FG Sees Early Wins from Economic Reforms, Eyes $1 Trillion Economy

• The Federal Government says its economic reforms are yielding results, citing increased state and local government revenues and a reduction in public debt.

• This is as announced by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu.

The Federal Government has announced early signs of success from its ongoing economic reforms, with increased revenues for state and local governments and a reduction in national debt.

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, disclosed this during a meeting in Abuja with the new World Bank Country Director for Nigeria, Mr. Matthew Verghis.

“Our reform measures are going as planned,” Bagudu said, noting that “we are seeing encouraging outcomes like significant revenue increases at the sub-national levels and substantial debt reduction.”

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Bagudu expressed gratitude to the World Bank, citing its recent Nigeria Development Update report as proof of progress.

He reiterated the government’s vision to grow the economy to $1 trillion, emphasising that “we need a clear strategy to achieve double-digit growth.” He also called for continued support from political leaders, labour unions, and the private sector to sustain the reforms.

World Bank Country Director Matthew Verghis commended Nigeria’s efforts, drawing a parallel to India’s bold reforms in the 1990s.

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“Difficult policy decisions then laid the foundation for long-term growth and poverty reduction,” he said. Verghis reaffirmed the Bank’s commitment to supporting Nigeria in job creation, agricultural productivity, financial inclusion, and broader economic growth.

According to the National Orientation Agency, 33 states and the Federal Capital Territory have reduced their domestic debt by about N1.85 trillion between June 2023 and December 2024.

This was largely attributed to the Tinubu administration’s reforms, including petrol subsidy removal and the floating of the naira, which boosted revenue at all government levels.