Govt Spending Not Meant to Favour Any Region, Says Bagudu
By Patience Ikpeme
The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, has dismissed claims that government spending under the current administration is designed to favour certain parts of the country over others.
Speaking at the Federal Appointees Strategic Summit, where ministries, departments and agencies presented and reviewed their budget performance, the minister explained that the major areas where government spends money, such as security, infrastructure and support for people’s livelihoods, are meant to serve the whole country and not any particular section of it.
He said that when government spends heavily on security, it is done to protect communities that are facing threats of violence and insecurity, no matter where they are located. He also said that money spent on roads, bridges and other infrastructure is meant to connect different parts of the country and open up opportunities for business and trade everywhere.
Bagudu used the occasion to charge federal appointees to study and understand the policies and reforms of the President Bola Ahmed Tinubu government properly, so that they can explain these policies clearly to ordinary Nigerians, especially those at the grassroots who may not fully understand what the reforms mean for their daily lives.
Speaking further, the minister said the decision to remove fuel subsidy and to reform the foreign exchange market was taken at a time when the country was already facing serious economic problems. He admitted that government did not expect the level of difficulty that followed in the global economy after these decisions were made.
He did not shy away from the hardship many Nigerians have faced as a result of these reforms. According to him, the reforms, combined with pressures from the global economy, have added to the cost-of-living problems facing citizens. However, he said the government remains committed to achieving stability and growth that will benefit everyone in the long run.
Bagudu explained that the reforms have opened a window for the Federal Government, states and local governments to have more money to work with. He said this is helping state and local governments to meet their responsibilities to the people better than before.
He linked this to President Tinubu’s belief in true federalism, where more money should get to the states and local governments instead of remaining at the centre. Quoting the President’s position on this, Bagudu said, “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.”
The minister also spoke about steps the Federal Government has taken to settle money it owes to the states, saying this is part of efforts to strengthen the country as a whole and to give every level of government the ability to provide services to the people.
He recalled a time in the past when many states could not pay workers’ salaries even though the price of oil in the international market was high. He said this showed that having money alone is not enough if it is not well managed or fairly distributed, and pointed out that things have changed for the better now, with states having more room to invest in roads, schools, security and other important areas that fall under their duties.
On the state of the economy in general, Bagudu said there are early signs of improvement, including in the amount of revenue government is able to raise compared to the size of the economy. He said tax reforms currently going on are meant to make the tax system work better, not to place extra burden on ordinary citizens.
He was quick to add that these gains are being achieved despite serious challenges happening around the world, including conflicts and disagreements over international trade and tariffs, which have pushed up food prices and made the cost of living harder for many people.
Bagudu said the progress made so far should not be seen as the final destination, noting that President Tinubu keeps pushing members of his administration to do more for the country.
He disclosed that government’s long-term goal is to grow Nigeria into a one trillion dollar economy by the year 2030, in a way that improves the lives of ordinary people and reduces poverty across the country.
Describing the target as difficult but possible, the minister said the country needs to put the right building blocks of the National Development Plan in place to achieve lasting economic transformation.
He also spoke about government’s plan to encourage more production of goods within the country, so that the gains from the economic reforms can reach ordinary Nigerians, particularly those in rural and grassroots communities.
According to Bagudu, discussions at the National Economic Council have also centred on encouraging state governments to take steps that will boost local production and make sure that more Nigerians feel the benefits of the ongoing economic reforms.
