The role of the Minister of Budget and Economic Planning, Atiku Bagudu, has set the tone for the fiscal year, as stakeholders agree that the 2025 budget is an ambitious statement and urge a holistic implementation, ARINZE NWAFOR writes

Stakeholders affirm the economy’s managers need concerted efforts to implement the N54.99tn 2025 budget President Bola Tinubu recently signed to reposition the economy.

The stakeholders who spoke with The PUNCH in separate phone interviews described the budget as “ambitious.”

The budgetary breakdown shows an estimated revenue of N40.89tn and a deficit of N14.1tn, which the government hopes to cover through increased oil sales and tax collection, among other means. The PUNCH has earlier reported that stakeholders have voiced concerns about the deficit financing possibilities.

It set out key assumptions for the 2025 fiscal year, including 2.12 million barrels per day of oil production, a $75 oil price, an exchange rate of N1,500, 4.6 per cent Gross Domestic Product growth, and a 15 per cent inflation rate.

Former president of the Chartered Institute of Bankers of Nigeria, Prof Segun Ajibola, observed that the 2025 budget represented the government’s “desperate moves to reposition the economy”, and while it was ambitious, it was still achievable.

The Minister of Budget and Economic Planning, Atiku Bagudu, is tasked with stewarding the administration’s fiscal plan in the N54.99tn budget.

The Chief Executive Officer of Economic Associates, Dr Ayo Teriba, called for optimism in the ability of the executioners of the budget, stating “The Ministry of Budget and Economic Planning, the Budget Office, the National Assembly, the Presidency, Ministry of Finance, all must be given the benefit of the doubt that they must be privy to facts that we may not be privy to.

“We have no choice but to take the announcement at face value and hope that their aspirations will be realised.”

Teriba addressed his scepticism about the financing of the budget, noting, “I do not think that the government is quite up and doing in trying to look for new revenue sources and in trying to do tax reforms.

“The Minister of Finance is speaking about alternative sources of funding to shift away from debt financing. We as Nigerians have to wait and get updates from the government.”

Budget ministry overview

The Ministry of Budget and Economic Planning under Bagudu drives the economic segments of the administration’s 8-point ‘Renewed Hope Agenda,’ which includes food security, poverty eradication, economic growth, job creation, access to capital, inclusion, rule of law, and anti-corruption.

The budget ministry’s role extends beyond budget formulation to setting national economic priorities, coordinating their implementation, and ensuring budget allocations are aligned with economic recovery goals.

According to a statement, Bagudu has “in less than two years (as budget minister) worked to actualise the (President) Tinubu administration’s Renewed Hope Agenda (and) his leadership has driven fiscal efficiency and positioned Nigeria towards economic sustainability and recovery.”

He is tasked with ensuring national unity and economic stability by designing policies that promote economic inclusivity and social justice.

Also during a chat with Business Editors, the minister pointed out that the government was working hard to ensure the effective implementation of the 2025 budget, stressing that the benefits of the government’s fiscal policies were beginning to manifest.

The minister affirms that he serves to provide leadership by emphasising strategies to enhance economic resilience, especially amidst global economic challenges, ensuring the country remains a viable investment destination.

“One of Bagudu’s primary responsibilities has been aligning national budgets with Tinubu’s development strategy,” the statement read. “His leadership saw the smooth passage of the 2023 Supplementary Budgets and the 2024 fiscal estimates, securing their approval with minimal legislative resistance—a contrast to previous years.

“He has also played a crucial role in stabilising Nigeria’s budgetary framework and ensuring prudent resource allocation.”

Bagudu hails his leadership of the budget ministry for submitting the 2024 budget on time among his accomplishments. The budget was touted to “reduce the fiscal deficit, increase capital expenditure, and support vulnerable populations affected by ongoing reforms.”

The previous year’s budget initial expenditure was N28.77tn, and the notable allocations included N4.06tn for infrastructure, N3.5tn for education, and N2.4tn for healthcare, making for the highest percentage allocation to the sector since 2001.

The statement continued, “Bagudu’s fiscal strategy has also led to sustained GDP growth, exceeding three per cent for three consecutive quarters—a significant achievement compared to industrialised nations struggling with lower growth rates. Additionally, his ministry has reduced reliance on deficit financing, bringing Nigeria’s deficit-to-GDP ratio from 6.1 per cent in 2023 to under 4 per cent in 2024.”

Bagudu received praise for championing tax reforms to enhance revenue generation while reducing the burden on businesses.

Other highlights of the budget minister’s role include working closely with the National Assembly to ensure financial projections align with long-term development objectives and ensuring non-recourse to excessive borrowing.

Also, he reportedly has worked to ensure fiscal transparency, not impeding the National Bureau of Statistics’ ability to deliver timely economic data releases, spearheading the GDP rebasing exercise and launching ‘Eyemark,’ a digital platform allowing public feedback on government projects.

Budget accountability

Former CIBN president Ajibola submitted that the minister performs oversight functions assessing the budget implementation.

“The budget ministry’s public assessment platform, Eyemark, should be pursued with rigour so that accountability as far as budget implementation will be put on,” Ajibola stated. “There needs to be a way of assessing progress in ministries, departments and agencies and putting remedial plans in place to redirect the implementation modalities where benchmarks are not being met and not waste another year in post-mortem evaluation.

“However robust, realistic, desperate and ambitious those (budgetary) assumptions may be, the amount of implementation by the people in the ministry will make things happen and if they are not doing the right thing, it will be difficult.”

Also, the Director of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, called attention to financial propriety in budgetary implementation.

Yusuf hailed the budget ministry for “putting the figures together and also advising in many areas concerning economic management,” but warned that it was most important to ensure the budget ministry reduced the variance between what is appropriated and what is eventually released, especially concerning capital budgets.

“The variance is getting too wide, and I think it is something that we need to close to ensure the credibility of the budget document,” the CPPE director stressed.

“During the budget defence of many of the MDAs, they complained about poor capital budget implementation due to challenges of bureaucracy and maybe challenges of availability of funds. Whatever it is, it is important to close the gap between what is appropriated and what is eventually released and implemented as far as the capital budget is concerned.”

Yusuf added that the budget ministry needs to ensure that there is alignment between the budget, the medium-term expenditure framework, the short-term economic plan, and the long-term national economic plan.