Abubakar Bagudu, the Minister of Budget and National Planning, says Saudi Arabia is willing to stand by President Bola Tinubu for taking “unusual” risks in tackling Nigeria’s economic woes, pointing out that VAT in the Middle East nation is 15 per cent.
The minister said this while briefing State House correspondents after a meeting with the president in Lagos on Sunday.
Nigeria’s VAT was recently increased from five per cent to 7.5 per cent.
Mr Bagudu said the Saudis saw in Tinubu somebody who was changing his country, just like they had transformed their own country. He said Mohammed bin Salman Al Saud, the Saudi Crown Prince, was faced with a people who believed they were wealthy and felt entitled.
“He came as a leader and he said, well, you might be rich, you might be entitled, but our economy is not passing the right direction. So, he introduced reform measures, which were unusual then in Saudi Arabia: removal of oil subsidies and introduction of VAT legislation, among others.
“I have a receipt here; when I ate food, I noticed that the VAT was 15 per cent. But today, Saudi Arabia is turning into a wonderland, an amazement in investment; money is flowing,” said Mr Bagudu.
According to him, the Saudis appreciate Mr Tinubu’s harsh economic reforms.
“You can see clear confirmation that they want to stand by this leader because he has taken risks that are unusual and they celebrate his courage and capacity.
“For me, that is the number one achievement for our country. The relationship will blossom such that our reserves and our economic ties will improve with the kingdom,” Mr Bagudu explained.
Mr Bagudu said he was confident that more investments would follow the engagements of the Nigerian delegation to Saudi Arabia.
On the prospects of the economy in 2025, the minister stated, “I think we have made the tough choices. We have seen the worst we could see, and it is not unexpected.
“So, what we expect to see in 2025 is a better economy, lower inflation, more employment opportunities, more support for businesses, more infrastructure development.
“We also expect more funding for security and better security, and all those priority areas: human capital development, education, health. We’re sure to see more in that direction, and the quality of life will get better.”
(NAN)
