FG rules out return of subsidy, vows to sustain economic reforms

The Federal Government will sustain its economic reforms and will not return to subsidy, Minister of Budget and Economic Planning, Sen. Abubakar Atiku Bagudu, said on Monday in Abuja.

According to the News Agency of Nigeria (NAN), Bagudu spoke at the 32nd Nigerian Economic Summit, themed “Growth That Works: Delivering Jobs, Productivity and Shared Prosperity.”

He said the reforms were aimed at stabilising the economy, improving productivity, creating jobs and expanding prosperity for Nigerians.

“There will be no return to subsidy. We recognise the need to calibrate and do better,” Bagudu said.

He said the administration remained committed to reforms while strengthening domestic production, expanding infrastructure and addressing poverty.

According to him, Nigeria’s economy has recorded positive growth for two consecutive quarters, while inflation and interest rates were declining.

Bagudu said revenue allocations to federal, state and local governments had increased, with some states and local governments recording more than fivefold increases in monthly revenue.

He attributed the increase to the distribution of revenue among the three tiers of government to support their constitutional responsibilities.

The minister said the government was targeting a one-trillion-dollar economy, adding that achieving the goal required sustained growth and broader participation in economic activities.

He said President Bola Tinubu had challenged the administration to pursue an economy that included everyone and generated greater prosperity.

Bagudu said cooperation among federal, state and local governments was critical to coordinating fiscal and monetary policies and improving spending on security and infrastructure.

He said the government was also prioritising grassroots development, skills acquisition, early childhood development and support for small and medium-sized enterprises.

The minister disclosed that more than six billion dollars had been mobilised from the World Bank and other development partners to strengthen household resilience and economic opportunities.

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He said improved agricultural productivity and support for domestic production would be essential to creating jobs, raising incomes and improving livelihoods.

Bagudu stressed the importance of an effective private sector, saying investors needed confidence in the economy to expand businesses, increase productivity and generate employment.

He said the government would continue implementing reforms while adjusting policies to address poverty and improve economic outcomes.

“We are staying the course,” Bagudu said, reaffirming the administration’s commitment to its reform agenda.

He urged Nigerians to recognise the achievements recorded so far and support efforts to sustain the reforms.