In a historic moment at the joint sitting of the National Assembly, President Bola Tinubu presented the Federal Republic of Nigeria’s 2024 Budget Proposal, marking a significant milestone in his administration’s fiscal strategy.
The budget, themed “Budget of Renewed Hope,” places a strong emphasis on revenue targets, economic projections, and fiscal responsibility.
Below are ten takeaways from Tinubu’s budget presentation speech.
- Strategic Revenue Projections: President Tinubu emphasizes a meticulous review of developments in the world oil market, adopting a conservative oil price benchmark of $96 per barrel and a daily oil production estimate of 1.78 million barrels per day.
- Fiscal Responsibility: An aggregate expenditure of 5 trillion naira is proposed for the Federal Government in 2024, demonstrating a commitment to responsible financial management.
- Revenue Performance: The 2023 Budget projected an aggregate revenue of 8.28 trillion naira, with the Federal Government achieving an actual aggregate revenue inflow of 65 trillion naira as of September 30, reflecting robust revenue generation.
- Debt Service Commitment: Projected debt service is set at 45% of the expected total revenue, underscoring the government’s commitment to meeting debt obligations.
- Budget Deficit Management: The budget deficit is projected at 18 trillion naira in 2024, representing 3.88 percent of GDP. This marks a reduction from the 13.78 trillion naira deficit recorded in 2023, indicating prudent fiscal management.
- Debt Financing: The deficit will be financed by new borrowings totaling 83 trillion naira, 298.49 billion naira from Privatization Proceeds, and 1.05 trillion naira drawdown on multilateral and bilateral loans, providing transparency in financing sources.
- Economic Growth Projection: President Tinubu expects the economy to grow by a minimum of 7.6 percent, surpassing the forecasted world average, indicating a positive economic outlook.
- Inflation Management: Recognizing the impact of weak global conditions on inflation, the government pledges to ensure effective coordination of fiscal and monetary policy measures, showcasing a commitment to price stability.
- Sustainable Funding for Tertiary Education: A sustainable model for funding tertiary education, including the Student Loan Scheme, is set to become operational by January 2024, demonstrating a commitment to education development.
- Tax and Fiscal Policy Review: The government is actively reviewing tax and fiscal policies with a target to increase the ratio of revenue to GDP from less than 10 percent to 18 percent within the term of the administration, highlighting a focus on enhancing revenue streams.
President Tinubu’s 2024 Budget presentation underscores a commitment to strategic revenue management, debt responsibility, and economic growth.