‘Reforms have worked’ - Budget Minister defends Tinubu’s policy

Minister of Budget and Economic Planning, Abubakar Bagudu, has defended President Bola Tinubu’s economic reforms, insisting that the administration’s policies are already strengthening public finances and improving funding for states and local governments across the country.

Speaking on ARISE News on Wednesday, Bagudu dismissed claims that the reforms had failed, arguing that the measures were unavoidable if Nigeria was to halt years of economic decline and weak fiscal management.

“But I disagree with you, because what we said clearly as a nation in the agenda is that we are not where we want to be. We are not shy of admitting it,” he said, adding that Nigeria’s economy remains small “relative to both our potential and our fears”.

According to the minister, the government inherited deep structural problems which made tough decisions inevitable.

“So, to interrupt it, we have to take choices that are bold, courageous, tough, not necessarily pleasant, in order that we will stop the bleeding and begin to generate resources for all the three tiers of government,” Bagudu said.

He maintained that the impact of the reforms is already being felt, particularly in subnational finances.

“All the local governments in the north today are better funded. All the state governments in the north are better funded, like in the rest of the country. It would not have been so without the reforms,” he said, stressing that improved allocations would help state and local authorities raise social and economic indicators.

Bagudu also rejected the view that Nigeria’s fiscal framework is in crisis.

“The budget, which you said is a shamble, no, I disagree with you,” he said, explaining that revenue pressures and rising obligations are challenges faced by many countries.

“Much between revenue and expenditure is a fact of life in any budget system, particularly in a democratic system. We have seen budget shutdown in the United States of America this year,” he said, noting that Nigeria is also contending with global economic disruptions that affect revenue flows and planning.

While acknowledging that living conditions remain difficult for many Nigerians, the minister said international and domestic assessments support the government’s macroeconomic direction.

“There are other global institutions, from the World Bank, from IMF, from the Economist magazines, and Nigerian commentators who shared the belief that we have done well with the macroeconomic reforms, but we must take the reforms to include everyone,” he said.

Bagudu said the administration is now shifting attention to grassroots economic development, revealing that a strategy approved by the National Economic Council aims to transform Nigeria’s 8,809 wards into centres of prosperity.

“One of the strategies approved… is a plan to ensure that the 8,809 wards of Nigeria are made centres of prosperity by a combined effort of the three tiers of government,” he said.

He explained that each ward would be assessed to identify economic potential, poverty drivers and viable businesses that can be supported to drive growth.

The minister also highlighted agriculture as a major focus, noting that official data shows at least 42 million households engage in one form of agricultural activity.

“Our task is how to modernise them quickly… so that they can generate more income, contribute to growth and do better for themselves in a sustainable manner,” Bagudu said.

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