Bagudu: Reinventing Budget, Economic Planning for Sustainable Development
In this piece, James Emejo examines the remarkable achievements recorded by the Special Duties Department of the Federal Ministry of Budget and Economic Planning (FMBEP) under Senator Abubakar Atiku Bagudu’s watch – feats that have continued to propel the nation’s economic trajectory
Budgeting and economic planning are crucial for the country’s development and stability, serving as blueprints for managing national resources, guiding economic growth, and addressing the needs of citizens.
In recent past, Nigeria’s developmental challenges, especially around resource allocation, have persisted for decades, mainly rooted in structural, governance, and policy-related issues.
In fact, economic management was marked by poor resource allocation and budgeting and misalignment of budget which often prioritises recurrent expenditure (salaries, overheads) over capital investment (infrastructure, education, health).
It was further characterised by low budget implementation rate as approved budgets are often not fully implemented due to revenue shortfalls, delays, or inefficiency.
Besides political influence, economic planning and budgeting was also hampered by the fact that about 85 per cent of the country’s export earnings and 50 per cent–60 per cent of government revenue came from oil – making it vulnerable to global oil price shocks, leaving key sectors like agriculture and manufacturing underfunded.
A New Era
However, the remarkable achievements by the Special Duties Department of the Federal Ministry of Budget and Economic Planning (FMBEP) between between September 2023 and May 2025, remains a testament to the visionary and strategic political leadership of the Minister of Budget and Economic Planning, Senator Abubakar Bagudu.
His ministry plays a critical role in national development by overseeing budget preparation, economic planning, and monitoring implementation.
The mandate also includes among other things, coordination of the Medium-Term Expenditure Framework (MTEF) to guide budget projections, and ensures alignment of the budget with national development priorities.
It develops national development plans, such as the National Development Plan (NDP), Vision 2050, and other long-term frameworks; coordinates sectoral plans and policies to ensure consistency with national goals, and monitors and evaluates implementation of development strategies.
In addition, FMBEP analyses the macroeconomy and offers policy advisory to government; supports fiscal sustainability and economic growth strategies, and advises the government on economic trends and implications for planning and budgeting.
There’s no gainsaying that Bagudu has brought his wealth of experience to bear on his job – as evidenced by the recent successes in the macroeconomy.
In the past, one of the problems with economic planning was the lack of coordination between the monetary and fiscal authorities, leading to policy failures.
It can be argued that recent policy successes in the fight against inflation as well as Foreign Exchange stability are a direct outcomes of improved harmony between the monetary and fiscal authorities, midwifed by Bagudu.
Among other things, the economy is currently driven by services sector, compared to the past when oil held sway.
This serves as buffer for the economy in the event of oil volatility in the international market.
The minister took the ministry’s mandate as the guardian of Chapter 2 of the 1999 Constitution, as amended, which outlines the Fundamental Objectives and Directive Principles of State Policies seriously.
He revitalised the legal framework for implementing the chapter, primarily through the National Economic Council.
Although an incorporated member, his ministry provided the secretariat for the council.
Using his experience as a former governor, the minister has found a way to achieve consensus more quickly across broad party lines.
For instance, issues on state policing, which is awaiting final approval, have reached consensus.
Also, the minister had driven the war against crude oil theft; and the implementation of local government financial and political autonomy.
Special Duties Department
Nonetheless, the minister’s unwavering commitment to inclusive governance, institutional strengthening, and improved intergovernmental coordination has fostered the enabling environment in which the Special Duties Department has continued to thrived.
The department undertakes a crucial role in coordinating additional activities beyond the ministry’s core functions.
It serves as the secretariat for the National Economic Council (NEC) and its Ad-Hoc Committees, the Joint Planning Board/National Council on Development Planning (JPB/NCDP), the Community of Practice (CoP), and the Implementation Monitoring Committee (IMC).
Under Bagudu’s watch, the department has continued to play a vital role in promoting economic policy coherence across the three levels of government.
The minister’s foresight, political will, and unwavering support for sub-national capacity-building and evidence-based planning have enabled the department to fulfil its cross-cutting coordination responsibilities with diligence and purpose.
The department has served to complement the ministry as well as spearheaded the effective Coordination of the National Economic Council (NEC) and successfully facilitated and participated in 11 National Economic Council (NEC) meetings, ensuring that deliberations were strategically structured, policy discussions were well-informed, and resolutions were implemented in a timely and effective manner.
These meetings addressed economic matters and advanced the nation’s development agenda, with phenomenal outcomes, featuring stronger bonds and linkages, as well as collaborations that propelled development across the sub-nationals.
Through its activities the special duties department has supported the NEC Ad-Hoc Committees on critical national issues, offerring secretarial and technical coordination to various NEC Ad-Hoc Committees focused on key national priorities.
The department contributed to the development of policy recommendations designed to combat illegal oil activities, increase transparency, and protect government revenue.
It also contributed to the development of the National Electrification Strategy and Implementation Plan, and aided stakeholder coordination and policy development initiatives to enhance electricity access across the country, particularly for underserved rural communities.
The department facilitated discussions and intergovernmental collaboration to enhance national immunisation efforts and expedite the eradication of polio.
It further organised comprehensive training sessions for Commissioners of Budget and Economic Planning across the 36 states, aimed at enhancing technical capacity in economic planning, public budgeting, and evidence-based policy development.
Enhancing Institutional Performance
These achievements highlighted the central role played by the special duties department in bridging federal and state economic governance, enhancing institutional performance, and advancing the country’s development agenda.
The department remains dedicated to fulfilling its mandate under the ongoing strategic guidance and political leadership of Bagudu.
These sessions have significantly contributed to reforms in sub-national economic governance and improved alignment with national development priorities.
Through Bagudu’s leadership, the department has coordinated intergovernmental economic planning via a Community of Practice (CoP), and successfully organised the hosting of three CoP meetings.
A virtual meeting and two onsite meetings were held in Abuja and Umuahia, Abia State, in November 2024 and April 2025, respectively.
The CoP, a forum for Honourable Commissioners of Budget and Planning across the 36 States, provided opportunities for knowledge-sharing, peer learning, and review among sub-national governments.
It is noteworthy that as coordinating ministry, Bagudu through the NEC, CoP, JBP/NCDP, and other high-level meetings, disseminated valuable information to states and federal agencies, thereby bridging gaps by providing linkages and partnerships that promoted effective policy formulation.
The special duties department successfully coordinated the fourth edition of the NEC Implementation Monitoring Committee (IMC) field visits across all six geopolitical zones, in collaboration with relevant stakeholders, as well as produced the 2024 NEC Resolutions Tracking Report, which was duly submitted to the Office of the Vice President (OVP), ensuring proper follow-up on Council decisions.
One of the key challenges to economic planning in the past was the subject of policy inconsistencies by previous administrations.
However, under Bagudu, the federal government has reaffirmed its commitment to policy predictability thereby restoring investor confidence and trust in the economy.
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