Nigeria's Bagudu attributes cost-of-living crisis to reforms and global pressures

Nigeria’s Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, has attributed the nation’s rising cost-of-living crisis to a combination of domestic economic reforms and unforeseen global economic turbulence. Speaking at the Federal Appointees Strategic Summit, Bagudu noted that the administration’s decisions to remove fuel subsidies and reform the foreign exchange market were implemented amidst significant economic headwinds.

Bagudu emphasized that while these reforms and external pressures have increased living costs, they are intended to foster long-term stability and inclusive growth. He highlighted that the reforms have strengthened the fiscal capacity of federal, state, and local governments. This aligns with President Bola Tinubu’s policy of fiscal federalism, which aims to redistribute more revenue to sub-national governments to allow for greater investment in infrastructure, education, and security.

The Minister also noted that the federal government has taken steps to settle outstanding financial obligations to states, improving their ability to deliver public services and pay salaries, a challenge that persisted even during periods of high oil prices.