FG eyes fresh $100bn investments to tackle economic crisis

• Published On: 23 August 2024 at 09:11

Atiku Bagudu, the Minister of Budget and Economic Planning, announced on Wednesday that the Federal Government intends to invest $100 billion per year to address Nigeria's economic problems.

According to The Punch, Bagudu stated that the recent nationwide protest against bad governance in Nigeria has forced government officials to listen more and perform better.

He stated that the current administration is committed to righting wrongs and developing the country over the next 25 years, despite the fact that years of underinvestment have resulted in the current economic situation.

This came as the President's Chief of Staff, Femi Gbajabiamila, stated that the country was facing a number of socioeconomic challenges that posed a threat to the existence of the national union.

On Wednesday, the two government representatives spoke at the Nigerian Economic Summit Group's National Economic Dialogue 2024 in Abuja.

The event, themed "Nigeria's Economic Future: 25 Years of Democracy and Beyond," brought together leaders, policymakers, experts, and key stakeholders to reflect on the country's economic journey since its return to democratic rule in 1999.

According to Bagudu, the Federal Government of Nigeria intends to invest $100 billion per year to strengthen the country's economy.

"We want a nation that includes everyone. We aim to increase per capita income by 2050. We want to ensure that we invest at least $100 billion per year. However, if our experience over the last 25 years is any indication, we know how difficult it can be to make both pleasant and unpleasant choices in order to mobilise capital, both private and borrowed, to support our aspirations. We require additional public resources to fund our priorities.

"So, even in a constitutional democracy with separate tiers, our constitution and planning process require at least some cooperation between the levels of government and the private sector.

"Oil subsidies, for example, have been in place for decades. And it has harmed us, even when oil prices rose to $147 during our national life. The net effect on the federation's revenue, or the availability of investment money to support, was nearly zero because the higher the oil prices, the more the then-President Jonathan's government spent on subsidies.

"So, we've been living a lie. So, as unpleasant as it is, President Bola Tinubu said, "Let us begin to tell ourselves the truth: we are not as wealthy as we believe." It is not a shame. Countries that did that thinking and established that truth much earlier than us have made decisions that have gotten them where they want to go."

The minister also talked about the root causes of the country's slowing growth and the need for more public funding to meet the country's priorities.

He stated, "President Tinubu has been very reluctant to reflect on the past and blame anyone, but the net effect is that despite previous administrations' efforts, particularly over the last 25 years, we are not where we want to be.

"So, what should we do? It is not due to anyone's failure, but it is our reality. We have yet to achieve the required income per capita, and it is not due to a lack of effort, but rather a lack of success.

"Our population has nearly doubled from 119 million in 1999 to approximately 230 million today. Still, our oil production, which was 2.2 million barrels in 1999, is now closer to four million, owing to the doubling of our population, which is still less than 1.5 million, reflecting cumulative years of underinvestment in the industry. So, in reality, we are not where we want to be."

Gbajiabiamila, the President's Chief of Staff, expressed a desire for closer collaboration with the government in his remarks.

He stated, "At the moment, we are besieged on all sides by various socioeconomic challenges that endanger the very existence of our national union. However, it is also a time of great opportunity, when we can choose to answer the unanswered questions of our nationhood, allowing our people to thrive here at home in ways never seen before."