In a bid to address key areas of national development, the President Bola Tinubu-led administration has outlined a comprehensive budget plan for 2024, allocating N6.75tn out of the projected N27.5tn budget to defence, security, education, and infrastructure.
The Minister of Budget and National Planning, Abubakar Bagudu, revealed the breakdown during the presentation of the 2024 budget on Wednesday. Notably, N6.48tn, constituting 96 per cent of the allocated amount for the mentioned sectors, is earmarked for personnel and pension, indicating an increase of N576.16bn compared to the 2023 provision. The administration aims to generate N10.4tn from taxes, dividends, and other sources.
President Tinubu, while presenting the budget, themed ‘Budget of Renewed Hope,’ emphasized its focus on completing critical infrastructure projects to address structural issues in the economy and reduce the cost of doing business and living for Nigerians.
“The proposed budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security,” declared President Tinubu.
Defence and internal security are accorded top priority, with plans for an overhaul to enhance law enforcement capabilities and safeguard lives, property, and investments across the country. Tinubu underscored the significance of human capital in national development, particularly emphasizing attention to children as the foundation of the nation.
The budget proposal expects the country’s economy to grow by a minimum of 3.76 per cent, with measures to moderate inflation to 21.4 per cent in 2024, down from 27.33 per cent at the end of October.
The 2024 budget encompasses a conservative oil price benchmark of $77.96 per barrel and a daily oil production estimate of 1.78 million barrels per day. With a Naira to US Dollar exchange rate set at N750/$ for 2024, the Federal Government proposes an aggregate expenditure of N27.5tn. Non-debt recurrent expenditure is pegged at N9.92tn, debt service at N8.25tn, and capital expenditure at N8.7tn.
A significant highlight is the increased funding to the education sector, with N2.18tn allocated, marking a 101.85 per cent boost compared to the 2023 budget. Defence and security receive a 46.39 per cent increase to N3.25tn, while the health sector sees a 23.15 per cent rise to N1.33tn.
Infrastructure development across power, transport, water resources, aviation, works, and housing sectors will be supported with N1.32tn. The government, aiming to encourage private sector involvement in infrastructure provision, has given ministries directives to attract domestic and foreign investors for the nation’s development.
Additionally, N534bn is designated for social investments and poverty reduction programs in 2024. The budget forecasts N10.26tn for non-debt recurrent expenditure, N8.25tn for debt servicing, N243bn for sinking funds, and N8.70tn for capital expenditures.
As the government strives to meet its debt obligations, the budget deficit is projected at N9.18tn, representing 3.88 per cent of GDP. The deficit will be financed by new borrowings totaling N7.83tn, N298.49bn from privatisation proceeds, and N1.05tn drawdown on multilateral and bilateral loans secured for specific development projects.
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, highlighted the budget’s realistic assumptions and the government’s commitment to fiscal responsibility. The budget prioritizes revenue generation, expenditure management, and a reduction in reliance on borrowings.
Lawmakers across party lines praised the budget’s attempt to reduce the deficit and increase capital expenditure. The Senate and the House of Representatives are expected to scrutinize and pass the budget in the coming weeks.
While the budget presentation received positive feedback, it was not without controversy as lawmakers chanted slogans associated with President Tinubu. Opposition parties, particularly the Peoples Democratic Party (PDP), condemned the actions, labeling them as an attempt to force Tinubu’s ‘illegitimate’ presidency onto Nigerians. The APC defended the chants, considering them a celebration of the president’s mandate.
In conclusion, the 2024 budget aims to navigate the challenges of a global and domestic economic environment, emphasizing responsible fiscal management, revenue generation, and private sector collaboration to drive Nigeria’s economic growth and development.
