Atiku Bagudu, Nigeria’s Minister of Budget and Economic Planning, has defended the decision to set a foreign exchange benchmark of N800 to a dollar for the 2024 budget. In an exclusive interview in Abuja, Bagudu emphasized that this deliberate choice was strategic, underlining the government’s thoughtful consideration of global market dynamics.
Bagudu explained that it would be imprudent to base budget projections on the volatile spot rate, especially considering the unpredictable nature of global events affecting market prices. Instead, he stressed the importance of observing average performance over a period to arrive at a more reliable exchange rate. The National Assembly subsequently adjusted the foreign exchange benchmark to N800 to the dollar, aligning with the government’s strategic approach.
The minister expressed confidence in the government’s measures to bolster the supply of foreign exchange in the country’s economy. He also addressed concerns about borrowing, highlighting a significant decrease in borrowing relative to the previous year. Bagudu emphasized adherence to the fiscal responsibility law and articulated the government’s commitment to operate within its legal borrowing limits.
Looking ahead, Bagudu outlined the 2024 budget’s revenue projections, aiming to facilitate an enabling environment for both local and foreign investment. He underscored the government’s focus on key areas such as security, education, works, and housing to foster economic development and job creation for Nigerians. Moreover, he highlighted ongoing initiatives and reforms aimed at enhancing revenue generation and expressed optimism about the achievability of the revenue projections.
In conclusion, Atiku Bagudu exuded confidence in the fiscal discipline and efficiency measures being implemented, projecting a potential reduction in the need for additional borrowing. His remarks paint a picture of a strategic and deliberate approach to budgeting, emphasizing the government’s commitment to responsible fiscal management while prioritizing sustainable economic growth for Nigeria.
