The Minister of Budget and Economic Planning has shown the ability to fulfil his dual mandate, writes 

It has been two years of significant progress as the Ministry of Budget and Economic Planning, under the leadership of Senator Abubakar Bagudu, has gone beyond its core budgeting functions to fulfil its other key mandate of guiding the nation in formulating policies that stimulate and accelerate inclusive economic growth and development.

Notable policies and programmes that have been implemented include the development of the National Bioeconomy Strategic Framework (NBSF), the National Hydrogen Policy, the Nigeria COVID-19 Action Recovery and Economic Stimulus Programme, the Nigeria Community Action for Resilience and Economic Stimulus (NG-CARES-2) Project 2, and the Cassava Bio-Ethanol Value Chain Project.

After approximately five years of deliberation and preparation, the development of the National Bioeconomy Strategic Framework is notable, as it has received validation from Federal Ministries, Departments, and Agencies (MDAs) and sub-national governments. However, it is still pending approval from the Federal Executive Council (FEC).

The framework encompasses the production, utilisation, and conservation of biological resources to promote sustainable economic growth. This approach emphasises developing, manufacturing, utilising, and exporting bio-based solutions to bolster the Nigerian economy and support a transition towards a low-carbon future.

The framework aims to utilise Nigeria’s bioresources to enhance primary production and leverage biological resources across sectors such as agriculture, forestry, and fisheries, promoting economic growth and fostering sustainable development. It will also address critical issues, including food security, energy, the environment, health, and innovation, to alleviate poverty and achieve sustainable growth.

The effective coordination and implementation of the framework is expected to be a game-changer and profoundly impact Nigeria’s economy. It promises to enhance economic diversification by reducing dependence on fossil fuels and promoting sustainable growth. It will affect job creation by generating employment opportunities in the bioeconomy sector. It will help sustain the environment by encouraging sustainable development and reducing greenhouse gas emissions. Ultimately, the framework will bolster food security by increasing food availability and alleviating poverty.

Bagudu exhibited a remarkable enthusiasm for a green economy, advocating for the establishment of a Nigerian Hydrogen Policy. This policy represents a landmark initiative that highlights the country’s dedication to diversifying its energy mix and supplying cleaner energy for industrialisation, transportation, power generation, and clean cooking, thereby fostering sustainable economic growth and development. 

Under his watch, the ministry, in collaboration with relevant stakeholders, developed a Zero Draft Policy that leverages the nation’s strengths in both green and blue hydrogen production. This policy harnesses Nigeria’s abundant renewable resources, including solar and wind power, to produce green hydrogen through electrolysis. It also encourages the utilisation of Nigeria’s natural gas reserves to produce blue hydrogen, utilising carbon capture and storage (CCS) technology to minimise emissions.

The policy aims to decarbonise the country by reducing greenhouse gas emissions while promoting energy security and economic development. It seeks to advance sustainable energy through the development and utilisation of hydrogen as a clean and renewable energy source, reducing reliance on fossil fuels and encouraging energy diversification. Additionally, the policy intends to support research and development in hydrogen technologies, stimulate innovation and entrepreneurship, and create jobs by generating employment opportunities in the hydrogen sector. 

Upon its full implementation, rapid decarbonization and a reduction in greenhouse gas emissions are expected to occur as Nigeria transitions to a low-carbon economy. In this way, the country will make a significant contribution to global efforts to mitigate climate change. Additional benefits of implementing the policy include enhanced energy security, new economic opportunities, and sustainable development.

The Nigeria COVID-19 Action Recovery and Economic Stimulus Programme is a multi-sectoral initiative designed to provide immediate emergency relief to vulnerable and impoverished Nigerians, smallholder farmers, and SMEs adversely affected by the COVID-19 pandemic, supported by a $750 million credit facility from the World Bank.

The programme is executed by the states and the Federal Capital Territory (FCT), using the Programme for Results (PforR) instrument across three Results Areas, which include 11 Disbursement-Linked Indicators (DLIs). At the federal level, the Federal CARES Support Unit (FCSU) offers technical support to the states and the FCT, utilising the Investment Programme Financing (IPF) Instrument of the World Bank.

The Programme has in-built mechanisms to promote the achievement of results and transparency in operations. These structures include the Independent Verification Agency (IVA),Third Party Monitors (TPM), Federal Monitoring Teams, Federal CARES Steering Committee (FCSC), Federal CARES Technical Committee (FCTC), and Federal CARES Support Unit (FCSU), as well astheWorld Bank Implementation Support Team.

The programme has been impactful. Its interventionhas reached approximately 15 million Nigerians as of September 2024. The ministry is compiling its fourth quarter report and will share the update soon. The fourth and final round of the IVA is ongoing, and the draft report is being prepared. However, after three rounds of assessment and reimbursement, a cumulative earned result amounting to $834,597,246.25 has been generated by the states and the FCT. Actual reimbursement, however, stands at $645,742,514.60, which is about 30% above the total credit disbursed to the 36 states and the FCT under the PfoR. 

Meanwhile, the 14 third-party monitors engaged have successfully conducted two rounds of their monitoring exercises. The draft report of the second round is currently under review. Lastly, the peer learning and experience sharing in seven locations across the country, supported by the Nigeria Governors’ Forum, has been completed. The report is being reviewed and will be disseminated to promote knowledge and experience sharing in programme management.

Following the successful implementation of Nigeria’s Community Action for Resilience and Economic Stimulus (NG-CARES), the FMBEP, under the capable leadership of Bagudu, has secured a second NG-CARES Project worth $500 million as an economic stimulus for communities and businesses. The Ministry is leading the design of NG-CARES 2.0. The World Bank has scheduled a final meeting with stakeholders in Abuja. 

The Bioethanol Project aims to produce bioethanol fuel from cassava for use in transportation, both locally and internationally. Nigeria is the world’s largest producer of cassava, with 62 million metric tons, accounting for approximately 25% of global production. However, 90% of this is consumed, leaving very little for industrial feedstock. Our nation’s comparative advantage in cassava production significantly enhances food security and nutrition, promotes inclusive economic growth, diversifies the economy, encourages industrialisation, increases employment, boosts exports, and aids poverty reduction. The choice of bioethanol not only extends the cassava value chain but also helps to reduce our carbon footprint and mitigate environmental degradation.

The Bio-ethanol initiative aims to alleviate poverty, as outlined in the National Development Plan (2021-2025) and the National Poverty Reduction Strategy; diversify the Nigerian economy away from dependency on fossil fuels while creating alternative sources of income; establish a more environmentally friendly atmosphere by gradually reducing carbon emissions; and generate employment opportunities through Bio-Entrepreneurs. 

Significant milestones have been achieved. Contracts have been awarded for Cassava Seed Multiplication to address both local and international industry demands and ensure food security. Additionally, contracts have been awarded for the Modular Cassava Bioethanol Refinery to position Nigeria as a major bioethanol producer. Furthermore, contracts for capacity building have been awarded to enhance the skills of farmers, operators, and government staff in the effective implementation of the Cassava Bioethanol Project. 

Senior ministry officials testify that these milestones, which aim to diversify the economy away from oil dominance, would not have been achieved without Bagudu’s distinctive approach. They stated he particularly encouraged stakeholder engagement, insisting that policies cannot fulfil their objectives unless they have the buy-in of those they are intended to serve. Consequently, regular engagement with stakeholders—including farmers, private sector operators, and civil society organisations—has ensured that initiatives are inclusive, responsive to needs, and sustainable.

Adebiyi serves as the special assistant for Media to the Minister of Budget and Economic Planning, Senator Abubakar Bagudu