..to overhaul nation’s security architecture
..as Akpabio raises concerns over nation’s debt profile
President Bola Ahmed Tinubu on Wednesday presented N27 trillion budget to the Joint sitting of National Assembly with deficit of N9.18 trillion for the fiscal year.
Speaking during the presentation of the proposed N27 trillion 2024 budget at the national assembly, President Bola Tinubu said the deficit represents 3.88 percent of Nigeria’s gross domestic product (GDP).
The president said the N9.18 trillion deficit is lower than the “N13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP”.
According to him, the deficit will be financed by new borrowings totaling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects.
Tinubu said the government also projected that inflation will moderate to 21.4 percent in 2024, noting that the country is currently reviewing its tax and fiscal policies.
“Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this administration,” he said.
The president said the country is also exploring public-private partnership arrangements to finance critical infrastructure.
Speaking further, Tinubu told lawmakers that Federal government will spend N8.25 trillion on debt servicing in the N27 trillion 2024 budget, projecting that the economy will grow by 3.76 percent.
He said, the revised 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sets out the parameters for the 2024 Budget.
‘’ After a careful review of developments in the world oil market and domestic conditions, we have adopted a conservative oil price benchmark of 77.96 US Dollars per barrel and daily oil production estimate of 1.78 million barrels per day. We have also adopted a Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024.
‘’Accordingly, an aggregate expenditure of 27.5 trillion naira is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion naira while debt service is projected to be 8.25 trillion naira and capital expenditure is 8.7 trillion naira.
Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.
‘Budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP. ‘
‘The deficit will be financed by new borrowings totalling 7.83 trillion naira, 298.49 billion nairafrom Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects.’
Tinubu said the budget will cement macroeconomic stability, reduce the deficit, and increase capital spending and allocation to reflect the eight priority areas of this administration.
Tinubu added that a stable macroeconomic environment is important to catalyse private investment and accelerate economic growth.
Speaking on the security situation , Tinubu told the lawmakers that the nation’s security architecture will be overhauled on his watch.
He said the federal government will re-organise Nigeria’s entire internal security architecture.
Highlighting key issues in the appropriation bill, Tinubu said the budget seeks to achieve “job-rich economic growth, macro-economic stability”, better investment environment, and access to social security.
Tinubu said, “Defence and internal security are accorded top priority.”
He said the 2024 budget has the potential to boost performance, promote the development of micro, small and medium-sized enterprises, enhance security and public safety, and improve the general living conditions of our people.
“I am confident that these budgetary allocations and directives will set Nigeria on a transformative path towards a sustainable and resilient energy future, fostering economic growth, job creation, and environmental preservation,” he said.
President added that despite global headwinds, the Nigerian economy has proven resilient, maintaining modest but positive growth over the past twelve months.
In his opening remarks, President of the Senate, Senator Godswill Akpabio on Wednesday raised concern over nation high debt profile appealing to President Bola Tinubu to reduce country’s debt profile.
Akpabio who spoke at the joint session of the National Assembly for the budget presentation. called for the merging of some government agencies which have no definite job to do.
Akpabio also asked Mr President to unbundled some agencies for effectiveness .
The President of the Senate who admitted that the removal of fuel subsidy caused economic hardship in the country applauded President Tinubu for his response to ameliorate the suffering of Nigerians .
“We will maintain a cordial relationship with the the Executive Arm
while ensuring that the principles of separation of powers as well as checks and balances as enshrined in our Constitution are observed in the overriding public interest.
” It is an opportunity for us to deliberate, scrutinize, and collaborate in order to ensure that the budget aligns with the needs, hopes, and aspirations of our people.
“It is our duty to ensure that the budget reflects the principles of transparency, accountability and inclusiveness.
“we need to encourage the Executive Arm to unbundle some agencies for effectiveness, and merge agencies of Government which job definitions or or roles overlap for greater effectiveness. We deem it necessary for our country to go back to agriculture as a way of stopping the overdependence on crude oil.
“We also want to plead with the Government to do all within its powers to reduce our high debt profile. We know that Mr President inherited this worrisome burden.
” But then the mark of a great leader is that he fixes the problems wherever they exist.”
