President Bola Tinubu has presented the 2024 appropriation bill to the National Assembly, referring to it as the “Budget of Renewed Hope.”
The budget, which was approved by the Federal Executive Council earlier in the week, amounts to N27.5 trillion.
In his address to the National Assembly, President Tinubu outlined key elements of the budget proposal, focusing on priorities and projections for the fiscal year. The following are some highlights from his speech:
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Revenue Generation and Deficit: The federal government aims to generate N18.32 trillion in revenue to fund the budget. The projected budget deficit is N9.18 trillion.
Economic Growth Projection: President Tinubu projected an impressive economic growth of 3.76% for the 2024 fiscal year.
Expenditure Breakdown: Recurrent expenditure – N9.92 trillion
Capital expenditure – N8.7 trillion.
Security Architecture Overhaul: Plans for a comprehensive overhaul of the internal security architecture to strengthen law enforcement capabilities and enhance the protection of lives, property, and investments.
Human Capital Development: Emphasis on human capital development, particularly for school children.
Green Economy and Energy Transition: Commitment to a greener future, with a focus on public-private partnerships for big-ticket infrastructure projects in energy and transportation.
Allocation of resources to support innovative and environmentally conscious initiatives. Promotion of renewable energy sources to position Nigeria as a regional leader in the global movement toward clean and sustainable energy.
Oil Price and Exchange Rate Assumptions: Conservative oil price benchmark of $77.96 per barrel. Daily oil production is estimated at 1.78 million barrels per day. The naira to U.S. Dollar exchange rate is set at N750.
Debt Service and Financing: Debt service is projected to be 45% of the expected total revenue. The projected budget deficit of 3.88% of GDP is lower than the deficit recorded in 2023.
New borrowings of N7.83 trillion, privatization proceeds of N298.49 billion, and a drawdown on multilateral and bilateral loans of N1.05 trillion to finance the deficit.
President Tinubu emphasized the government’s commitment to meeting debt obligations and highlighted efforts to reduce the budget deficit compared to the previous year. The budget proposal is expected to reflect priorities in economic growth, security, human capital development, and environmental sustainability.
Read his budget statement below:
“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, the President said.”
He added, “Accordingly, an aggregate expenditure of 27.5 trillion nairas is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion nairas while debt service is projected to be 8.25 trillion nairas and capital expenditure is 8.7 trillion nairas. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.
“The budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023, which represented 6.11 percent of GDP. The deficit will be financed by new borrowings totaling 7.83 trillion naira, 298.49 billion naira from privatization proceeds, and 1.05 trillion naira drawn down on multilateral and bilateral loans secured for specific development projects.”