Minister of Budget and Economic Planning, Senator Atiku Bagudu, has backed President Bola Tinubu’s sweeping economic reforms, insisting that the controversial fuel subsidy removal is vital for Nigeria’s long-term development.
In an article published in The Explainer (Vol. 28, September 27, 2024), Bagudu argued that the fuel subsidy regime was unsustainable, noting that while diesel and kerosene prices had been deregulated, petrol remained artificially low.
“Transitioning to Compressed Natural Gas (CNG) is crucial,” Bagudu said, acknowledging temporary shocks to the poor but stressing the move is necessary for a more competitive energy sector.
He said the administration is addressing the ripple effects through its Renewed Hope Agenda, which includes targeted social intervention programmes.
“Our economy is too small. With a federal budget of just $20 billion, compared to Indonesia’s $213 billion or Brazil’s $750 billion, we can’t continue like this,” Bagudu stated.
“Monthly allocations to federal, state, and local governments fall below $2 billion. That’s only $24 billion annually grossly inadequate.”
Bagudu revealed that President Tinubu aims to grow Nigeria’s economy to $1 trillion, a goal that, he said, demands bold choices and hard reforms.
On foreign exchange, he emphasized the need for an independent Central Bank and a shift to a market-driven FX system to attract investment and stabilise the naira.
Bagudu also highlighted initiatives such as a 3-million-youth skills training programme in AI, automation, and robotics, and renewed support for agriculture, SMEs, and microcredit schemes.
Citing the recent $900 million oversubscription of Nigeria’s dollar bond, Bagudu said investor confidence is rising, and international partners including Saudi officials are backing Tinubu’s reform agenda.
“These are the tough decisions that build strong nations,” he said.
