President Bola Tinubu presided over the Federal Executive Council (FEC) meeting, where the approval of the sum of N27.5 trillion for the 2024 appropriation bill was announced. The Minister of Budget and National Planning, Atiku Bagudu, disclosed that the targeted revenue for the next year is N18 trillion. The Medium Term Expenditure Framework (MTEF) was revised, with changes including an exchange rate of N750 to $1 and a benchmark crude oil reference price of $77.96.
Key Points:
President Bola Tinubu chaired the FEC meeting that approved N27.5 trillion for the 2024 appropriation bill.
Minister of Budget and National Planning, Atiku Bagudu, revealed the revision of the Medium Term Expenditure Framework (MTEF) with changes in the exchange rate and crude oil reference price.
The revised MTEF includes an exchange rate of N750 to $1 and a benchmark crude oil reference price of $77.96.
The targeted revenue for 2024 is N18 trillion, representing an increase from the previously estimated revenue using the old reference prices.
The aggregate expenditure for the 2024 appropriation bill is N27.5 trillion, reflecting an increase of over N1.5 trillion.
President Tinubu aims to use the increased government revenue to support priority areas such as health, education, infrastructure, and security.
Further details of the budget will be provided when the President presents it to the National Assembly.
Analysis: The approval of N27.5 trillion for the 2024 appropriation bill reflects the government’s commitment to funding key priority areas despite economic challenges. The revision of the Medium Term Expenditure Framework, with adjustments to the exchange rate and crude oil reference price, indicates a strategic approach to enhancing government revenue.
The targeted revenue of N18 trillion signals an ambitious but essential goal for sustaining government operations and implementing developmental projects. President Tinubu’s emphasis on supporting crucial sectors like health, education, infrastructure, and security aligns with the nation’s long-term growth objectives.
The approval of a $1 billion budget support loan from the African Development Bank (AfDB) further underscores the government’s efforts to secure external financing for economic development. Additionally, the focus on fiscal policies, tax reforms, and efforts to boost revenue through digitalization aligns with global trends in economic management.
The decision to refinance existing debt with a total limit of N2 trillion aims to reduce debt-servicing costs, demonstrating a proactive approach to managing the country’s debt profile. As the budget is presented to the National Assembly, more details on specific allocations and projects will provide a comprehensive view of the government’s priorities for the fiscal year.