The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has called on the leadership of the Central Bank of Nigeria to reassess its stance on intervention programs, particularly those targeting the agriculture sector.
Bagudu made this appeal on Thursday while speaking at the CBN’s Monetary Policy Forum in Abuja.
The minister commended the collaborative efforts between the fiscal and monetary policy authorities, noting that such cooperation was essential for the overall economic health of the country. He acknowledged the CBN’s position that it would not directly intervene in certain sectors but expressed the fiscal authority’s belief that more investment should be directed towards boosting domestic production, especially given Nigeria’s strong potential in agriculture and solid minerals.
Bagudu highlighted the importance of increased investment in agriculture, citing security improvements in regions such as the Northwest and Northeast, which had led to better production in areas previously challenged by insecurity. He pointed out that this growth in agricultural output had contributed to a reduction in food prices across the country.
The minister specifically referenced the significant agricultural gains in Borno State, which had seen harvests comparable to pre-Boko Haram times, and improvements in Kaduna and other states. He emphasized the importance of seizing this opportunity to sustain and build on these gains, acknowledging that while past interventions may not have always yielded expected results, lessons learned could help refine future efforts to support domestic production and manage inflation.
Bagudu also reaffirmed that the administration’s economic reforms were yielding positive results, setting the country on a path to inclusive growth and development, a fact recognized by global business leaders and rating agencies. He noted that the past 18 months had seen greater collaboration between fiscal and monetary authorities, facilitated by the expertise of key figures such as the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and CBN Governor, Olayemi Cardoso. According to Bagudu, President Bola Tinubu’s deep understanding of fiscal and monetary policy dynamics had been instrumental in balancing the administration’s economic goals.
According to the minister, “Borno State recorded one of the highest harvests comparable to the pre-Boko-Haram era. Kaduna State is improving, and many other states are improving.
“So, how do we ensure that we don’t miss that opportunity? Yes, we might have been disappointed with some of the interventions in the past, but maybe we have gained knowledge to calibrate and ensure that we do better in a way that will support further growth in domestic production because the transmission mechanism between domestic output and productivity gains, and inflation effort is very, very strong.”
“In the last 18 months, we have seen increased collaboration between fiscal and monetary authorities, and something maybe least appreciated is that we have a president who himself is very knowledgeable on the trade-offs involved between fiscal and monetary policy and the Renewed Hope Agenda in a way is a balancing act,” he added.
