In a momentous event set to mark a new chapter in Nigeria’s fiscal trajectory, President Bola Tinubu is poised to present the 2024 budget estimates of a staggering N27.5 trillion to a joint session of the National Assembly (NASS) today, making this his inaugural budget presentation before lawmakers since assuming office on May 29, 2023.
The anticipation surrounding this historic budget presentation reached a crescendo as the upper chamber, on Tuesday, granted the President’s request to address a joint session of the Senate and the House of Representatives.
NASS’ Secretary of Research and Information, Ali Umoru, had previously announced the President’s scheduled address in a letter dated November 27, 2023.
Three weeks ago, President Tinubu forwarded the 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper to both chambers of the National Assembly, proposing a total expenditure profile of N26.1 trillion for the 2024 fiscal year.
However, in a significant development on Monday, the budget underwent a revision, increasing by N1.5 trillion to reach the substantial sum of N27.5 trillion.
Addressing reporters at the State House, Minister of Budget and Economic Planning, Abubakar Bagudu, unveiled the factors behind the upward revision.
The Federal Executive Council (FEC) approved the use of an exchange rate of N750 to $1 and a benchmark crude oil reference price of $77.96 per barrel in the revised MTEF and Fiscal Policy.
Consequently, the FEC also greenlit an Appropriation Bill for 2024, featuring an aggregate expenditure of N27.5 trillion, representing an increase of over N1.5 trillion from the initial estimate.
This ambitious budget of N27.5 trillion stands as a remarkable 26% surge compared to the 2023 budget presented by former President Muhammadu Buhari in 2022, underscoring the administration’s commitment to robust economic growth and development.
In tandem with the budget presentation, President Tinubu has sought the approval of NASS for an external borrowing plan totaling $8.6 billion and €100 million.
The funds are earmarked for critical infrastructure projects spanning power, roads, water, railway, and health, signaling a strategic move to bolster the nation’s foundational sectors.
As the President unveils this colossal budget and seeks approval for external borrowing to enhance infrastructure, the Nigerian populace and international observers keenly await the implications and transformative potential of this financial roadmap on the nation’s socio-economic landscape.
The coming days will undoubtedly witness rigorous deliberations and scrutiny by lawmakers as they assess the viability and impact of this ambitious budget proposal.
