Nigerian government plans to spend N27.5trillion in fiscal year 2024, an ambitious budget designed to reflate the economy.
President Bola Tinubu formally presented the 2024 appropriation bill to a joint sitting of the National Assembly today, 29 November 2023.
He titled the document as “Budget of Renewed Hope.”
Three weeks ago, the administration shared the 2024–2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper with the lawmakers.
The documents exposed government’s proposal to spend N26.1 trillion for the 2024 fiscal year.
The Senate Committee on Finance vetted and approved the projections after meetings with heads of government ministries and agencies.
The lawmakers however jerked up the proposed expenditure by an extra N400billion.
With the formal presentation of the jointly agreed figures by the President, the 2024 budget is expected to receive accelerated approval.
This is the first official and full fiscal budget by the new administration which came into office on 29 May 2023.
2023 Supplementary Budget
Early this month, the President however presented and got legislative approval to spend an additional N2.17trillion for 2023.
He told the Assembly that the supplementary budget will strengthen Nigeria’s security architecture and address critical infrastructure deficit.
Following legislative approval, he signed the appropriation law on 8 November 2023.
According to the Budget and Economic Planning Minister, Abubakar Bagudu, 30 percent of the budget is for defence and security. Another 35 percent went to Works, FCT, and Housing & Urban Development Ministries. The Administration also reserved 32 percent of the budget to cover the new wage award for federal workers, enable direct cash transfers to vulnerable persons, and support INEC.
The Supplementary Budget was widely criticised for items that showed government planned to spend money on purchase of a presidential yatch, luxury vehicles, and renovation of properties in Lagos and Abuja.