President Bola Tinubu is set to present the 2024 Appropriation Bill to a joint session of the National Assembly on Wednesday. This announcement follows the approval of the 2024 Appropriation Bill by the Federal Executive Council, now standing at N27.5 trillion, an increase from the initial N26.01 trillion under consideration.
Minister of Budget and Economic Planning, Abubakar Bagudu, shared the details after the weekly FEC meeting, chaired by President Tinubu in Abuja. He disclosed that the Federal Government anticipates a revenue projection of N18 trillion for the fiscal year 2024. Further specifics of the appropriation bill will be unveiled during the presentation to the National Assembly.
Bagudu also mentioned that the Council is currently reviewing the Medium Term Expenditure Framework passed by the National Assembly. The revised framework includes an exchange rate of N750 to $1 and a benchmark crude oil price of $77.96.
In addition, the Federal Executive Council approved a $1 billion budget support loan from the African Development Bank. The loan, with an interest rate of 4.2% over 25 years and an eight-year moratorium, is aimed at supporting ongoing economic reforms in areas such as the power sector and social inclusion.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the government’s focus on fiscal policy reforms, including tax initiatives. The Fiscal Policy and Tax Reform Committee have been actively working on recommendations to boost revenue, with plans to increase the tax-revenue-to-GDP ratio to 18%.
Edun also shared that the Federal Executive Council approved a total limit of N2 trillion for the Ministry of Finance to utilize in the market, intending to refinance expensive debt with cheaper funding and save about N50 billion in debt servicing.
Ahead of the budget presentation, Secretary of Research and Information at the National Assembly, Dr. Ali Barde Umoru, confirmed that Tinubu would present the appropriation bill on Wednesday. The Speaker of the House of Representatives, Tajudeen Abbas, further announced plans for a Budget Town Hall Meeting to gather citizens’ inputs into the 2024 Appropriation Bill, emphasizing the House’s commitment to inclusive governance.
Despite concerns about potential delays in the January-December budget cycle, lawmakers express confidence in President Tinubu’s economic team and readiness to expedite the budget consideration process for the benefit of Nigerians.
