Minister Of Budget And Economic Planning Unveils Vision For 2024 Budget And Economic Growth

Senator Abubakar Bagudu Discusses Key Initiatives and Priorities for Sustainable Development

In an exclusive interview on the sidelines of the Arise News, KPMG 2024 Budget Day in Lagos, Senator Abubakar Bagudu, the Minister of Budget and Economic Planning, provided a comprehensive overview of the 2024 budget and outlined the government’s strategic plans to boost economic growth.

2024 Budget Aligned with Long-Term Vision

Senator Bagudu contextualized the 2024 budget, emphasizing its alignment with President Bola Ahmed Tinubu’s campaign agenda and the broader consensus outlined in Agenda 2050.

He highlighted the ambitious goal of achieving near double-digit growth by investing $100 billion annually, primarily sourced from the private sector. The removal of fuel subsidies and allowing the central bank to determine exchange rates were cited as key measures to instill confidence in the private sector.

Focus on Capital Expenditure and Priority Areas

The minister highlighted the significant allocation of 39% of the $28.77 trillion budget to capital expenditure, the highest in recent history. He clarified that when considering both core capital and the capital component of statutory transfers, the actual capital expenditure amounts to approximately N11 trillion.

Investments were increased in crucial sectors such as defense, national security, agriculture, food security, infrastructure, housing, and the creative economy.

Innovative Measures to Drive Economic Growth

Senator Bagudu emphasized the government’s commitment to de-risking consumer credit, mortgages, and agriculture to stimulate economic growth. Noteworthy initiatives include a N100 billion fund for consumer credits, N65 billion for mortgage de-risking, and another N100 billion for agricultural development.

These measures are designed to attract private sector participation and support industries that have the potential to drive economic activity.

Addressing Concerns About Deficit and Borrowing

Responding to concerns about the deficit, Senator Bagudu dismissed the notion that the government’s borrowing would crowd out the private sector. He emphasized President Tinubu’s directive to borrow within legal limits and clarified that bonds would be the primary means of borrowing.

The minister assured that the government’s commitment to economic stability and certainty would prevent any adverse effects on the private sector.

Empowering MSMEs and Women in the Economy

The minister highlighted ongoing efforts to support Micro, Small, and Medium Enterprises (MSMEs), pointing to previous budget provisions and the expansion of projects benefiting women. He acknowledged the crucial role of women, stating that “everything is women,” and outlined specific measures in the budget aimed at empowering women across various sectors, including agriculture, food security, and poverty alleviation.

Exchange Rate Policies and International Bond Market Participation

Addressing concerns about exchange rate policies, Senator Bagudu highlighted the importance of liberalizing the foreign exchange market. He defended recent executive orders signed by President Tinubu, emphasizing the need for a rule-based market.

Regarding international bonds, the minister clarified that while Nigeria officially may not have tapped the international bond market, entities like the Bank of Industry have successfully participated in the Eurobond market.

Tackling Revenue Challenges and Narrowing Fiscal Deficits

Senator Bagudu acknowledged the challenges posed by a significant portion of revenue going into debt servicing. He explained the increase in debt service provision, attributing it to interest payments on securitized ways and means.

The minister emphasized the government’s realistic approach to narrowing the gap by improving tax revenue and ensuring that private sector investments are prioritized over unnecessary expenditures.

Supporting Maritime Sector and Security Measures

Discussing plans to enhance revenue from the maritime sector, Senator Bagudu highlighted the creation of a Ministry of Blue and Maritime Economy as institutional realignment to underscore the sector’s importance. He urged accountability in public officials and emphasized the need for rigorous oversight to ensure that appointed officials deliver on their responsibilities.

Commitment to Economic Growth and Public Accountability

In conclusion, Senator Abubakar Bagudu reiterated the government’s commitment to economic growth, private sector collaboration, and creating an environment conducive to investment. He welcomed public scrutiny, emphasizing that the mission of the budget requires hard work and dedication from all stakeholders.