Bagudu: Economic Reforms Strengthening Political Cohesion

James Emejo in Abuja

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, yesterday, said ongoing economic reforms were progressing in the right direction, with an unusual outcome of strengthening political consensus in the country.

Bagudu spoke at a meeting with officials from the Agence Française de Développement (AFD) Microeconomic Risk Analysis Due Diligence Mission, led by its Country Director, Mr. Jacky Amprou.

He explained that the reforms had fostered unity of purpose between the executive and legislative branches, as well as among the three tiers of government.

Bagudu emphasised that under Tinubu’s leadership, the country’s federal system had been strengthened, with better coordination among the federating units through the effective management of National Economic Council (NEC), a body constitutionally responsible for guiding the country’s economic growth.

The minister stated, “The reforms have improved cooperation between the executive and legislative branches of government. The National Assembly has been very supportive of the president’s bold economic initiatives.

“Of equal importance is the friendly relationship among the federal, state, and local governments.”

He said macroeconomic reforms implemented over the past two and a half years had begun to show tangible results, including improved macroeconomic stability, heightened investor confidence, and an unusual, yet, notable increase in political cohesion across the federation.

In a statement, Bagudu stressed that despite regional political instability and the challenging timing of reforms, Nigeria remained committed to implementing bold economic measures.

He observed that the increasing political consensus around the reforms had helped stabilise the exchange rate, maintain investor confidence, and reduce the usual pre-election uncertainty often linked with emerging markets.

Reiterating the president’s economic vision, the minister stressed the country’s goal to develop a one-trillion-dollar economy within the next five years, driven by inclusive and decentralised growth.

At the heart of that vision, he said, was the Renewed Hope Ward Development Plan, a grassroots-driven initiative designed to map Nigeria’s economic potential across its 8,809 wards, gather local-level priorities, and elevate them to the national stage, and promote a fairer distribution of growth and federal resources.

Bagudu explained that under the framework, each ward’s economic potential, including agriculture, skills, resources, and industry, were being mapped, emphasising that development planning will originate at the ward level, feed into state development plans, and, ultimately, shape the national development plan.

He stated that agriculture, local production, and value chains would be prioritised to promote job creation, food security, and household income growth.

Bagudu reaffirmed the government’s strong commitment to private-sector-led growth, with reforms aimed at making Nigeria more attractive to both local and foreign investors, despite challenges related to revenue generation, high interest rates, and global economic pressures.

He acknowledged the short-term difficulties and pains of the reforms, but said they were necessary, critical, and irreversible for Nigeria’s long-term stability and sustainable growth.

Earlier, in his remarks, Amprou stated that AFD was not focused on a single project, but on a comprehensive review of Nigeria’s macroeconomic and structural reforms.

He added that the agency was updating its country risk and economic assessment, a regulatory requirement that will guide future engagements and financing decisions.

Amprou acknowledged that significant reforms had been implemented since 2022, leading to notable changes in Nigeria’s economic landscape.

He said the mission aimed for a deeper understanding of the government’s plans for: consolidation of reforms, sustained economic growth, and acceleration of national development.

Permanent Secretary, Federal Ministry of Budget and Economic Planning, Dr. Deborah Odoh, welcomed the AFD delegation and other development partners, and emphasised the importance of strategic alignment with Nigeria’s 2026–2030 National Development Plan.

Odoh reiterated Nigeria’s stance as an attractive destination for economic growth. She expressed appreciation for ongoing international partnerships, while emphasising that the government expects all development support to align with national priorities.

Both parties agreed that future AFD activities in Nigeria must strictly align with the government’s development priorities. Discussions also included preparation of a new AFD–Nigeria Country Partnership Agreement, as the current five-year framework concluded in 2025, ensuring coherence with Nigeria’s upcoming 2026–2030 National Development Plan.