Effective budgeting and economic planning are fundamental growth drivers in any economy. In this piece, JOSEPH INOKOTONG chronicles the Budget and Economic Planning Ministry milestones under Abubakar Bagudu’s watch.
Budget planning is the cornerstone of effective governance, culminating in inclusive growth. It involves the strategic allocation of limited resources to diverse policy priorities, and a complex landscape to navigate, as governments grapple with enormous challenges such as limited resources, competing policy priorities, and economic uncertainty.
In emerging or fragile countries, this can be compounded by a range of additional factors including establishing a robust financial infrastructure, managing rapid economic changes, fostering sustainable growth while addressing disparities, and managing the effects of conflict. Regardless of country context, successful service delivery, financial stability, and citizen well-being depend on effective planning and budget management.
The foundation of effective budgeting and planning begins with an in-depth analysis of economic indicators. These statistical metrics help to evaluate various aspects of an economy’s performance, providing insights into the overall health, trends, and stability of an economy.
In this regard, when Senator Abubakar Bagudu was sworn in on 21 August 2024 as Minister of Budget and Economic Planning, he saw his mission as coordinating the recovery of a dying economy that needed life-saving oxygen to survive and move on the path of the macro-economic stability required for domestic and foreign investment inflow.
He was on familiar ground. He had served as a special assistant to the Minister of National Planning, Mr. Kalu Idika Kalu, under President Ibrahim Babangida’s military government.
His legislative experience as a senator, representing Kebbi Central, 2009-2015, and executive experience as governor of Kebbi State, 2015-2023, came in handy as he quickly settled down to his main task of planning the economy through systematic budgeting and coordination of consensus around issues of national concerns.
Budget Function
He used his experience as a former federal legislator to successfully negotiate the 2023 Supplementary Budgets and the 2024 fiscal estimates and their amendments with the National Assembly. All were passed and assented to without the usual rancour that attended such exercises in the past.
The 2024 Budget was submitted to the National Assembly as and when due despite the delay in the appointment of ministers. The President assented to it on 1st January 2024 in line with the budget cycle of January-December.
The N28.77 trillion budget achieved its objective of reducing the fiscal deficit to support macroeconomic reform objectives of addressing low investments and low revenue issues, increasing capital expenditure, supporting the vulnerable populations affected by reforms, and increasing allocations to key sectors and innovative schemes.
The 2023 Supplementary Budget of N819 billion was re-negotiated to provide N500 billion for intervention in agriculture, energy transition, presidential conditional grant to Nano businesses, and Medium Small, and Micro Enterprises (MSME) credit support.
Another N2.17 trillion 2023 Supplementary Budget focused on Security, Infrastructure (Roads and FCT), Agriculture, Wage awards to public servants, and cash transfer provisions were successfully negotiated.
The N6.2 trillion (2024 Amendment Act), which focuses on providing counterpart and equity contributions for Renewed Hope Infrastructure Projects, providing a minimum wage, and additional funding for water, irrigation, and dam development, as well as agriculture and food security initiatives, was also successfully negotiated with the National Assembly.
Budget Implementation and Monitoring Function
The Federal Government programmes and projects funded by the 2023 Capital Budget Appropriation were monitored against targets set in the National Development Plan. Over 500 selected Federal Government projects implemented in 2023, Capital Appropriation, were monitored to ensure accountability and value for money.
An application called Eyemark was developed to provide citizens with feedback on projects being implemented.
The review and revision of the National Development Plan, 2021-2025, to accommodate the President’s eight priorities and Renewed Hope Agenda is said to be 95 percent completed.
National Policy Coordination Function
Implementing the National Poverty Reduction with Growth Strategy (NPRGS), to address Multidimensional Poverty and Job creation in Nigeria was coordinated with the relevant Ministries, Departments, and Agencies (MDAs) of the government across 36 States and the Federal Capital Territory (FCT).
In 2023, the FCT and 34 states were reimbursed N438.3 billion. The programme has a $750 million credit portfolio. So far, 67,038 jobs have been created in the first phase of the 2023 implementation, the Ministry said.
Also, it pointed out that the recommendations of the Multidimensional Poverty Index Report across 36 States and FCT were implemented to address the challenges of deprivation and access to social services. The Performance Report of Nigeria’s Economy in 2023 was published. It offered the opportunity to assess the performance of government policies and programmes within the period under review.
The bottom-up approach to government interventions was implemented with the National Population Commission (NPC), National Bureau of Statistics (NBS), and the States from ward level to Local Government Areas.
The Joint Planning Board and National Council Development Planning meetings were organised in 2023 to coordinate planning at the subnational level and build staff capacity for accelerated economic growth and development.
A study on the impact of fuel subsidy removal on the Nigerian economy, which also advised the government on ways to cushion its negative effect on the citizens, was conducted and published.
Pipeline bankable projects that could be implemented through Public Private Partnership (PPP) to address infrastructure deficit and attract foreign direct investment were selected.
The Ministry successfully coordinated the implementation of the NG-CARES programme across the 36 states. NG-CARES is a World Bank/FGN multi-sectoral programme designed to provide immediate emergency relief to vulnerable and poor Nigerians, smallholder farmers, and Nano, Micro, Small, and Medium Enterprises (MSMEs) that were adversely affected by the COVID-19 pandemic.
In 2024, the NG-CARES Programme transitioned from “Nigeria Covid-19 Action Recovery and Economic Stimulus (NG-CARES) Programme” to “Nigeria Community Action for Resilience and Economic Stimulus,” shifting focus from COVID-19 recovery to building the resilience of the poor and vulnerable, especially entrepreneurs. The interventions of the NG-CARES programmes in 35 states plus FCT are said to have impacted seven million poor and vulnerable households.
The Ministry coordinated the inaugural meeting of the National Council on Nutrition (NCN), chaired by the Vice President. The outcome of the meeting was presented to all the Governors at the NEC meeting, which eventually led to the constitution of the National Core Working Committee on Nutrition, housed in the Office of the President. The ministry collaborated with the House of Representatives Committee on Nutrition and Food Security to secure the concurrence of the Speakers of the 36 State Houses of Assembly to establish the State House of Assembly Committee on Nutrition and Food Security in all states.
On the effective coordination of the United Nations Food Systems Transformation Pathways implementation in the 36 States, all the Commissioners of Agriculture, Health, and Economic Planning agreed to implement it based on their state’s comparative advantage.
As the Secretariat of NCN, the Ministry coordinated the dialogue and engagement of Faith-Based Leaders to accelerate the achievement of Nutrition in Nigeria. The Dialogue was also a platform to launch Christian and Muslim Perspectives of Key Messages on Maternal, Infant and Young Child Nutrition (MICYN). The Ministry ensured the Institutionalisation of Nutrition Budget Tagging Systems in pilot MDAs as one of the outcomes of the World Bank ANRiN project.
Innovations
To foster efficient utilisation of public resources and ensure that no citizen is left behind, the Federal Ministry of Budget and Economic Planning has been advocating mainstreaming the use of geospatial evidence and insights from Geospatial analysis for the design and implementation of public programmes and projects in Nigeria.
The key strategies employed by the Ministry to achieve the mainstreaming of the use of geospatial evidence and insights in the public sector include sensitising governments at the subnational level and government agencies at the national level. In collaboration with the Infrastructure Concession and Regulatory Commission (ICRC), the Ministry successfully concessioned the Cassava bio-ethanol value chain in the six geographical zones. The ongoing pilot projects are said to have created over 8,000 direct and indirect jobs.
The project’s objectives are to boost cassava production, develop the value chain to address food insecurity and create employment through entrepreneurship along the cassava value chain.
The revised National Social Protection Policy, coordinated by the Ministry, is ready for launch. All 36 governors at the NEC meeting agreed that the President should launch the policy as a guide for managing the Social Protection program in Nigeria.
Other innovations include the Inaugurated Community of Practice of Stakeholder MDAs on implementation of the National Social Protection Policy, and timely release of monthly inflation figures to guide policy decision-making. In addition, the release of quarterly GDP numbers and other indicators are consistent with the timeframe. It ensures that the National Bureau of Statistics is independent.
Preliminary work has already commenced on rebasing the GDP numbers to cover emerging economic sectors. When completed, this will boost the country’s GDP and strengthen its prime position as the largest economy in Africa.
Through the NEC, the Ministry developed the Action Plan to prevent Crude Oil Theft, thereby boosting oil production. The effective coordination and engagement with development partners and NGOs has enhanced Development Assistance to Nigeria. The National Transport Policy for Nigeria was developed in collaboration with the Ministry of Transportation.
In a budget cycle, different stakeholders often have divergent priorities and preferences. However, diverse perspectives bring a wealth of insights and ideas to the table, enriching the decision-making process. Incorporating various viewpoints ensures a more comprehensive understanding of the potential impacts of budgetary decisions.
Actively engaging with diverse stakeholders throughout the budget planning process as the Ministry has done, and using data to prioritize investment objectively can mitigate any negative impact of diverse stakeholder opinions. Communicating how decisions are made, and the factors considered, can reduce suspicions and foster collaboration. Transparent and inclusive decision-making processes help build trust.
These seem to have been achieved so far as marked dissension to budget and planning implementation has not been very visible in the period under review.
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