Budget & Economic Planning: Appraising Bagudu’s Stewardship

In this piece, James Emejo assesses some of the milestones so far recorded by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, barely one year in office

Budget and economic planning remain critical aspects of economic development, helping governments prioritise spending, and ensuring that resources are allocated efficiently to sectors key sectors including healthcare, education, infrastructure, and defense, which are crucial vital for the country’s development.

If anything, economic planning helps to stabilise the economy by controlling inflation, managing public debt, and ensuring that government spending aligns with the available resources to prevent economic crises and ensures long-term sustainability among others.

Essentially, budget and economic planning constitute essential tools for ensuring that an economy functions effectively, remains stable, and achieves long-term growth and development goals.

The Federal Ministry of Budget and Economic Planning is saddled with the mandate to determine and advise the government of the federation on matters relating to national development and overall management of the national economy, and a mission to promote national development through plans formulation, qualitative budgeting and effective coordination of socioeconomic development including capacity building and tracking implementation of government policies.

Bagudu was sworn in as Minister of Budget and Economic Planning on August 21, 2024, to coordinate the recovery of an ailing economy which was tethering on the brink of collapse.

Not many would envy the minister’s portfolio at the time when all of the country’s macroeconomic indices were headed south amid high inflationary environment, Foreign Exchange crisis and severe revenue challenges – all worsened further by the COVID-19 crisis and bad policies by past administrations.

Bagudu had an unenviable task of returning the economy to the path of macro-economic stability to comfort both domestic and foreign investors who had become weary of the country.

Right man for the job

However, the minister could be described as the right man for the job as he’s largely on a familiar ground – having served as a Special Assistant to the Minister of National Planning, Mr. Kalu Idika Kalu, under President Ibrahim Babangida’s military government.

His legislative experience as a Senator representing Kebbi Central, 2009-2015, and his executive experience as former Governor of Kebbi State, 2015-2023, came in handy on his new national tasks.

Bagudu, on assumption of office quickly hit the ground running, implementing a systematic budgeting and coordination of consensus around issues of national concerns.      

Budget milestones

The minister promptly brought his vast experience as a former federal legislator to bear on the country’s hitherto chaotic budgeting process by successfully negotiating the 2023 Supplementary Budgets and 2024 fiscal estimates as well as their amendment with the National Assembly.

All key aspects of the review were passed and assented to without the usual rancour that signposts such exercises in the past.

Notably, the 2024 Budget was submitted to the National Assembly as and when due despite the delay in the appointment of ministers while the President assented to it on January 1, 2024, in line with the budget cycle of January – December. If anything, the N28.77 trillion budget achieved its objective of reducing the fiscal deficit to support macroeconomic reform objectives of addressing low investments and low revenue issues, increasing capital expenditure, supporting the vulnerable populations affected by reforms, and increasing allocations to key sectors and innovative schemes.

The 2023 Supplementary Budget of N819 billion was re-negotiated to provide N500 billion for intervention in agriculture, energy transition, presidential conditional grant to NANO businesses, and MSME credit support while an additional N2.17 trillion 2023 Supplementary Budget focused on Security, Infrastructure (Roads and FCT), Agriculture, Wage awards to public servants, and cash transfer provisions were successfully negotiated by Bagudu’s dint of hard work.

Moreover, the N6.2 trillion (2024 Amendment Act), which focuses on providing counterpart and equity contributions for Renewed Hope Infrastructure Projects, providing a minimum wage, and additional funding for water, irrigation, and dam development, as well as agriculture and food security initiatives, were also successfully negotiated and resolved with the National Assembly.

Budget implementation, monitoring

The federal government programmes and projects funded by the 2023 Capital Budget Appropriation were monitored against targets set in the National Development Plan. 

Over 500 selected federal government projects implemented in 2023, Capital Appropriation were monitored to ensure accountability and value for money. In addition, Eyemark, an App developed to provide citizens with feedback on projects is currently being implemented.

 The ministry also spearheaded the review and revision of the National Development Plan, 2021-2025, to accommodate President Bola Tinubu’s eight priorities and Renewed Hope agenda which is currently 95 per cent completed.

The implementation of the $750 million – National Poverty Reduction with Growth Strategy (NPRGS) to address Multidimensional Poverty and Job creation in the country was coordinated with the relevant MDAs across 36 States and FCT.  In 2023, the FCT and 34 states were reimbursed N438.3 billion. So far, 67,038 jobs have been created in the first phase of the 2023 implementation. The recommendations of the Multidimensional Poverty Index Report across 36 States and FCT were further implemented to address the challenges of deprivation and access to social services.

Under Bagudu, the effective coordination and engagement with development partners and NGOs has enhanced Development Assistance to Nigeria, with the minister pressing donor agencies and nations to do more for the country.

Also, the minister played a key role in the development of the National Transport Policy for Nigeria in collaboration with the Ministry of Transportation.

Enhanced Social Protection Policy

The revised National Social Protection Policy was a key initiative of the current administration, which was coordinated by the ministry under Bagudu and ready for launch. All 36 State governors at the National Executive Council (NEC) meeting agreed that the President should launch the policy as a guide for managing the social protection programme in the country.

As a result, the Community of Practice of Stakeholder MDAs on implementation of the National Social Protection Policy was inaugurated. This has enabled the timely release of monthly inflation figures to guide policy decision-making. The release of quarterly GDP numbers and other indicators are consistent with the timeframe, ensuring that the National Bureau of Statistics (NBS) remains independent.

The ministry has also commenced preliminary work on rebasing the GDP numbers to cover emerging economic sectors. When completed, this will boost the country’s GDP and strengthen its prime position as the largest economy in Africa.

Through the NEC, the ministry developed the Action Plan to prevent crude oil theft, thereby boosting oil production as well as improving the government’s fiscal position through enhanced revenue generation. Among other things, the ministry successfully coordinated the implementation of the NG-CARES programme, a World Bank/FGN multi-sectoral programme designed to provide immediate emergency relief to vulnerable and poor Nigerians, smallholder farmers, and Nano, MSMEs that were adversely affected by the COVID-19 pandemic across the 36 states. Following the support, in 2024, the NG-CARES Programme transitioned from “Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) Programme to the Nigeria Community Action for Resilience and Economic Stimulus, shifting focus from COVID-19 recovery to building the resilience of the poor and vulnerable, especially entrepreneurs. The interventions of the NG-CARES programmes in 35 states plus FCT have impacted seven million poor and vulnerable households.

The ministry also coordinated the inaugural meeting of the National Council on Nutrition (NCN), chaired by the Vice President, the outcome of which was presented to all the governors at the NEC meeting, which eventually led to the constitution of the National Core Working Committee on Nutrition, housed in the Office of the President.

Bagudu who is no doubt a workaholic, has left so much to be desired within one year of his appointment and is adjudged as one of the key ministers in Tinubu’s administration who has contributed immensely to economic stability and social cohesion amid the current economic challenges from both global and domestic headwinds. 

He has been visible on critical national matters, especially during the recent “hunger protest”, communicating and engaging with Nigerians on the need to exercise patience as well as showing evidence of why the hardship may not endure. 

There’s no gainsaying, however, that the minister’s vast experience will still be crucial in the tasks ahead, and he remains a key pillar and asset in the current administration.