The National Assembly has approved the budget for the 2024 fiscal year, raising it from the initial N27.5 trillion proposed by President Bola Tinubu to N28.7 trillion.
The passed budget, which reflects an increase of over N1.2 trillion, received approval from both the Senate and the House of Representatives.
The Senate further adjusted the exchange rate from N750 to N800 per dollar, while maintaining the 1.78mbpd daily oil production, a US$77.96 oil benchmark price, and a GDP growth rate of 3.88%, as proposed by the executive arm of the government.
The approval followed the consideration of the report of the Senate Committee on Appropriation, presented by Chairman Olamilekan Adeola, APC, Ogun West.
The budget, tagged “Budget of Renewed Hope” by President Tinubu, aims at economic revitalization and development.
President Tinubu had presented the budget to the joint session of the National Assembly on November 29, 2023.
The subsequent debate on its general principles commenced on November 30, 2023, leading to the suspension of plenary sessions to focus on budget defense sessions at committee levels.
The breakdown of the approved 2024 Budget is as follows:
- Aggregate: N28,777,404,73,861
- Statutory Transfer: N1,742,786,788,150
- Debt Service: N8,270,960,606,831
- Recurrent (non-debt) Expenditure: N8,768,513,380,852
- Contribution to Capital Expenditure: N9,995,143,298,28
Adeola urged the executive to ensure compliance and allocate adequate funds to the Ministries, Departments, and Agencies (MDAs).
In addition, the Senate approved the securitization of the outstanding 7.388 trillion Ways and Means following President Tinubu’s request. The move aims to reduce debt service costs and extend the repayment period of existing loans.
The Ways and Means provision allows the government to borrow from the Central Bank for short-term or emergency financing.
According to President Tinubu’s letter, the interest rate for the securitized Ways and Means advances has been reduced to 9% per annum, compared to the MPR of +3%.
The securitization involves the issuance of debt securities with a 40-year tenor to the CBN, with a 5% interest rate and a 3-year moratorium on principal repayments.
