NESG: Bagudu Defends Tinubu’s Economic Reform Strategy

Nigeria’s Minister of Budget and Economic Planning, Atiku Bagudu, has defended President Bola Tinubu’s economic reform strategy, saying the administration prioritised fixing the macroeconomy as a foundation for broader economic transformation.

Bagudu spoke at the ongoing 32nd Nigerian Economic Summit in Abuja, where he recalled Tinubu’s visit to the Nigerian Economic Summit Group (NESG) offices four years ago, when he was still a presidential candidate.

He said Tinubu presented his Renewed Hope Agenda as a plan to reset the economy. 

“Four years ago, when President Bola Tinubu visited the NESG offices, then as a candidate, offering two things: his vision for the reset of Nigeria, the Renewed Hope Agenda,” Bagudu said.

He explained that Nigeria had weak economic indicators at the time, including low tax revenue relative to gross domestic product (GDP), low public spending relative to GDP and the country’s relatively small economy and budget.

“As of then, we have the lowest tax-to-GDP ratio, we have the lowest expenditure-to-GDP ratio of the 10 most populous countries, we have the lowest GDP, we have the smallest budget, we have the smallest foreign borrowing, because again, sometimes expenditure follows borrowing,” he said.

According to Bagudu, Tinubu argued that blaming previous administrations would not solve the country’s problems, stressing the need for difficult decisions and a different approach to economic management.

“Whatever has happened in the past, irrespective of who did what, it doesn’t matter. We need to think differently. What can take us there was bold and courageous choices,” the minister quoted Tinubu as saying.

Bagudu said the administration’s reform programme was organised around clear priorities, with getting the macroeconomy right identified as a central objective.

He explained that economic reforms require careful sequencing, as policymakers must determine which measures should come first while accounting for their effects on other sectors.

“Those are the three elements that set the stage for sequencing, because as many of you, almost everyone here, especially those who have spoken in the program, in sequencing reforms, you have to be clear what you are going to prioritise and why,” he said.

“And it was very clear from him that we have to get the macroeconomy right. And luckily we have achieved.”

The minister added that the administration’s approach was deliberate rather than coincidental, while acknowledging that some urgent needs cannot be postponed even as efforts are made to stabilise the economy.

“So it’s not just a coincidence; it was part of the strategy. And then we know that there are trade-offs; even as you are trying to get the macroeconomy right, some things cannot wait,” Bagudu said.