Nigeria’s economic transformation is gathering pace, with the federal government channeling trillions of naira into key sectors to drive growth, enhance food security and strengthen industrial capacity.
The Minister of Budget and Economic Planning, Atiku Bagudu, at a media interactive meeting on Monday, reaffirmed the incumbent administration’s commitment to long-term economic stability, emphasising that the difficult decisions taken, such as removing fuel and electricity subsidies, are already setting the nation on a path to prosperity.
Reflecting on global parallels, Bagudu noted that Saudi Arabia took a similar route, embarking on a nine-year reform journey that saw the removal of subsidies and the introduction of new revenue measures.
However, he noted that Nigeria’s approach is even more ambitious, as the government pushes forward with bold initiatives despite the complexities of a democratic system.
According to him, President Bola Tinubu remains focused on his vision of economic expansion, ensuring that infrastructure is restored, insecurity is tackled, food security is strengthened and social protection is prioritised.
“A major highlight of the ongoing reforms is the N1.5 trillion being injected into the revamp of the Bank of Agriculture (BOA) to provide much-needed financing to farmers and agribusinesses.
“In addition, N500 billion is being directed to the Bank of Industry (BOI) to bolster manufacturing and industrial development, while N1 trillion is being allocated to the solid minerals sector, unlocking the potential of a resource base that could rival oil in revenue generation.
“Signs of progress are already visible across the economy. Improved security has led to increased agricultural output, resulting in bumper harvests and lower food prices in some states. Inflation, particularly food inflation, is beginning to taper, offering relief to households. The oil and gas sector is regaining momentum, driven by strategic policies, while allocations to states have tripled, providing sub-nationals with greater financial capacity to drive development. Investors are increasingly paying attention to Nigeria’s economy, recognising the opportunities emerging from its structural reforms”, the Minister explained.
Bagudu also revealed that the federal government is also prioritising cleaner and more affordable energy solutions, with targeted funding for compressed natural gas (CNG) initiatives, including the introduction of CNG-powered water pumps, which are 60 percent cheaper to operate than petrol alternatives.
These initiatives, he emphasised, align with Nigeria’s wider economic strategy to reduce dependence on imported fuel and promote sustainable alternatives.
Bagudu stressed that rather than focusing solely on debt repayment, the administration is prioritising rapid economic expansion to create a more robust revenue base. With a clear target to increase Nigeria’s revenue-to-GDP ratio from 9 percent to 18 percent, the government is laying the foundation for a stronger fiscal position, increased tax revenue, and greater financial sustainability.
“A key aspect of this strategy is President Tinubu’s commitment to domestic petroleum refining, which has contributed to foreign exchange stability by reducing the pressure on forex demand for fuel imports.
“Expanding the economy at a rapid pace is a far more strategic approach than prioritizing immediate debt repayment. A robust and growing economy naturally generates higher tax revenues, providing the government with the financial capacity to meet its obligations while also funding critical sectors.
“For too long, Nigeria has under-invested in key areas, leading to widespread inefficiencies and resource constraints across essential institutions, including the police and other public services. This lack of adequate funding has hindered their ability to function optimally, affecting national security, infrastructure development, and service delivery. By directing resources toward economic expansion—through investments in agriculture, industry, infrastructure, and emerging sectors—the government can create a more sustainable revenue base, strengthen institutional capacity, and ensure long-term financial stability”, the Minister stated.
As work continues on the N49.7 trillion 2025 budget, he said the incumbent administration remains resolute in its drive to restore critical infrastructure, enhance security, ensure food security, and sustain social protection measures. With these sweeping reforms, Nigeria is on course for a more resilient and prosperous economic future.
