Senator Abubakar Bagudu, was name as the Minister of Budget and Economic Planning, a Ministry that is critical to making or marring the reputation, integrity and acceptability of the Bola Tinubu administration, all eyes were then focused on Bagudu to advise the government of the federation on how to run an already expensive and deficit-ridden democratic government efficiently
Bagudu expectedly assumed office with a promise to work meticulously to leverage on the available human resources of the Ministry to ensure that the economic potentials of the country are unlocked and the Renewed Hope Agenda of Mr. President achieved.
Two years down the line, the Minister has matched his words with action as the Macroeconomic environment in the review period was redefined by the increasing level of uncertainties confronting the recovery of the global economy.
The economy expanded by 3.19 percent in the second quarter of 2024 with the oil sector contributing 10.15%, year-on-year, in real terms while the non-oil sector recorded a real growth of 2.80%.
The 2025 Budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity” is a pivotal component of the President’s Renewed Hope Agenda.
This budget focuses on fortifying essential policies to restructure the economy, enhance human capital development, expand trade and investment, increase oil and gas production, and ultimately elevate Nigeria’s economic competitiveness.
The non-oil sector will contribute significantly to the growth, mainly driven by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Trade; Agriculture, Crop production; Manufacturing (Food, Beverage and Tobacco) and Construction (Real Estate).
The proposed 2025 budget has seen a significant increase of 74.18%, reaching N47.9 trillion in nominal terms, signaling a bold fiscal strategy aimed at addressing persistent infrastructure gaps and development challenges. However, in dollar terms, the budget contracted by 23.22%, dropping from $36.7 billion in 2024 to $28.18 billion in 2025.
This reduction in real value limits the potential impact of the budget on economic growth and the well-being of the population.
In all this, while the nominal increase in the 2025 budget reflects an ambitious policy shift, its success will depend on effective revenue generation, debt management, project execution, and addressing inflation and exchange rate volatility.
Without tackling these challenges, the budget’s ability to deliver meaningful growth could be limited.
Brief History Of The Ministry
Ministry of Budget and Economic Planning was originally established as National Planning Commission by Decree No 12 Of 1992 and later amended by Act 71 Of 1993. The Ministry has the mandate to determine and advise the Government of the Federation on matters relating to National Development and overall management of the national economy.
The detailed objectives, functions, powers, and structure Of the Commission are outlined under sections 2, 3 and 5 Of the Establishment Act with a Vision for a Professional, Proactive, Smart and Team Oriented, Research, Planning and Budgeting Institution.
While the Mission remains to Promote national development through plans formulation, qualitative budgeting and effective coordination of Socioeconomic development including capacity building and tracking implementation of government policies among others.
It is on record that the man at the hem of affairs in the Ministry is a dedicated and visionary leader with a background in economics, specializing in economic policy development and budgeting. Passionate about driving sustainable economic growth and fiscal responsibility.
Experienced in crafting strategic policies and resource allocation to achieve national goals. Committed to fostering innovation, economic diversification, and sustainable development. Let’s connect and collaborate for a brighter economic future.
From the above, under the dynamic leadership of Senator Bagudu, the performance of the economy during the period has been inspiring considering developments in the global economy and the performance of other economies.
Nevertheless, it is important to fast-track efforts towards enhancing economic growth and revenue performance.
In his efforts to curtail the growth in recurrent expenditure and particularly personnel and debt related expenditure is critical even as effective implementation of measures to address the security challenges continue to be a priority.
Under the leadership of Senator Bagudu’s, the budget follows an even spread, ensuring that all six geo-political zones benefit from concrete projects that meet tangible realities on the ground.
This level of accountability has been unprecedented and highlights Bagudu’s commitment to transparency in governance.
Previous administrations struggled with ensuring that key sectors such as education, healthcare, infrastructure, and security received the necessary funding.
However, Senator Bagudu has worked meticulously to ensure that resources are allocated to projects based on national priorities and needs, rather than political considerations.
This has led to visible improvements in several key sectors across all regions of the country.
Senator Bagudu’s actions have been firmly in support of President Tinubu’s Renewed Hope Agenda, which prioritizes the economic integration of marginalized groups, particularly women and individuals with disabilities.
The Minister has played a critical role in ensuring that these groups are not only included but are also empowered to contribute meaningfully to the economy.
“Unlike previous administrations where budget allocations often remained theoretical, under Senator Bagudu’s leadership, there has been a strong focus on implementation and monitoring of projects.
“For the first time in many years, we are witnessing robust systems being put in place to monitor projects and their progress, ensuring that funds allocated to specific regions are utilized for the intended purposes. This level of accountability is unprecedented and highlights the commitment of Senator Bagudu to transparency in governance.
“Furthermore, one of the most remarkable successes of the current administration is the improved allocation of resources and their prioritization. Previous administrations struggled with ensuring that key sectors such as education, healthcare, infrastructure, and security received the necessary funding.
“However, Senator Bagudu has worked meticulously to ensure that resources are allocated to projects based on national priorities and needs, rather than political considerations. This has led to visible improvements in several key sectors across all regions of the country.
“Another significant achievement under Senator Bagudu’s tenure is the periodic review of projects and programs to ensure conformity with the objectives laid out in the national development plan.
The ability to adapt and make necessary changes to the implementation process is a sign of great foresight. Regular evaluations have allowed the Ministry to correct course when necessary, ensuring that projects remain aligned with the government’s overall goals of promoting inclusivity and sustainable growth.
“Additionally, Senator Atiku Bagudu’s actions have been firmly in support of President Tinubu’s Renewed Hope agenda, which has inclusivity at its core. This agenda prioritizes the economic integration of marginalized groups, particularly women and individuals with disabilities.
“The Minister has played a critical role in Ensuring that these groups are not only included but are also empowered to contribute meaningfully to the economy. Unlike in previous administrations where inclusivity was merely a slogan, the current administration, through Senator Bagudu’s efforts, has made tangible progress in integrating these groups into the economic system, a realistic endeavor.
“Another key governance issue that Senator Bagudu has helped address is youth unemployment. Nigeria’s youth population is one of the largest in the world, yet successive administrations have struggled to create meaningful opportunities for this demographic even on their meticulous planning, but only touching the surface.
“Senator Bagudu has been a trailblazer in contributing practical strategies for implementing the administration’s youth empowerment policies in her budgeting and planning.
Through initiatives such as vocational training, digital skills programs, and entrepreneurial support, young Nigerians are being equipped with the skills they need to thrive in a rapidly changing economy. This is a marked departure from previous administrations, where youth empowerment policies were often poorly implemented or underfunded.
“Evidently, Senator Bagudu’s performance as Minister of Budget and Planning is underpinned by his great foresight. Amidst the noise and complaints surrounding critical economic reforms, such as the removal of fuel subsidies and the deregulation of the foreign exchange market, Senator Bagudu has remained steadfast in his support of these policies.
“He has demonstrated a deep understanding of their long-term benefits for Nigeria’s economy, recognizing that short-term pain is sometimes necessary for long-term gain. His advocacy for these policies has helped to shape public discourse and build support for the administration’s reform agenda.
The Federal Government remains steadfast in its commitment to improved openness, transparency and accountability in budget preparation, implementation, monitoring, evaluation and feedback.
In view of this, strict observance of budget implementation guidelines and the governance framework on monitoring of capital budget implementation will continue to be followed.
Efforts have also been made geared towards promoting efficiency in budget implementation, while guaranteeing effective project management in the subsequent quarters of 2024 and beyond.
It is worth to note that Bagudu upon assumption of office as the minister of budget and national planning was tasked with the preparation of the 2024 Budget, which was designed to deliver on the reflectionary policies of the 2022 and 2023 Budgets, which helped put the economy back on the path of recovery and growth.
The Budget was prepared taking into consideration the policies/strategies contained in the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper ,MTEF/FSP.
The Budget was prepared using the Zero-Based Budgeting ,ZBB, approach and in line with the government’s development priorities, as articulated in the National Development Plan ,NDP, 2021 to 2025.
The 2024-2026 ,MTEF/FSP, provided the economic framework for the 2024 Budget, along with fiscal policy objectives and spending priorities of the Government over the three-year period.
It also shows the plans for achieving the Government’s defined objectives and highlights the key assumptions behind revenue estimates and fiscal targets as well as possible fiscal risks over the medium term.
