President Bola Ahmed Tinubu in a Joint Session of the Senate and House of Representatives on Wednesday, 29 November 2023, presented the sum of N27.5 trillion as the proposed 2024 Budget. The President, in his address to the National Assembly described the 2024 Budget as the “Budget of Renewed Hope” which is designed to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.
In preparing the 2024 Budget, President Tinubu informed lawmakers that the primary objective of his administration is to sustain a robust foundation for economic development, leverage on public-private partnership, and to foster development of renewable energy sources.
Speaking on the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), and its fiscal parameters, President Tinubu explained that his administration adopted an oil price benchmark of $77.96 per barrel, daily oil production estimate of 1.78 million barrels per day and an exchange rate of N750 to $1 for 2024.
In addition, President Tinubu mentioned that the total expenditure of N27.5 trillion proposed by the Federal Government in 2024 comprises of the following:
- Non-debt recurrent expenditure of N9.92 trillion
- Debt Service N8.25 trillion
- Capital Expenditure N8.7 trillion
- Debt service 45% of the expected total revenue
- Budget deficit N9.18 trillion or 3.88% of GDP
- New borrowings N7.83 trillion of which N298.49 billion will be derived from Privatization Proceeds and N1.05 trillion will be derived from drawdown on multilateral and bilateral loans secured for specific development projects.
Furthermore, President Tinubu stated that his administration is currently reviewing existing tax and fiscal policies with the aim of increasing the ratio of revenue GDP from less than 10 percent to 18 percent with efforts made to further contain financial leakages. He also mentioned that the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.
In conclusion, President Tinubu commended the collaborative efforts of the 10th National Assembly stating that decisions of the legislature should be guided by the interest of all Nigerians, and they must work to ensure that only projects and programs with equitable benefits are captured in the 2024 Budget.
At the end of the budget presentation ceremony, the Senate and House of Representatives at a joint sitting passed a resolution urging all Standing Committees to conduct its budget defence exercise in a joint session to allow for timely consideration and a more comprehensive deliberation. Both Chambers also agreed that debates on the 2024 Budget proposal will commence on Thursday, 30 November and conclude on Friday, 1st December 2023.
Click here to view the President’s 2024 Budget Presentation Address
