FEC okays N27.8 trillion deficit budget for 2024

 

ABUJA, Nigeria – The Federal Executive Council (FEC) on Monday approved N27.5 trillion aggregate expenditure for the 2024 appropriation bill, marking a significant stride in Nigeria’s fiscal planning.

 

President Bola Tinubu is poised to present this budget to a joint session of the National Assembly, highlighting the government’s financial priorities for the coming year.

 

This budget approval, higher than the initial projection of N26 trillion, reflects adjustments made after the passage of the Medium-Term Framework (MTEF) and Fiscal Policy document by the National Assembly.

 

The Council’s decision to revise the Medium-Term Economic Framework and Fiscal Policy document, pegging the exchange rate at N750 to a dollar and a crude oil benchmark of $77, is aimed at bolstering revenue and supporting key sectors like health, education, infrastructure, and security.

 

The Minister of Finance, Wale Edun, emphasized the importance of securing concessional budget support loans totaling $1 billion from the African Development Bank and $15 million from the Canada-African Development Bank Climate Fund. These funds are earmarked for specific projects in Abia State and signify the government’s efforts to enhance infrastructure and manage finances more effectively.

 

In parallel, the Fiscal Policy and Tax Reform Committee’s briefing to the FEC showcased their 90-day progress, focusing on reforms to boost revenue through measures like VAT removal on diesel and digitalization strategies. Their target of increasing the tax revenue to GDP ratio to 18% aligns with African standards and signifies a push for economic growth.

 

Additionally, the FEC greenlit the procurement of baggage scanners for five international airports to streamline security checks and enhance passenger experiences, costing N3.23 billion.

 

As the 2024 budget heads to the National Assembly, the Speaker of the House of Representatives, Hon. Abbas Tajudeen, highlighted plans for a town hall meeting to involve stakeholders in the budget process, ensuring transparency and citizen engagement. The intention is to enable Nigerians to contribute to the budget deliberations, fostering a more inclusive decision-making process.

 

This proactive engagement by the House aligns with its commitment to transparent governance and citizen involvement. The goal is to expedite the budgetary process while maintaining thorough scrutiny and ensuring the budget serves the best interests of Nigerians.

 

President Tinubu’s imminent presentation of the 2024 budget underscores the government’s dedication to sustaining a coherent and timely budgetary cycle, echoing the earlier initiatives launched by former President Buhari.

 

The collaborative efforts between the executive and legislative branches reflect a unified approach toward advancing Nigeria’s economic and developmental agenda.