President Bola Tinubu has assured that the nation’s economy will grow by a minimum of 3.76 per cent, above the forecast world average, while inflation is expected to be 21.4 per cent in 2024.
He made this declaration during his presentation of the 2024 budget proposal on Wednesday at a joint session of the National Assembly in Abuja.
“We expect the economy to grow by a minimum of 3.76 per cent, above the forecasted world average. Inflation is expected to moderate. 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,” he said.
Addressing the session for the first time, the President hinted that his administration would prioritise Nigeria’s national defence and internal security, local job creation, macroeconomic stability, investment environment optimization, human capital development, poverty reduction, and social security, among others.
According to him, the nation’s internal security architecture will be overhauled to enhance law enforcement capabilities with a view to safeguarding lives, property, and investments across the country.
On capital development, he said the budget will give particular attention to children because human capital remains the most critical resource for national development.
The President added, “To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. We will work more closely with development partners and the private sector in this regard.
“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.”
On the economy, President Tinubu affirmed that a stable macroeconomic environment is crucial for his administration’s bid to catalyze private investment and accelerate economic growth. His government shall continue to implement business and investment-friendly measures for sustainable growth.
He further stated, “We expect the economy to grow by a minimum of 3.76 per cent, above the forecasted world average. Inflation is expected to moderate to 21.4 per cent in 2024. 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.”
President Tinubu, due to partake in the United Nations Climate Conference (COP28) in Dubai, United Arab Emirates, this week, expressed hope that Nigeria will emerge with firm commitments to bolster its energy transition and development.
He added, “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 to bolster Nigeria’s energy transition.
“We must 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.
Speaking on the parameters of the budget, the President said a conservative oil price benchmark of 77.96 U.S. Dollars per barrel and a daily oil production estimate of 1.78 million barrels per day were adopted after a careful review of global oil market trends. He also mentioned that a Naira to U.S. Dollar exchange rate of 750 Naira per U.S. Dollar was adopted for 2024.
Giving a breakdown of the 2024 Appropriation Bill, 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 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.
“The budget deficit is projected at 9.18 trillion Naira in 2024 or 3.88 per cent of GDP. This is lower than the 13.78 trillion Naira deficit recorded in 2023, representing 6.11 per cent of GDP. The deficit will be financed by new borrowings totaling 7.83 trillion Naira, 298.49 billion Naira from privatization proceedings, and 1.05 trillion Naira drawdown on multilateral and bilateral loans secured for specific development projects.”
President Tinubu said his administration remains committed to broad-based and shared economic prosperity, adding: “We are reviewing social investment programs 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 by effectively implementing key public financial management reforms.
The President commended the patriotic resolve of the 10th National Assembly to collaborate with the Executive on the mission to renew the hope of Nigerians and deliver on the promises made to Africa’s largest population.
He said: “As you consider the 2024 Budget estimates, we trust that the legislative review process will be conducted with a view to sustaining our desired return to a predictable January-December fiscal year. I have no doubt that you will 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.”
