Mariam Abeeb
Capital flows are driven by a confluence of factors, including growth differentials, interest rate differentials, global risk aversion, trade openness, reserves, institutional quality, and financial development.
Policymakers usually try to balance the benefits of capital inflows with the need to maintain financial stability.
Macroeconomic policy can play an important role in attracting capital inflows. For instance, fiscal discipline promotes greater other investment inflows, and less flexible exchange rate arrangements (more exchange rate stability) foster portfolio investment inflows.
A stable macroeconomic policies helps to promote growth by providing a more secure environment for private sector investment decisions.
Macro economy is premised upon robust economic fundamentals, backed by sound public financial management and fiscal policy frameworks that are resilient to shocks and distortions.
This is attained where there is a strong commitment by fiscal authorities at ensuring prudent management of public resources, while driving economic growth and raising the living standards of the citizens.
Macroeconomic policy aims to provide a stable economic environment that is conducive to fostering strong and sustainable economic growth. The key pillars of macroeconomic policy are fiscal policy, monetary policy and exchange rate policy.
Macroeconomic policy is concerned with the operation of the economy as a whole. In broad terms, the goal of macroeconomic policy is to provide a stable economic environment that is conducive to fostering strong and sustainable economic growth, on which the creation of jobs, wealth and improved living standards depend.
In ensuring a stable macro economic development in Nigeria, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu saw his mission as coordinating the recovery of a dying economy that needed life-saving oxygen to survive and move on the path of the macro-economic stability required for domestic and foreign investment inflow.
Bagudu creating sustainable economic growth through national policy coordination function as implemented a National Poverty Reduction with Growth Strategy, NPRGS, to address Multidimensional Poverty and Job creation in Nigeria was coordinated with the relevant MDAs across 36 States and FCT.
Also , in 2023, the FCT and 34 states were reimbursed N438.3 billion. The programme has a $750 million credit portfolio.
So far, not fewer than 67,038 jobs have been created in the first phase of the 2023 implementation.
Under the leadership of the minister, the Performance Report of Nigeria’s Economy in 2023 was published.
This report offered the opportunity to assess the performance of government policies and programs within the period under review.
As part of efforts in attracting foreign direct investment and addressing infrastructure deficit, Bagudu led administrations implemented Pipeline bankable projects .
The Ministry successfully coordinated the implementation of the NG-CARES programme across the 36 states.
NG-CARES is a World Bank/FGN multi-sectoral programme designed to provide immediate emergency relief to vulnerable and poor Nigerians, smallholder farmers, and Nano, MSMEs that were adversely affected by the COVID-19 pandemic.
In 2024, the NG-CARES Programme transitioned from “Nigeria Covid-19 Action Recovery and Economic Stimulus (NG-CARES) Programme” to “Nigeria Community Action for Resilience and Economic Stimulus,” shifting focus from COVID-19 recovery to building the resilience of the poor and vulnerable,especially entrepreneurs.
The interventions of the NG-CARES programmes in 35 states plus FCT have impacted 7 million poor and vulnerable households.
In boosting food and nutrition security in the country, the Ministry under Bagudu coordination, coordinated the inaugural meeting of the National Council on Nutrition (NCN), chaired by the Vice President.
The outcome of the meeting was presented to all the Governors at the NEC meeting, which eventually led to the constitution of the National Core Working Committee on Nutrition, housed in the Office of the President.
Similarly, the ministry collaborated with the House of Representatives Committee on Nutrition and Food Security to secure the concurrence of the Speakers of the 36 State Houses of Assembly to establish the State House of Assembly Committee on Nutrition and Food Security in all states.
Effective coordination of the United Nations Food Systems Transformation Pathways implementation in the 36 States.
All the Commissioners of Agriculture, Health, and Economic Planning agreed to implement it based on their state’s comparative advantage.
As the Secretariat of NCN, the Ministry coordinated the dialogue and engagement of Faith-Based Leaders to accelerate the achievement of Nutrition in Nigeria.
The Dialogue was also a platform to launch Christian and Muslim Perspectives of Key Messages on Maternal, Infant and Young Child Nutrition (MICYN).
The Ministry ensured the Institutionalization of Nutrition Budget Tagging Systems in pilot MDAs as one of the outcomes of the World Bank ANRiN project.
Furthermore , to foster efficient utilisation of public resources and ensure that no citizen is left behind, the Federal Ministry of Budget and Economic Planning has been advocating for mainstreaming the use of geospatial evidence and insights from Geospatial analysis for the design and implementation of public programmes and projects in Nigeria.
The key strategies employed by the Ministry to achieve the mainstreaming of the use of geospatial evidence and insights in the public sector include sensitizing governments at the subnational level and government agencies at the national level.
In collaboration with the ICRC, the Ministry successfully concessioned the Cassava bio-ethanol value chain in the six (6) geographical zones. The ongoing pilot projects have created over 8,000 direct and indirect jobs.
The project’s objectives are to boost cassava production,develop the value chain to address food insecurity, and create employment through entrepreneurship along the cassava value chain.
The revised National Social Protection Policy, coordinated by the Ministry, is ready for launch. All 36 Governors at the NEC meeting agreed that the President should launch the policy as a guide for managing theSocial Protection program in Nigeria.
Inaugurated Community of Practice of Stakeholder MDAs on implementation of the National Social Protection Policy.
Timely release of monthly inflation figures to guide policy decision-making. In addition, the release of quarterly GDP numbers and other indicators are consistent with the timeframe.
The ministry also ensures that the National Bureau of Statistics is independent.
When completed, this will boost the country’s GDP and strengthen its prime position as the largest economy in Africa.
In preventing economy sabotage and crude oil theft, the Ministry developed the Action Plan in boosting oil production.
