KEY POINTS
- Tinubu economic reforms increase state funding, Bagudu says.
- Tinubu economic reforms defend fiscal stability strategy.
- Tinubu economic reforms target 8,809 wards for growth.
Nigeria’s Minister of Budget and Economic Planning, Abubakar Bagudu, said President Bola Tinubu’s economic reforms are already strengthening public finances and improving allocations to state and local governments, pushing back against criticism that the policy overhaul has failed.
Speaking on Wednesday, Bagudu argued that the administration inherited structural weaknesses that required difficult adjustments to stabilise the economy and expand fiscal space. “We are not where we want to be,” he said, adding that Nigeria’s economy remains small relative to its potential. He maintained that reversing years of weak fiscal management required “bold, courageous” choices to halt what he described as economic decline.
Tinubu economic reforms lift subnational revenues
Bagudu said the Tinubu economic reforms have increased funding for subnational governments, particularly in the north, though he noted that gains extend nationwide. “All the local governments in the north now receive better funding. All the state governments in the north also receive better funding, just like in the rest of the country,” he said, attributing the improvement to changes in fiscal policy and revenue mobilisation.
He dismissed suggestions that Nigeria’s budget framework is in crisis, saying revenue-expenditure gaps are common in democratic systems. He pointed to fiscal pressures in advanced economies, including recent budget stand-offs in the United States, as evidence that such challenges are not unique to Nigeria.
While acknowledging that living standards remain under strain, Bagudu said multilateral institutions including the World Bank and the International Monetary Fund have endorsed the macroeconomic direction of the reforms.
Tinubu economic reforms shift to grassroots growth
The minister said the administration is now focusing on translating macroeconomic stability into broader development. A strategy approved by the National Economic Council aims to transform Nigeria’s 8,809 wards into “centres of prosperity” through coordinated efforts by federal, state and local authorities.
Furthermore, he said officials will assess each ward to identify its economic potential, the drivers of poverty, and viable enterprises they can support to spur growth. Agriculture remains central to that plan. Bagudu cited official data showing that at least 42 million households engage in agricultural activity and described modernising the sector as critical to raising incomes and sustaining growth.
“Our task is how to modernise them quickly,” he said, arguing that higher productivity would enable households to generate more income and contribute to national output. The minister said the reforms are intended to build a more resilient fiscal system while expanding opportunities across the country.
