Bagudu’s budgetary reforms: A new era of fiscal accountability, growth in Nigeria

President Bola Ahmed Tinubu’s assent to the 2025 budget marked a significant fiscal milestone, reinforcing the administration’s commitment to accelerated budgetary processes.

While the approval was granted two months later than in 2024, the efficiency of budget proposal reviews and legislative approvals has significantly improved in recent years.

Despite assuming office in August 2023, the Minister of Budget and Economic Planning, Abubakar Bagudu, demonstrated strong fiscal management by ensuring the 2024 budget navigated legislative hurdles efficiently, securing presidential assent by January 2024.

Experts attribute this efficiency to the minister’s extensive experience in economic planning and governance. Having served as a special assistant to the Minister of National Planning under President Ibrahim Babangida’s administration and later as a senator (2009–2015) and governor of Kebbi State (2015–2023), Bagudu leveraged his expertise to facilitate the budgetary process.

The 2025 budget, dubbed the “Budget of Restoration,” has now been operationalised, guiding fiscal policy implementation across ministries, departments, and agencies (MDAs).

As the Tinubu administration approaches its second year in office, evaluating the Ministry of Budget and Economic Planning’s performance is imperative, particularly in the areas of economic recovery, job creation, and poverty alleviation. According to the minister, budget allocations align with six national priority areas, including economic growth and job creation, food security, poverty reduction, facilitating access to capital, promoting inclusivity and harnessing skills, and anti-corruption measures.

Read also: Nigeria’s N54.99trn budget supports economic expansion, says Bagudu

Employment and poverty alleviation

A critical metric for assessing budget effectiveness is its impact on employment and poverty reduction.

In his 2023 performance report, Bagudu emphasised the ministry’s coordination of the National Poverty Reduction and Growth Strategy (NPRGS), which facilitated job creation initiatives across all 36 states and the FCT. He disclosed that 67,038 jobs were created in the first implementation phase, demonstrating tangible economic benefits.

He said the ministry is integrating geospatial analytics to enhance resource optimisation and inclusivity to improve policy design and implementation. Insights from the Multidimensional Poverty Index (MPI) Report are also being applied to improve access to social services and mitigate deprivation.

The Bagudu-led Ministry said it successfully coordinated the implementation of the NG-CARES program across the 36 states. NG-CARES is a World Bank/FGN multi-sectoral program designed to provide immediate emergency relief to the vulnerable and poor Nigerians, smallholder farmers, and nano, MSMEs adversely affected by the COVID-19 pandemic.

The ministry revealed that seven million poor and vulnerable households had been impacted by the interventions of the programs in 35 states and the FCT, Abuja.

Enhancing transparency and economic data integrity

Despite public scepticism—often amplified by social media—the minister has prioritised data transparency and fiscal accountability.

The National Bureau of Statistics (NBS) remains independent under his leadership, ensuring the timely release of inflation figures to guide monetary and fiscal policy decisions.

He also confirmed that preliminary work had commenced on the GDP rebasing exercise, which would capture emerging economic sectors and further solidify Nigeria’s position as Africa’s largest economy.

Strategic budgetary allocations for economic growth

While previous administrations struggled with allocating a substantial chunk of the national budget to key sectors, Bagudu and his team have ensured that resources are allocated to projects based on national priorities and needs.

For instance, the 2025 budget allocated N4.06 trillion to infrastructure development, the highest infrastructure allocation in recent years.

For context, the 2025 budget aims to complete the Abuja-Kaduna railway project and the Lagos-Ibadan rail line. It also seeks to rehabilitate the Itakpe-Ajaokuta rail line and construct 12 station buildings and track-laying works at railway ancillary facilities in Agbor.

The Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway projects are also given notable allocations. Defence and Security got N4.91 trillion, Education got N3.5 trillion, and Health got N2.4 trillion.

These are significant allocations when compared with previous years. It is important to note that the health sector allocation is the highest percentage allocated to the sector since 2001.

Accountability through digital monitoring

Also commendable is the budget implementation and monitoring drive of the Bagudu team.

As part of its innovative approach, an application called ‘Eyemark’ was developed to provide citizens feedback on implemented projects. The ministry has tracked and monitored the performance of federal government programs and projects funded from the 2023 capital budget appropriation against targets set in the National Development Plan.

“Over 500 selected projects of the federal government implemented in 2023 capital appropriation were monitored to ensure accountability and value for money,” the Ministry said.

Evident from his first 18 months in office, Bagudu’s leadership appeared to have ushered in a new era of fiscal dexterity, responsibility, and strategic planning. His ability to deliver a timely budget, prioritise critical sectors, and implement a robust monitoring system will, in the long run, have a significant impact on Nigeria’s economic trajectory.

The 2025 appropriation act represents a strategic fiscal roadmap to stimulate economic recovery, job creation, and social development. As this administration approaches its second year in office, Bagudu’s contributions as the Minister of Budget and Economic Planning are a testament to their dedication to restoring fiscal stability and driving sustainable growth.