Budget and Economic Planning Minister Abubakar Bagudu has dismissed claims in some quarters that the Federal Government’s spending under President Bola Ahmed Tinubu favours particular regions of the country.
Bagudu said federal expenditure on security, infrastructure and support for livelihoods is driven by national priorities and aimed at addressing the needs of Nigerians irrespective of their location.
He stated this while delivering a keynote address at the Federal Appointees Strategic Summit on the presentation and review of ministerial and Ministries, Departments and Agencies (MDAs) budget implementation.
The minister said security expenditure, for instance, is targeted at protecting communities affected by insecurity, while investments in roads and other infrastructure are intended to improve movement, connectivity and economic activities across the country.
Bagudu urged federal appointees to have a proper understanding of the policies and economic reforms of the Tinubu administration and to explain their impact more effectively to Nigerians, especially people at the grassroots.
According to him, better communication of government policies was necessary to enable citizens to understand both the difficulties created by the reforms and the objectives behind them.
Bagudu said the Tinubu administration inherited a difficult economic situation and decided to remove the petrol subsidy and reform the foreign exchange market as part of measures to address deep-rooted economic imbalances.
He acknowledged that the reforms had contributed to the cost-of-living pressures experienced by Nigerians, particularly when combined with developments in the global economy.
The minister said the government did not anticipate the extent of the economic turbulence that would follow the reforms and the international pressures that subsequently affected economies around the world.
Despite the difficulties, he said the administration remained focused on creating a stronger and more sustainable economy capable of delivering growth that benefits a wider section of the population.
Bagudu said one of the major outcomes of the reforms is an improvement in government revenues and greater financial allocations to the federal, state and local governments to perform their constitutional responsibilities.
Bagudu said the stronger financial position of states in the current period has created greater room for them to spend on infrastructure, education, security and other responsibilities assigned to them by the constitution.
He added the improvement in public finances is also reflected in some broader economic indicators, including the country’s revenue-to-Gross Domestic Product (GDP) ratio.
On taxation, the minister said the ongoing reforms are intended to make the tax system more efficient and improve compliance, rather than impose unnecessary hardship on citizens.
He, however, acknowledged that Nigerians are still facing significant economic pressures as the government pursues the reforms.