Senate Approves Budget After Raising it to N28.7 Trillion for 2024 Fiscal Year
The National Assembly has approved the budget for Nigeria’s 2024 fiscal year, with significant adjustments to the initial proposal. President Bola Tinubu had presented a budget of N27.5 trillion, but the Assembly increased it to N28.7 trillion, marking a notable increase of over N1.2 trillion.
In addition to the overall increase, the Senate adjusted the exchange rate from N750 to N800 per dollar, while maintaining the proposed daily oil production of 1.78 million barrels, an oil benchmark price of US$77.96, and a GDP growth rate of 3.88% as set forth by the executive branch.
The Senate’s decision came following the consideration of the report from the Senate Committee on Appropriation, presented by Chairman Olamilekan Adeola of the All Progressives Congress (APC), representing Ogun West. President Tinubu had initially presented the budget, which he termed the “budget of renewed hope,” on November 29th, 2023.
Notably, the Senate had previously passed the N27.5 trillion 2023 budget for its second reading on December 1st, 2023, after substantial debates on its general principles. Both chambers subsequently suspended plenary to focus on budget defense sessions at the committee level.
President Tinubu’s budget, his first since assuming office, was structured with a non-debt recurrent expenditure of N9.92 trillion, debt service projected at N8.25 trillion, and capital expenditure set at N8.7 trillion.
The breakdown of the approved 2024 budget includes an aggregate of N28,777,404,73,861, statutory transfers amounting to N1,742,786,788,150, debt service of N8,270,960,606,831, recurrent (non-debt) expenditure of N8,768,513,380,852, and capital expenditure of N9,995,143,298,28.
Adeola emphasized the need for the executive to ensure compliance and provide adequate funds to the Ministries, Departments, and Agencies (MDAs). Following his remarks, the Senate dissolved into the Committee of Supply, which considered and passed the budget.
In a related development, the Senate also approved President Tinubu’s request for the securitization of outstanding 7.388 trillion Ways and Means, aiming to reduce debt service costs and extend the repayment period of existing loans. This move is in line with the Ways and Means provision, which allows the government to borrow from the Central Bank in case of short-term or emergency financing needs.
According to the President’s letter to the Senate, the interest rate for the securitized Ways and Means advances has been reduced to 9% per annum, compared to the MPR of +3%.
Source: Vanguard News
