In a recent development, the Federal Executive Council (FEC) has unveiled its ambitious proposal for the 2024 fiscal year, setting the stage for a substantial budgetary allocation of N26.01 trillion.
The announcement was made following a Council meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
One of the central goals of this budget proposal is to uphold the tradition of a January to December budget cycle, with the aspiration that the 2024 budget will be approved and signed into law before the year’s end in 2023.
Minister of Budget and Planning, Atiku Bagudu, disclosed this significant financial plan and outlined several key aspects of the budget.
Among them, the FEC has approved the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP), as required by the Fiscal Responsibility Act.
Bagudu provided an overview of the assumptions underlying the budget, including a reference price of $73.96 for crude oil, an exchange rate set at $700, anticipated oil production of 1.78 million barrels per day, a debt service projection of N8.25 trillion, an inflation rate of 21 percent, and a GDP growth estimate of 3.76 percent.
This proposal also allocates N1.3 trillion to statutory transfers, N10.26 trillion to non-debt recurrent expenditure, N8.25 trillion to debt service, and N7.78 trillion for personnel and pension costs.
The Minister emphasized that the increase in debt service is linked to the government’s strategy to reduce federal debt costs to 9 percent, resulting in an additional N2.1 trillion.
Minister Bagudu stressed that these measures are aimed at achieving economic stability and growth, making the 2024 budget an essential step in Nigeria’s financial journey.
The FEC has now set the stage for consultations and the presentation of this comprehensive financial framework to the National Assembly.
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