ABUJA (Sundiata Post) – Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has emphasised the urgent need for a well-functioning financial system to attract the resources required for the nation’s development.
Speaking at the management retreat of the Nigerian Financial Intelligence Unit (NFIU) in Abuja on Monday, Bagudu outlined that a sound financial system with high integrity is crucial for advancing Nigeria’s development agenda.
“Our national aspiration, outlined in Agenda 2050, calls for an annual investment of at least $100 billion to achieve a GDP per capita of $33,000 or more by 2050,” Bagudu stated. “Currently, we are far from this target.” He acknowledged that the existing financing levels are insufficient but highlighted that the administration under President Bola Tinubu has initiated bold economic reforms aimed at boosting revenue.
Bagudu pointed out the disparity between Nigeria’s $20 billion federal budget and those of comparable countries, such as Brazil and Indonesia, which have budgets of $750 billion and $210 billion respectively. He argued that to bridge this gap and support the development plan, Nigeria must foster a financial system that instills confidence and attracts both domestic and international investments.
“The plan is to leverage private sector and capital market funds for our development objectives,” Bagudu explained. “To achieve this, we must ensure our financial system is trustworthy and sound.” He also suggested that rating agencies might be more favorable if Nigeria demonstrates greater financial integrity and stability.
Bagudu praised the NFIU for its commendable performance but urged for improved communication of its activities to enhance public recognition. He asserted, “Our credit rating should reflect our progress. We have implemented measures similar to those in countries that have seen substantial improvements in credit ratings. Our institutions, especially the NFIU, are key to this advancement.”
The Minister concluded by stressing the importance of effective communication in reinforcing the financial system’s credibility. “It is vital that we highlight our achievements and address issues of wrongdoing to strengthen the integrity and effectiveness of our financial sector,” he added.
