The proposed budget for 2024 is N26.01 trillion as suggested by the FG.

admin October 17, 2023
Updated 2023/10/17 at 8:15 AM

The Federal Executive Council (FEC) has proposed a budget of N26.01 trillion for the 2024 fiscal year. The government aims to maintain the January to December budget cycle and ensure that the 2024 budget is passed and signed before December 31, 2023.

The Minister of Budget and Planning, Atiku Bagudu, made this announcement after a Council meeting chaired by President Bola Tinubu in Abuja. Bagudu, along with several other ministers, including those from the Ministry of Information and National Orientation, Ministry of Finance and Coordinating Minister of Economy, Works, Industry, Trade and Investment, and Labour and Employment provided updates on the Council’s decisions. One of the decisions was the approval of the 2024-2026 Medium Term Expenditure Framework.

The person mentioned that the FEC had assumptions regarding the reference price for crude oil, which is $73.96, an exchange rate of $700, and an oil production of 1.78 million barrels per day.

They also stated that the debt service is N8.25 trillion, with an inflation rate of 21% and a GDP growth rate of 3.76%.

They mentioned that these assumptions were presented in light of the commendable measures taken since June to restore macroeconomic stability, such as the deregulation of petroleum prices and the regulation of the foreign exchange market.

The person stated that the council discussed the implications of these measures, including the impact on consumer credits, mortgages, and institutional changes in ministries. The objective was to generate growth for the country.

The council members acknowledged the progress made so far and expressed hope for the future.

He clarified that the Medium Term Expenditure Framework is a necessary part of the Fiscal Responsibility Act. The Fiscal Responsibility Act is applicable for the years 2024 to 2026.

The reference price of several hundred dollars assumes confidence that investment flows will continue. This belief is based on various engagements, including those led by the President, the coordinating Minister of the Economy, the Minister of Trade and Investment, and other ministers.

Additionally, the Governor of the Central Bank of Nigeria and other ministers are now actively engaging in these efforts.

We anticipate that these inflows will assist in clearing the backlog, leading to a stronger exchange rate compared to its current weakness.

Regarding assumptions, I previously mentioned…

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