The Federal Government has put forward a proposal of 26.01 trillion naira for the 2024 Appropriation.

 

The Federal Government is taking significant steps to maintain the January to December budget cycle, with a goal of passing and signing the 2024 budget before December 31, 2023. This development was disclosed by the Minister of Budget and Planning, Atiku Bagudu, following a meeting presided over by President Bola Tinubu at the Council Chamber in the Presidential Villa, Abuja.

During the briefing with State House correspondents after the Federal Executive Council (FEC) meeting, several ministers were present, including Mohammed Idris from the Ministry of Information and National Orientation, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, Engr. Dave Umahi, the Minister of Works, Doris Uzoka-Anite representing the Ministry of Industry, Trade, and Investment, Simon Lalong from the Ministry of Labour and Employment, and Nkeiruka Onyejecha, the Minister of State for Labour.

One of the significant outcomes of this meeting was the approval of the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP). This approval aligns with the Fiscal Responsibility Act's requirement for the executive to present a medium-term economic outlook to the National Assembly ahead of budget presentations.

The Minister of Budget and Planning, Atiku Bagudu, presented some key assumptions made by the FEC regarding the 2024 budget. These assumptions included a reference price for crude oil at $73.96, an exchange rate of N700/$, oil production estimated at 1.78 million barrels per day, debt service amounting to N8.25 trillion, inflation at 21 percent, and a projected GDP growth rate of 3.76 percent.

The proposed 2024 budget was presented with an estimated aggregate expenditure of N26.01 trillion, encompassing statutory transfers of N1.3 trillion, non-debt recurrent expenditure amounting to N10.26 trillion, debt service projected at N8.25 trillion, and N7.78 trillion allocated for personnel and pension costs.

Minister Bagudu explained that the increase in debt service was attributed to the federal government's debt scrutiny at nine percent, resulting in a significant increment. Personnel costs also rose due to transfers as part of the agreement with labor.

Furthermore, the Federal Executive Council approved applications for financing from the World Bank and the International Development Association (IDA), which offers nearly zero-interest financing. The total financing from the World Bank amounted to $1.5 billion, and it was presented as support for Nigeria's efforts to restore balance in the economy and government finances.

In addition, the FEC approved an $80 million financing from the African Development Bank for the Ekiti Knowledge Zone Project (EKZ), aimed at empowering young people in technology and the knowledge economy sector.

Lastly, the Minister of Works, Engr. Dave Umahi, presented a memo addressing the scope of road infrastructure inherited from previous administrations, totaling 18,897 kilometers of roads and bridges. The FEC approved the continuation of these projects and directed a committee to strategize funding solutions. Additionally, the council encouraged using concrete for ongoing projects to mitigate inflation and variation.

Notably, the Federal Executive Council meetings have now been rescheduled to take place on Mondays, diverging from their previous Wednesday schedule.