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The 2001 Most Child-Friendly Phillippine LGUs with Her Excellency President Gloria Macapagal-Arroyo Public service is a privilege granted to a few. "Many are called, but few are chosen." Realizing the rare opportunity to be of real value to our country and our people, the Tuguegarao City Government is taking serious efforts to become the Premier Ibanag City, the Center of Excellence in Education, Commerce and Culture in Northeast Philippines. It means hard work. It means taking concrete steps to make the city livable, competitive, bankable and well-managed. For its efforts, Tuguegarao City transformed from a sleepy, dusty town in Northeast Philippines into a bustling metropolis, serving not only the needs of the city, but also those of the neighboring towns of Cagayan, Isabela, Kalinga and Apayao. In 2000 and 2001, the city gained national recognition as the Most Child-Friendly Component City of the Philippines. Converted into a  component city of the Province of Cagayan on December 18, 1999, Tuguegarao City was pronounced the Regional Outstanding City for the Year (ROCY) for CY 2000 and 2001 and National Kabalikat Awardee.

Primarily designated as service center for government, education and religion, Tuguegarao City also serves as the show window for commerce and finance, economic transformation information technology, livelihood development, infrastructure and architecture, agricultural modernization, research and development, culture and fashion, leisure and entertainment and total human development.

As the capital of the Province of Cagayan and the Regional Government Center, Tuguegarao City is the hub of socio-economic growth in Region 02. As such, the city is also a backbone support to the Regional Agro-Industrial Center in Isabela and the Cagayan Special Economic Zone and Free Port (CSEZFP) in Santa Ana, Cagayan.