FG targets 3.76% economic growth, as job creation, others take centre stage in 2024 budget
…Says inflation expected to moderate to 21.4%
…Pledges to implement business-friendly measures for sustainable growth
…Finance Minister applauds Tinubu on 2024 budget, says N27.5trn budget will be financed with N8trn of borrowing
By Sodiq Adelakun
In his first budget presentation since taking office, President Bola Tinubu outlined an ambitious plan for Nigeria’s economic growth, targeting a 3.76 percent increase for the 2024 fiscal year.
During the presentation to the joint session of the 10th National Assembly, Tinubu introduced the ‘Budget of Renewed Hope,’ emphasising national security, job creation, and poverty alleviation as the government’s primary concerns.
President Tinubu expressed confidence that Nigeria’s economic expansion would surpass the projected global average, with an emphasis on steering the country towards a more sustainable and greener future.
Alongside economic growth, the administration is also focusing on moderating inflation, which is expected to decrease to 21.4 percent in 2024.
The budget proposal comes six months into Tinubu’s presidency and reflects his administration’s commitment to addressing some of the most pressing challenges facing the nation.
With security, employment, and poverty at the forefront, the ‘Budget of Renewed Hope’ is poised to set a new direction for Nigeria’s economic trajectory in the coming year.
“A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future… We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 per cent in 2024,” Tinubu said when he presented the 2024 budget proposal to a joint session of the 10th National Assembly in Abuja — his first since assuming office exactly six months ago.
Addressing the NASS, Tinubu promised to overhaul the nation’s internal security architecture to enhance law enforcement capabilities to safeguard lives, property and investments nationwide.
He said the proposed budget prioritises human capital development, with particular attention given to children because human capital remains the most critical resource for national development.
Therefore, “to improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability.
“In this regard, we will work more closely with development partners and the private sector,” he explained.
“To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024,” Tinubu added.
On the economy, Tinubu argued that a stable macroeconomic environment is crucial in his administration’s quest to catalyse private investment and accelerate economic growth.
…FG pledges to implement business-friendly measures for sustainable growth
Consequently, he affirmed that his administration will continue to implement business and investment-friendly measures for sustainable growth.
Giving a breakdown of the 2024 Appropriation Bill, the President said, “Accordingly, an aggregate expenditure of N27.5trillion is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is N9.92trillion while debt service is projected to be N8.25trillion and capital expenditure is N8.7trillion. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45 percent of the expected total revenue.
“The budget deficit is projected at N9.18trillion in 2024 or 3.88 per cent of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which represented 6.11 percent of GDP. The deficit will be financed by new borrowings totalling N7.83 trillion, N298.49billion from Privatisation Proceeds, and N1.05 trillion draw down on multilateral and bilateral loans secured for specific development projects.”
…Finance minister applauds Tinubu on 2024 budget, says N27.5trn budget will be financed with N8trn of borrowing
The Finance Minister and Coordinator of the Economy, Chief Wale Edun, has endorsed President Bola Tinubu’s submission of the N27.5 trillion budget for the year 2024.
In a conversation with journalists in Abuja on Wednesday, Edun praised the move as a positive step forward.
“As the president named it a budget of renewed hope, it is a budget that is taking us to the right direction in terms of making sure the economy is stable and making sure there is emphasis and reliance on the private sector.
“The President talked about improving security. The supplementary budget was largely aimed at funding the security architecture so that as he mentioned in his budget speech, there will be emphasis on private-public partnership.
“The N27.5 trillion budget will be financed with about N8 trillion of borrowing. This is a vast improvement on the previous situation.
“So deficit financing as the percentage of the overall economy is halved from over six percent to just about three per cent and that’s a move from a right direction, that is stability.
“That is really a priority for Mr President,” he said.
Edun also lauded the president on the exchange rate of N750 to dollar, saying it was realistic.
“We don’t have total control. But that’s a best estimate. If you look at where the exchange rate is now, it looks reasonable.
“The thing about assumptions is that they should be realistic and the things about estimates is that they should be reasonable.
“In this N27.5 trillion budget, the assumptions are realistic and the estimates are reasonable,” he said.
Also, the Minister of Budget and Economic Planning, Alhaji Abubakar Bagudu, said the President had a track record on budget implementation.
“There have been two supplementary budgets already. One, the N800 million and N500 billion, and the 2023 appropriation.
“The 2024 budget is further to cement the macro-economy. The National Assembly is going to scrutinise the budget and we hope that we would be able to pass it in the next few weeks.
“The budget is coming in good time to allow us a good time to allow for it to be passed Dec. 31.
“We are going to have a budget town hall meeting to ensure that the budget is peoples oriented,” he said.
Bagudu added, “We would have a town hall meeting where Nigerians can have a say. We are happy about the budget. We don’t believe that Nigerians should live on palliatives forever but that they get enough capital to live their life.”
