Minister of Budget and Economic Planning, Abubakar Bagudu has said that the lack of microeconomic reform is responsible for low investment, low revenues in Nigeria, and this is why the economy is shrinking.
Speaking at the ‘Ministerial Sectoral Updates’ in Abuja on Wednesday, May 22, Bagudu said the present administration has initiated a microeconomic reform as part of the renewed hope agenda to address the root causes of low investment and revenues.
He said;
“We embarked as part of the renewed hope agenda on a microeconomic reform because that was what was responsible for low investment, low revenues, and our economy size was shrinking. It was too small compared to our need.
“That is why we are not even producing crude oil in the quantity we used to before or as allowed by international convention, which is our OPEC quarter, because of underinvestment, whether in the physical infrastructure itself or security.
“Food security, despite our potential, we are underinvesting. Most of our farmers are one-season per year farmers. Our infrastructure is not catching up with our dreams. Our educational system, our health system is suffering from underinvestment. In addition to our other sectors, the creative economy, digital economy, and the steel sector.
“The answer to all this is to restore macroeconomic stability that will ensure that investors, both domestic and international, put their faith in our economy once again.”
Bagudu also said that while the exchange rate and inflation are not yet at the desired levels, the government is on the right path to restore the economy.