Minister of Budget and Economic Planning, Atiku Abubakar Bagudu has faulted a report attributed to him during last Friday’s interactive session with the joint committee of the Senate Committee on Finance, Banking, Insurance, and Finance Institutions, and the Committee on Appropriation.
The story published in the online edition of the Nigerian Tribune was titled, “Budget, Agriculture Ministers Fault Subsidy Removal, Floating of Naira,”
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A statement signed by Mrs Folasade Boriowo, Director of Information Ministry of Budget and Economic Planning, described the story as ‘a misrepresentation of the presentation of the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, at the joint committee session of the Senate Committee on Finance, Banking, Insurance, and Finance Institutions, and the Committee on Appropriation, held on Friday, February 9, 2024.”
According to Mrs Boriowo, “At no time in his short presentation did the Minister make any direct comment on the removal of fuel subsidy or the floating of the Naira. Therefore, he could not have faulted the two policies. Besides, Senator Bagudu understands very clearly that as the Minister of Budget and Economic Planning, his job is to defend and promote all policies of the government.
“References to all his public utterances and media interventions on public policy, particularly on these two substantive economic policies, show his robust defence of them not only because he is a minister who is bound by the decisions of the administration, but also because he is convinced that the policies are correct and represent bold measures to reposition the national economy for sustainable growth.”
Mrs Boriowo further added “For the avoidance of doubt, this is what the Minister of Budget and Economic Planning said: Answering questions from distinguished senators on the effects of the 2024 Budget on the economy, Minister Bagudu thanked the Senate for its support for the economic policies of the President Bola Tinubu administration, saying the Upper Chamber had demonstrated its understanding that the bold choices that were made by the president were necessary to reposition the country. He assured the joint committee that its comments on the appropriation law had been noted for the calibration of the fiscal estimates and the consequential implementation policies.”
He said, “Choices that are made, or are not made or are being made occasionally require calibration and other supportive measures for the gains to be felt. We feel very encouraged and I am sure we will do more under the leadership of the Co-ordinating Minister of the Economy to take onboard all the suggestions so that we will continue to interrogate what we are doing to deliver on the promises that have been made.
“On the achievement of the administration so far, we believe that we have turned the bend and we are on our way to progress. We appreciate the urgency to do some more interventions to ensure that the positive effects are felt.”
On the Committee’s question on the effect of the exchange rate on the 2024 Budget, he said, “When the budget was brought to you, we appreciated that it was a work-in-progress just like the government itself. When we brought the budget, we brought it with the exchange rate, for example, of N750/$. But in your wisdom, you increased it, and Mr President graciously recognised that democracy is a give-and-take and that institutions matter, he accepted and signed it into law.
“Today, the exchange rates have moved because the Central Bank, rightfully exercising its mandate took some measures. We are studying the effects of those measures and, we will calibrate, with your support as always, to ensure that we respond appropriately. The exchange rate for budget purposes is computed on an average basis, not on a spot basis. We are not where we want to be, but we hope that with all the measures that are being taken, inflation will moderate and the inflationary effects of those movements would be less.”
Responding specifically to the issue raised by Senators Adamu Aliero and Tokunbo Abiru on whether the federal government could use the accruing additional revenue to lower debt service, the Minister explained, “Unfortunately, when the exchange rate moves it also has consequential effects on other prices, particularly fuel prices, and electricity subsidy. But we hope things will abate so that it will not even complicate the budget implementation process. But with your support, the country is turning the bend, and measures have been taken, of which the Budget and Economic Planning Ministry has been invited to all meetings by the Co-ordinating Minister of the Economy on infrastructure, agriculture, and power interventions, I am sure the results will be seen immediately.”
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