgetary system is flawed.He continued by saying that many countries face growing debt and revenue issues, and that “the budget, which you said is a shamble, no, I disagree with you.”
There will always be a sizable discrepancy between revenue and expenditure in any budget system, particularly a democratic one. He added that Nigeria is also coping with global economic disruptions that affect income flows and planning, and that the United States of America has experienced a budget shutdown this year.
The minister stated that both local and international assessments back the government’s macroeconomic course, even if he acknowledged that many Nigerians still face challenging living conditions.
“We have done well with the macroeconomic reforms, but we must take the reforms to include everyone,” he stated, citing other international organizations such as the World Bank, IMF, Economist publications, and Nigerian commentators.
The administration is now focusing on grassroots economic growth, Bagudu said, adding that a National Economic Council-approved plan seeks to turn Nigeria’s 8,809 wards into hubs of affluence.
“One of the approved strategies is a plan to ensure that the three levels of government work together to make the 8,809 wards of Nigeria centers of prosperity,” he stated.
He clarified that every ward would undergo an evaluation in order to determine its economic potential, the factors that contribute to poverty, and successful enterprises that might be encouraged to spur development.
The minister also emphasized agriculture as a key area of concentration, pointing out that at least 42 million households participate in some kind of agricultural activity, according to official data.
“We need to modernize them as soon as possible so they can increase their revenue, support growth, and improve their own lives in a sustainable way,” Bagudu stated.
