Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has admitted that President Bola Tinubu’s economic reforms have added to the cost-of-living pressures facing Nigerians.
Bagudu, however, defended the reforms, saying they were needed to improve public finances, stabilise the economy and support long-term growth.
He spoke at the Federal Appointees Strategic Summit on budget implementation, according to a statement from his ministry on Wednesday.
“He acknowledged that the reforms, along with international economic pressures, had contributed to cost-of-living challenges and other pressures facing citizens, but maintained that the administration remained focused on achieving long-term economic stability and inclusive growth,” the ministry said.
The reforms include the removal of petrol subsidy and changes to the foreign exchange market.
Bagudu said global uncertainty, conflicts, trade and tariff pressures also affected food prices and living costs.
He said the reforms had increased funds available to the Federal Government, states and local councils.
“Rather than keeping additional revenues at the centre, the President has taken the position that we should give local governments and states more money and energise everyone so that we can interrogate and fulfil our responsibilities,” he said.
Bagudu said the stronger finances would allow states to invest more in infrastructure, education, security and public services.
He added that some economic indicators, including revenue-to-GDP, were improving, while tax reforms aimed to make revenue collection more efficient.
The minister said the government still wanted stronger results and remained focused on boosting local production.
He also said the administration was targeting a $1tn economy by 2030 and urged federal appointees to better explain its policies and achievements to Nigerians.
Bagudu rejected claims that federal spending favoured certain regions, saying security, infrastructure and livelihood programmes were designed to serve Nigerians nationwide.
