President Bola Tinubu on Wednesday submitted a N27.5 trillion budget proposal for the 2024 fiscal year to a joint session of the National Assembly. The budget, which he called “Budget of Renewed Hope”, is aimed at accelerating the economic recovery and sustaining the growth momentum.
The 2024 budget is N2.7 trillion higher than the 2023 budget of N24.82 trillion, representing an increase of 10.9 per cent. The budget is based on the following assumptions: an exchange rate of N750 per dollar; an oil price of $77.96 per barrel; an oil production of 1.78 million barrels per day; a GDP growth rate of 3.76 per cent; and an inflation rate of 21.4 per cent.
The president said the budget has a total revenue projection of N18.32 trillion, consisting of N7.94 trillion from oil sources and N10.39 trillion from non-oil sources. The budget deficit is estimated at N9.18 trillion, which is 3.88 per cent of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which was 6.11 per cent of GDP.
The president said the deficit will be financed by new borrowings of N7.83 trillion, privatisation proceeds of N298.49 billion and multilateral and bilateral loans of N1.05 trillion.
The Minister of Budget and Economic Planning, Atiku Bagudu, who gave a breakdown of the budget later in the day, said the budget has a capital expenditure of N8.7 trillion, representing 31.6 per cent of the total expenditure. The recurrent expenditure is N18.51 trillion, comprising N10.26 trillion for non-debt recurrent expenditure and N8.25 trillion for debt servicing. The budget also has a provision of N234 billion for sinking fund to retire maturing bonds.
The minister said the budget has allocated N6.48 trillion for personnel and pension costs, which is 23.6 per cent of the total expenditure.
The minister said the budget has prioritised the defence and security sector, which received the highest allocation of N3.25 trillion, or 11.8 per cent of the budget. This is followed by the education sector, which got N2.2 trillion, or 8 per cent of the budget. The health sector received N1.4 trillion, or 5.1 per cent of the budget, while the infrastructure sector got N1.32 trillion, or 4.8 per cent of the budget.