In a bid to bolster the 2024 budget, Nigeria’s Minister of Finance and Coordinating Minister of Economy, Wale Edun, has indicated that the Federal Government may seek additional appropriations from the National Assembly if the country experiences robust revenue performance next year.

Edun made this announcement on Monday, during his appearance before the Senate Committee on Finance to defend his ministry’s budget.

The minister, who also disclosed that the 2023 supplementary budget would be executed concurrently with the 2024 budget, outlined the government’s strategy, stating that savings would be utilized to enhance the availability of funds for the 2024 budget. He said the budget would be increased to reflect the government’s commitment to addressing economic needs and priorities.

The Senate Committee urged the finance minister to eliminate bottlenecks causing delays in budget implementation once passed. Chairman Sani Musa expressed concerns over the sluggish progress in executing the 2023 supplementary budget.

President Bola Tinubu presented the 2024 budget estimates of N27.5 trillion to the National Assembly on November 29, 2023. The budget breakdown included recurrent non-debt expenditure at N9.92 trillion, capital expenditure at N8.73 trillion, debt service at N8.25 trillion, revenue at N18.32 trillion, new borrowings at N7.83 trillion, and a deficit at N9.18 trillion.

The President projected economic growth at 3.76%, with an expected moderation of inflation to 21.4% in 2024.

Edun emphasized the importance of fiscal policy review and tax reforms to augment revenue generation. He assured that the government is not trying to increase, or introduce new taxes but enact reforms that will boost tax revenues.

He stressed that these measures would not only fortify the nation’s economy but also attract domestic and foreign direct investments, fostering job creation and wealth generation.

This development is coming amid growing criticism of the 2024 budget dubbed ‘Budget of Renewed Hope’ by experts, who believe it lacks the wits to address Nigeria’s current economic challenges.

Last week, Ben Akabueze, the Director-General of the Budget Office of the Federation, said that the proposed N27.5 trillion budget for 2024, awaiting approval in the National Assembly, is “too small” to adequately address Nigeria’s economic needs.

“I’m always first to acknowledge that the budget of the Federal Government of Nigeria is way too small relative to our needs and our requirements but it is now a case of cutting out coats according to our cloth rather than our size,” noted Akabueze.

Besides this concern, prominent Nigerians have expressed worry over the features of the budget, with some calling it extravagant. Peter Obi, the Labour Party presidential candidate in the last general election, said the priorities outlined in the budget fail to tackle the most pressing need of Nigerians, citing significant allocation for trips and renovations.

Obi urged a comprehensive review and revision of the budget to align with the urgent needs of the country.

BudgIT Foundation, a prominent civic-tech organization advocating for transparency, accountability, and efficient service delivery in Nigeria, has voiced apprehensions regarding the 2024 budget proposed by President Bola Tinubu and presented to the National Assembly for approval.

The organization said it identified what it deems as alarming issues and discrepancies within the 2024 budget, prompting a call for a thorough review of its contents.

“Unfortunately, having reviewed the proposed 2024 Appropriation Bill breakdown, we observed that the Bola Ahmed Tinubu administration has continued with some deleterious budget practices from previous regimes that have fostered corruption, underdevelopment, unemployment, and multidimensional poverty,” the foundation said.

The budget assumptions and Nigeria’s economic realities

Besides the backdrop of volume and features, the budget is significantly based on economic assumptions that experts fear may not be attained. For instance, the budget’s projections anticipate an average crude oil price of $73.96 per barrel in the global market and Nigeria’s oil production at an average of 1.78 million barrels per day, with an estimated exchange rate of N700/$1.

However, these forecasts contrast starkly with the current realities of underwhelming oil output, the weakening performance of the naira in the forex market, and a persistent upward trend in inflation.

Since 2022, Nigeria has struggled to maintain a daily oil production average of 1.2 million barrels per day. Achieving a significant daily increase of over 500,000 barrels within a year poses a considerable challenge, particularly considering the recent decline in oil production, illegal refining activities, oil theft, and a lack of confidence in the government’s capacity to reverse these detrimental economic trends.

Though there has been an uptick in oil production recently, with about 1.5mbd, the Nigerian National Petroleum Company Limited (NNPCL) said on Tuesday that Nigeria recorded 127 crude oil theft incidents between December 2 and 8, underscoring a possibility of production decline.

Also, the realities are stacking up against the N700/$1 exchange rate projection made in the budget. As of Tuesday, the naira is trading at N864.29/$1 at the official market and N1,210/$1 at the parallel market.

With the government’s efforts to boost dollar liquidity yet to yield the desired results, experts have called for the 2024 budget to be reviewed in line with the nation’s economic realities.

“We call for a comprehensive review that prioritizes broad-based economic growth, reduces inequality, addresses poverty, tackles insecurity, bridges Nigeria’s infrastructure gap, and invests in human capital development,” BudgIT said.

In a pivotal court battle that could redefine the mobile app landscape, Google faced a significant blow as a federal court jury sided with Fortnite maker Epic Games Inc. in an antitrust case, potentially disrupting the mobile app economy and posing a substantial financial challenge for the tech giant.

The jury’s decision, reached after a nearly month long trial in San Francisco, concluded that Google Play had wielded monopoly power through anticompetitive practices. US District Judge James Donato will now determine whether Google must permit alternate payment and app distribution methods outside its exclusive app store.

Epic Games, having previously confronted Apple Inc. in a similar challenge (albeit with less success), sought not monetary damages but a transformation in app store policies.

Google, in response to the verdict, expressed intentions to contest the ruling.

Wilson White, Google’s vice president of Government Affairs & Public Policy, defended the company’s stance, stating, “Android and Google Play provide more choice and openness than any other major mobile platform.” He emphasized Google’s competition with Apple and other app stores on various platforms.

Tim Sweeney, CEO of Epic Games, reacted positively to the ruling, signaling the company’s intent to seek tangible alterations in Google’s app store policies. However, Sweeney refrained from divulging specific remedies, highlighting the need for substantial changes despite the court’s decision favoring Epic.

Legal experts and analysts anticipate significant ramifications following this verdict, anticipating potential alterations not just for Epic but for the broader internet ecosystem. Stanford University law professor Mark Lemley emphasized the case’s potential to disrupt the trend toward closed internet environments, potentially impacting market concentration.

He said the verdict “has the potential to be a very big deal — not just for Epic, which will get the ability to sell directly on Android phones — but for the entire internet.”

“The last two decades have seen a profound shift away from the open internet towards walled gardens,” he said. “That is one of the things that have kept the internet market so concentrated. This verdict just knocked a big hole in the garden wall.”

Paul Swanson, a technology and antitrust law specialist at Holland & Hart, suggested that Google might find it challenging to reverse such a sweeping verdict through post-trial procedures or appeals, indicating the substantial impact of the court’s decision.

This ruling arrives amid heightened scrutiny of Google’s business practices, coinciding with a separate antitrust case by the US Justice Department targeting the company’s search business.

Epic’s lawsuit, initiated three years ago, accused Google of monopolizing the Android app distribution market through restrictive agreements and anti-competitive maneuvers. Google defended its partnerships as measures to bolster Android phones against competitors like Apple’s iPhone.

“Epic wants you to give them a deal that they don’t have and they haven’t been able to get anywhere else,” Jonathan Kravis, a lawyer for Google, told the jury in his closing argument. “A deal that would effectively let them use the Play Store for free.”

The trial presented confidential internal communications and documents, offering insights into Google Play’s strategies and dealings with mobile device manufacturers and game developers. Jurors found Google guilty of restraining trade through revenue-sharing agreements and developer policies that hindered competition and limited alternate app distribution methods.

Alphabet had also countersued Epic, alleging contractual breaches and bad faith in Epic’s attempt to establish its own app store. However, the court opted to omit ruling on Google’s counterclaims following Epic’s executives’ admission of seeking alternatives to the Play Store.

The outcome of this trial, designated as ‘In Re Google Play Store Antitrust Litigation,’ has the potential to reshape the app market, pending Judge Donato’s forthcoming decision on remedial actions against Google.

Google has been running its Android app store and Google Play billing system as an “illegal monopoly,”a jury decided Monday in federal court in San Francisco. It’s a “historic victory” for Epic Games, owner of the popular game Fortnite, which filed a lawsuit accusing the tech giant of using “secret revenue sharing deals” to snuff out rival app stores, per The Verge. The implications of the verdict remain unclear, pending a decision on remedies by the judge in the case, and Google parent Alphabet is likely to appeal.

• Epic was not seeking monetary damages, but CEO Tim Sweeney testified that it could save “billions” in fees if users weren’t routed to Google’s billing service.

• The developer has been unsuccessful with a similar suit against Apple.

The Central Bank of Nigeria (CBN) has made a significant policy shift by issuing a directive to all banks and financial institutions, suspending processing charges previously levied on large cash deposits. This directive, effective immediately, affects deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts, halting the previously imposed 2% and 3% processing fees, respectively.

Referenced in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” circular dated December 20, 2019 (FPR/DIR/GEN/CIR/07/042), this suspension will remain in effect until the end of April 2024, aiming to accommodate the evolving financial landscape and address the needs of depositors across Nigeria.

The directive mandates full compliance from all financial institutions regulated by the CBN, explicitly prohibiting the imposition of charges on cash deposits meeting or exceeding these thresholds. This move is anticipated to stimulate more substantial cash deposits, augment liquidity, and potentially have a positive impact on various sectors, including both small and large businesses.

This change in policy contrasts starkly with the 2019 announcement from the CBN to charge customers for cash deposits and withdrawals as a means to reduce cash circulation. The prior policy introduced processing fees of 3% for withdrawals and 2% for deposits exceeding N500,000 for individual accounts, while corporate accounts faced 5% processing fees for withdrawals and 3% for deposits above N3,000,000.

Moreover, just over a year ago, the CBN announced revised cash withdrawal limits, restricting over-the-counter withdrawals by individuals and corporate entities to N100,000 and N500,000, respectively, per week. Withdrawals above these limits incurred processing fees of 5% and 10%, respectively.

This latest suspension of processing charges on large cash deposits is a marked departure from previous policies and aims to ease financial burdens on depositors while fostering a more conducive banking environment. However, it comes at a time when Nigerians are once again struggling to access cash as ATMs across the country remain empty – a situation attributed to the currency swap policy introduced by the central bank late last year.

The controversial currency swap policy, which emanated from the new naira notes redesign, resulted in a nationwide cash scarcity. The central bank had announced a February deadline for the old notes to be phased out. However, the implementation unleashed chaos due to insufficient circulation of the redesigned notes, resulting in a legal showdown between several states, the CBN, and the federal government.

Although in its latest ruling on the matter, the Supreme Court overturned its earlier judgment, which extended the CBN’s deadline to December 31, ruling that both the new and the old naira notes will co-circulate indefinitely – both banks and Nigerians are believed to have become apprehensive. The situation resulted in speculations and possible hoarding of cash by financial institutions. Many banks have currently put a limit on how much customers can withdraw.