In a strategic economic move, the Federal Government unveiled a projected N26 trillion budget for 2024, aiming for submission to the National Assembly by December 31, 2023.
The revelation came from Minister of Planning and Budget, Atiku Bagudu, following a pivotal Federal Executive Council (FEC) meeting led by President Bola Tinubu. The session, detailed by ministers including Mohammed Idris of Information and Wale Edun of Finance, outlined critical economic forecasts and initiatives, highlighting an aggregate expenditure of N26.01 trillion. This budget encompasses N1.3 trillion in statutory transfers, N10.26 trillion for non-debt recurrent spending, and a substantial N8.25 trillion allocated for debt service.
“The securitization of N22.7 trillion in governmental obligations significantly influences the debt service, contributing an additional N2.1 trillion,” Bagudu stated, acknowledging the surge in personnel costs due to pivotal labor agreements and potential salary adjustments.
The ministers underscored the approval of the 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper, mandatory for budget presentation, offering insights into economic trajectories. Projections include a crude oil reference price of $73.96 and a challenging exchange rate of N700.
In a parallel economic development, Edun announced the FEC’s endorsement for a $1.5 billion loan from the International Development Association, citing global high-interest trends and praising Nigeria’s macroeconomic strategies that secured such multilateral support.
“The financing, advantageous due to its concessional nature, targets swift disbursement,” Edun explained, mentioning an additional $80 million from the African Development Bank for Ekiti’s EKZ project, designed to propel youth into the tech-savvy knowledge economy.
Further, Minister Dave Umahi confirmed the FEC’s commitment to persisting with road projects initiated by previous governments, reinforcing infrastructure development.
Shifting administrative gears, the FEC, as disclosed by Idris, will transition its meetings to Mondays, providing flexibility for session frequencies based on issue urgencies.
