The Federal Government of Nigeria has greenlit a supplementary budget of N2.18tn for the fiscal year 2023. This additional funding aims to tackle pressing issues, including national defense and security, as well as provide welfare packages for both workers and the broader Nigerian populace. Minister of Budget and Economic Planning, Abubakar Bagudu, disclosed the allocation details after the Federal Executive Council meeting chaired by President Bola Tinubu. The supplementary budget reflects the government’s commitment to fortify critical sectors and address immediate needs.
Key Points:
- Funding for National Defense and Security:
- An allocation of N605 billion is earmarked to sustain and enhance the progress in the national defense and security sector. These funds will be made available to security agencies to bolster efforts before year-end.
- Infrastructure Rehabilitation and Road Maintenance:
- A sum of N300 billion has been set aside for the repair and maintenance of vital bridges, including Eko and Third Mainland bridges, along with nationwide road construction and rehabilitation projects to be completed before the onset of the rainy season.
- Wage Awards and Cash Transfers:
- N210 billion is allocated for the payment of wage awards, covering approximately 1.5 million federal government employees for the months of September through December 2023.
- The Council approved N400 billion for cash transfer payments, which will include an additional N100 billion funded by the federal government, extending the initiative beyond initial plans.
- Agriculture and Infrastructure Support:
- N200 billion is designated for seed, agricultural input, supplies, and infrastructure to bolster production in the agricultural sector.
- N100 billion is dedicated to improving infrastructure in the Federal Capital Territory.
- Electoral Process Funding:
- The Independent National Electoral Commission (INEC) is allocated N18 billion for the conduct of elections in Bayelsa, Kogi, and Imo in November.
- Student Loan Scheme and New Ministries:
- N5.5 billion is earmarked for the take-off of a student loan scheme in January 2024.
- N8 billion is set aside for the initial grant of new ministries.
- Capital Supplementation for Urgent Requests:
- N200 billion is allocated for capital supplementation to address urgent requests from various parts of the country.
Conclusion: The approval of a supplementary budget of N2.18tn demonstrates the Nigerian government’s dedication to addressing critical national priorities. This funding will be directed towards national defense and security, infrastructure rehabilitation, wage awards, cash transfers, agriculture, electoral processes, student loans, and other urgent needs. While the government intends to fund these expenditures through recent policy adjustments, it is also prepared to raise domestic borrowing if necessary. This strategic approach reflects the administration’s commitment to maintaining a balanced and timely budget implementation cycle. President Bola Tinubu’s emphasis on fiscal responsibility underscores the importance of sustainable economic practices in Nigeria’s growth trajectory.
