President Bola Tinubu unveiled the 2024 budget proposal, dubbed the ‘Budget of Renewed Hope,’ during a joint session of the National Assembly on Wednesday. Key highlights include a conservative oil price benchmark of $77.96 per barrel and an exchange rate of N750 to the US dollar.
In his address to the National Assembly, President Tinubu emphasized the careful consideration of global oil market dynamics and domestic conditions that informed the budget parameters. The proposed daily oil production estimate stands at 1.78 million barrels per day.
The budget allocates an aggregate expenditure of N27.5 trillion for the Federal Government in 2024. Non-debt recurrent expenditure is set at 9.92 trillion naira, debt service is projected to be 8.25 trillion naira, and capital expenditure is earmarked at 8.7 trillion naira.
President Tinubu reiterated Nigeria’s commitment to meeting its debt obligations, with projected debt service accounting for 45% of the expected total revenue. The budget deficit for 2024 is estimated at 9.18 trillion naira, equivalent to 3.88% of the GDP. This represents a decrease from the 2023 deficit of 13.78 trillion naira, constituting 6.11% of the GDP.
To cover the deficit, the government plans new borrowings totaling 7.83 trillion naira, with an additional 298.49 billion naira sourced from Privatization Proceeds and 1.05 trillion naira from multilateral and bilateral loans secured for specific development projects.
The proposed budget signals a strategic approach to fiscal management, balancing economic growth with prudent financial measures. As deliberations unfold in the National Assembly, stakeholders will closely examine the allocations, focusing on key sectors and development initiatives outlined in the ‘Budget of Renewed Hope.’
