PRESIDENT Bola Tinubu, yesterday, presented the N27.5 trillion 2024 Appropriation Bill to a joint session of the Senate and House of Representatives.
He announced his administration’s resolve to adopt the “revised 2024-2026 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, FSP, as parameters for the budget, stressing his government’s plan to grow the economy by a minimum of 3.76 percent, above the world average forecast, next year.
Tagged ‘’Budget of Renewed Hope’’, Tinubu promised that with its passage, the nation’s internal security architecture would be overhauled to enhance law enforcement capabilities, to safeguard lives, property, and investments across the country.
President Tinubu arrived at the Chamber of the House of Representatives at 111.13 am started the presentation at 111.40 am, and ended it at 12.05.
He said the nation’s defense and internal security, local job creation, macro-economic stability, investment environment optimization, human capital development, poverty reduction, and social security were top priorities of the budget and urged the legislators to be guided by the interests of Nigerians while considering the budget proposals.
Tinubu, who assured that the student loan scheme would commence in January 2024, added that the proposed budget prioritizes human capital development, with particular attention given to children because human capital remained the most critical resource for national development.
$77.96 oil benchmark, 1.78mpd production
After reviewing developments in the world oil market and domestic conditions, Tinubu said the government has adopted an oil price benchmark of 77.96 US Dollars per barrel and daily oil production of 1.78 million barrels.
He said the government had also adopted an exchange rate of N750 per US Dollar for 2024, with non-debt recurrent expenditure put at N9.92 trillion, while debt service is projected to be N8.25 trillion and capital expenditure pegged at N8.7 trillion.
The President, who noted that Nigeria remained committed to meeting its debt obligations, said there was a projected debt service of 45% from the expected total revenue, adding that the budget deficit was projected at N9.18 trillion in 2024 or 3.88 percent of Gross Domestic Product, GDP. This is lower than the N13.78 trillion deficit recorded in 2023, representing 6.11 percent of GDP.
Recurrent, capital expenditures
Recurrent expenditure is put at N9.92 trillion, while capital is N8.7 trillion.
According to him, the deficit will be financed by N7.83 trillion in new borrowings; N298.49 billion from privatization proceeds; and N1.05 trillion draw-down on multilateral and bilateral loans secured for specific development projects.
Tinubu said: “Our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the Medium Term Expenditure Framework is Nigeria’s commitment to a greener future.
To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. In this regard, we will work more closely with development partners and the private sector.
To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024.
We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent in 2024. In preparing the 2024 budget, our primary objective has been to sustain our robust foundation for sustainable economic development.
A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.
Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation, and other sectors.
‘This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources.
By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.
As we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition.
We must seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.
Together, we will strive for Nigeria to emerge from COP28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship.”
He said his administration remained committed to broad-based and shared economic prosperity, adding that “we are reviewing social investment programs to enhance their implementation and effectiveness.
‘In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.”
He urged the lawmakers: “As you consider the 2024 budget estimates, we trust that the legislative review process will be conducted to sustain our desired return to a predictable January-December fiscal year.
‘I do not doubt that you will be guided by the interest of all Nigerians. We must ensure that only projects and programs with equitable benefits are allowed into the 2024 budget.
‘’Additionally, only projects and programs that are in line with the sectoral mandates of MDAs and those which are capable of realizing the vision of our administration should be included in the budget.”
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