2024 Budget: FG projects N9trn budget deficit, 21.4% inflation rate
…PDP Condemns Rendition Of Tinubu’s Campaign Tune In NASS Chamber
…We’ll diligently scrutinise 2024 budget proposal – Tajudeen Abbas
.. the budget targets macro economic stability, investments, jobs creation
President Bola Tinubu on Wednesday presented the 2024 budget estimate of N27.5 trillion with strong focus on defence, internal security, local job creation.
The budget will also tackle macro-economic stability, investment environment optimization, human capital development, poverty reduction, and social security under the Renewed Hope agenda.
Total budget N27.5 trillion, debt servicing at N8.25t/45%
Providing a breakdown of the 2024 Appropriation Bill, the President revealed that an aggregate expenditure of 27.5 trillion naira is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion naira while debt service is projected to be 8.25 trillion naira and capital expenditure is 8.7 trillion naira. 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 draw down on multilateral and bilateral loans secured for specific development projects.”
The President who was appearing at a joint session of the National Assembly on the 2024 Federal budget proposal on Wednesday in Abuja, for the first time said the nation’s internal security architecture will be overhauled to enhance law enforcement capabilities with a view to safeguarding lives, property, and investments across the country.
He said the proposed budget prioritizes human capital development, with particular attention given to children, because human capital remains the most critical resource for national development.
“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,” the President affirmed.
Speaking on the economy, President Tinubu said a stable macro-economic environment is crucial in his administration’s bid to catalyze private investment and accelerate economic growth; hence, his government shall continue to implement business and investment friendly measures for sustainable growth.
“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. It is imperative that we 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.
Crude oil benchmark of 77.96 U.S. Dollars per barrel, exchange rate of N750/$1
The President said a conservative oil price benchmark of 77.96 U.S. Dollars per barrel and a daily oil production estimate of 1.78 million barrels per day were adopted after a careful review of global oil market trends, and that a Naira to U.S. Dollar exchange rate of 750 naira per U.S. Dollar was adopted for 2024 as well.
President Tinubu said his administration remains committed to broad-based and shared economic prosperity, adding: “We are reviewing social investment programmes 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 also said efforts will be made to further contain financial leakages through the effective implementation of key public financial management reforms.
The President commended the patriotic resolve of the 10th National Assembly to collaborate with the Executive on the mission to renew the hope of Nigerians and deliver on the promises made to Africa’s largest population.
He disclosed that his administration will focus on increased valued returns for all public expenditure.
“As you consider the 2024 Budget estimates, we trust that the legislative review process will be conducted with a view to sustaining our desired return to a predictable January-December fiscal year. I have no 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,” the President declared.
Speaking on the 2023 budget, the President said N8.65t revenue was received under the 2023 budget.
Projects N9trn budget deficit, 21.4% inflation rate
The federal government has pegged Nigeria’s budget deficit for the 2024 fiscal year at N9.18 trillion.
Speaking on Wednesday during the presentation of the proposed N27 trillion 2024 budget at the national assembly, President Bola Tinubu said the deficit represents 3.88 percent of Nigeria’s gross domestic product (GDP).
The president said the N9.18 trillion deficit is lower than the “N13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP”.
“The deficit will be financed by new borrowings totalling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects,” he said.
Tinubu said the government also projected that inflation will moderate to 21.4 percent in 2024, noting that the country is currently reviewing its tax and fiscal policies.
“Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this administration,” he said.
The president said the country is also exploring public-private partnership arrangements to finance critical infrastructure.
He, therefore, invited the private sector to partner “with us to ensure that our fiscal, trade and monetary policies, as well as our developmental programs and projects succeed in unlocking the latent potential of our people and other natural endowments, in line with our national aspirations”.
“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,” he said.
“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.”
In addition, Tinubu promised that efforts would be made to further contain financial leakages through the effective implementation of key public financial management reforms.
He said the top priorities of the ‘2024 Budget of Renewed Hope’, include national defence and internal security, local job creation and macroeconomic stability.
The president also said the proposed budget prioritises human capital development, with particular attention given to children “because human capital remains the most critical resource for national development”.
Tajudeen Abbas: We’ll diligently scrutinise 2024 budget proposal
Meanwhile, Tajudeen Abbas, speaker of the house of representatives, says the proposed 2024 budget will be “diligently scrutinised” by the parliament.
Speaking on Wednesday when President Bola Tinubu presented the N27 trillion proposed 2024 budget to the national assembly, Abbas said the appropriation bill would be “thoroughly” examined.
The speaker said while the lawmakers would give the budget an “accelerated consideration”, they would ensure that each ministerial component meets the needs of Nigerians.
“We will give this bill the utmost priority it deserves,” Abbas said.
“While we would give it accelerated consideration, we will diligently scrutinise it alongside Nigerians to ensure that when it is passed, it will be a budget that best addresses the most critical needs of our people.
“We shall thoroughly examine various aspects of the budget proposals, including economic feasibility, allocation and utilisation of funds and sustainability of proposed fiscal policies.
“This is essential for maintaining checks and balances, and ensuring that government spending aligns with national priorities and is conducted transparently and efficiently.”
Abbas sought the cooperation of the heads of ministries, departments and agencies (MDAs), especially, during the budget defence by committees.
He asked all stakeholders to attend the national summit that would be convened for the budget with a “sense of purpose and commitment to national development”.
The speaker said the next couple of weeks would be “tough and demanding” for the lawmakers as they would be busy carrying out legislative work on the budget.
“We must ensure that the budget when finally passed, meets the expectations of the people we represent,” he said.
“We must equally follow through the implementation process through our various oversight engagements.”
He said due to the challenge of a high level of public debt, the national assembly would ensure that the 2024 budget includes concrete strategies for sustainable debt management, including measures to increase revenue and control expenditure.
“Specifically, the focus should be on raising more revenue through tax reform, fiscal reform, subsidy reform, foreign exchange convergence, and centralised revenue collection,” he said.
2024 Budget: PDP Condemns Rendition Of Tinubu’s Campaign Tune In NASS Chamber
In another development, the Peoples Democratic Party (PDP) on Wednesday condemned the rendition of President Bola Ahmed Tinubu’s campaign tune at the hallowed chamber of the National Assembly during the presentation of the 2024 budget.
During President Tinubu’s presentation of the appropriation bill earlier in the day to the joint session of the National Assembly, the lawmakers stood up as a symbol of respect, but the band was heard playing Tinubu’s campaign song from when he was a presidential candidate of the All Progressives Congress (APC).
Reacting in a statement on Wednesday, the opposition party described the incident as an “extremely sacrilegious and unpardonable assault by President Tinubu and his handlers on the sensibility and Constitutional sovereignty of the Nigerian people as represented by the National Assembly.”
It noted that the National Assembly is “the symbol of the collective sovereignty of the Nigerian people which cannot be appropriated by or surrendered to any individual or cabal under any guise or circumstance whatsoever.”
See the full statement below:
Press Statement
Budget: PDP Condemns Rendition of Tinubu’s Campaign Tune in National Assembly Chamber
…Says It’s Another Evidence of Drift to Totalitarianism
The Peoples Democratic Party (PDP) @OfficialPDPNig strongly condemns the rendition of the campaign tune of then Presidential Candidate of the APC, @OfficialAPCNg now President Bola Tinubu @officialABAT in the hallowed chamber of the National Assembly during the presentation of the 2024 budget estimate to the Legislature.
The PDP describes such as extremely sacrilegious and unpardonable assault by President Tinubu and his handlers on the sensibility and Constitutional sovereignty of the Nigerian people as represented by the National Assembly.
The insensitive and brazen rendition of Tinubu’s campaign tune amidst proceedings in the chambers of the National Assembly by government’s security band further confirms the apprehensions by Nigerians of creeping totalitarianism and fiefdom where an individual is being elevated as a Sovereign in clear undermining of the Legislature and the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
This condemnable episode validates the concerns of the PDP as expressed on several occasions, the latest being on Wednesday, November 15, 2023 where our Party raised alarm and cautioned that our nation is dangerously sliding into cronyism and totalitarianism under the Tinubu-led APC administration.
The National Assembly is the symbol of the collective sovereignty of the Nigerian people which cannot be appropriated by or surrendered to any individual or cabal under any guise or circumstance whatsoever.
Moreover, the PDP is appalled by President Tinubu’s description of Nigerians in his budget presentation as the “ordinary people out there”; a statement which further exposes the disdain and utter disregard to the sensitivity of Nigerians as reflected in the formulation of polices, programmes and implementation by the APC administration
This apparently explains why the 2024 budget as presented by President Tinubu heavily provided for luxury appetite of the privileged few in the Presidency and APC leaders with no corresponding positive plan for the wellbeing of other Nigerians.
Our Party calls on Nigerians to be at alert and defend the nation’s democracy by resisting the totalitarian tendencies of the APC administration.
Nigeria is a democratic nation governed by the Constitution and the Rule of Law and we must not allow any act that is capable of drifting our nation to unconstitutional tendencies as being exhibited by the APC.
Signed:
Hon. Debo Ologunagba
National Publicity Secretary
