The Federal Executive Council (FEC) convened on Monday and proposed a budget of N26.01 trillion for the fiscal year 2024, to be submitted to the National Assembly. The announcement was made by the Minister of Budget and Planning, Atiku Bagudu, who addressed the media after the Council meeting, which was presided over by President Bola Tinubu.
Key highlights of the proposed 2024 budget include:
Crude Oil Assumptions: The budget is built on the assumption of a crude oil price benchmark of $73.96.
Exchange Rate: An exchange rate of $700 to the Nigerian Naira has been factored into the budget.
Oil Production: The budget estimates oil production at 1.78 million barrels per day.
Economic Projections: The proposed budget includes an inflation rate of 21 percent and anticipates a GDP growth rate of 3.76 percent.
The total estimated expenditure for the 2024 budget amounts to N26.01 trillion, which encompasses various categories, such as statutory transfers of N1.3 trillion, non-debt recurrent expenditure of N10.26 trillion, debt service estimated at N8.25 trillion, and N7.78 trillion allocated for personnel and pension costs.
A notable increase in debt service is attributed to the securitization of N22.7 trillion ways and means, which now constitutes a Federal Government debt at a rate of nine percent. This, in turn, led to an increase in personnel costs due to agreements with labor unions.
Minister Bagudu emphasized the government’s commitment to achieving a January-December budget cycle, and he stated that the executive branch would take concerted efforts to ensure the 2024 budget is passed and signed into law before December 2024. Furthermore, FEC has granted approval for the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP).
The proposed budget and associated economic assumptions mark a pivotal moment for Nigeria’s fiscal planning, with an emphasis on financial transparency and economic growth. The Federal Executive Council’s proposal will now undergo scrutiny and deliberation in the National Assembly as part of the budgetary process.
