Nigeria’s President Bola Tinubu, yesterday, listed internal security, human capital development, local job creation, poverty reduction among priority areas of focus of his administration in 2024.
Tinubu disclosed this while addressing a joint session of the National Assembly on the 2024 Appropriation Bill proposal in Abuja.
He also identified macro-economic stability, investment environment optimization, and social security as other top priorities of the 2024 Budget of Renewed Hope, according to a statement by his spokesperson, Ajuri Ngelale.
The President was quoted as saying that Nigeria’s internal security architecture will be overhauled to enhance law enforcement capabilities with a view to safeguarding lives, property, and investments across the country.
He said: “To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. In this regard, we will work more closely with development partners and the private sector.
“To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024.”
Expects 3.76% growth
On the economy, Tinubu’s projections anticipate a minimum growth rate of 3.76% and inflation slowing to 21.4%, against a conservative oil price benchmark of $77.96/barrel and 1.78 million barrels daily production capacity, and exchange rate at N750/$.
Giving a breakdown of the 2024 Budget the President said: “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 N9.92 trillion while debt service is projected to be N8.25 trillion and capital expenditure is N8.7 trillion. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.
“The budget deficit is projected at N9.18 trillion in 2024 or 3.88% of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which represented 6.11% of GDP.
“The deficit will be financed by new borrowings totaling N7.83 trillion, N298.49 billion from privatization proceeds, and N1.05 trillion draw down on multilateral and bilateral loans secured for specific development projects.”
Efforts will be made to further contain financial leakages through the effective implementation of key public financial management reforms.
Macro economy
Noting that a stable macro-economic environment is crucial to catalyzing private investment and accelerating economic growth, the President said his government will continue to implement business and investment-friendly measures for sustainable growth.
He continued: “In preparing the 2024 Budget, our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.
“Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation, and other sectors.
“This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources.
“By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.
“As we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition.
“It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.
“Together, we will strive for Nigeria to emerge from COP28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship,” he said.
Social investment
Reiterating his commitment to broad-based and shared economic prosperity, Tinubu added: “We are reviewing social investment programmes to enhance their implementation and effectiveness. In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.”
He also said efforts will be made to further contain financial leakages through the effective implementation of key public financial management reforms.
In this regard, the President tasked the lawmakers to conduct their legislative review of the budget with a view to sustaining a predictable January-December fiscal year.
He equally charged them to “be guided by the interest of all Nigerians. We must ensure that only projects and programs with equitable benefits are allowed into the 2024 Budget.
“Additionally, only projects and programs that are in line with the sectoral mandates of MDAs and those which are capable of realizing the vision of our administration should be included in the budget.”
