His Excellency, President Bola Ahmed Tinubu, GCFR, presented the 2024 Federal Government Budget Proposals at the joint session of the National Assembly in Abuja. The proposed budget is planning to spend N6.75tn of its projected N27.5tn budget on defense and security, education, and infrastructure in 2024.
The president noted that the government expects the country’s economy to grow by a minimum of 3.76 per cent (GDP as of the end of September 2023 was 2.54 per cent) despite the current inflationary headwinds. A conservative oil price benchmark of $77.96 per barrel and daily oil production estimate of 1.78 million barrels per day.
The key assumptions behind the budget and movements in the proposed fiscal parameters between the approved 2023 and 2024 Budgets are shown below:
Fiscal Parameters |
2023 Appropriation |
2024 Appropriation |
% Change |
Average exchange rate (N/$) |
435.57 |
750 |
72.19 |
Benchmark oil price (US$/barrel) |
70 |
77.96 |
11.37 |
Budget deficit (Ntn) |
11.348 |
9.18 |
-19.10 |
Capital Expenditure (Ntn) |
6.45 |
8.7 |
34.88 |
Debt service (Ntn) |
6.31 |
8.25 |
30.74 |
Defence and security sector (Ntn) |
2.22 |
3.25 |
46.40 |
GDP growth rate(%) |
3.75% |
3.76% |
0.27 |
Health sector (Ntn) |
1.58 |
1.33 |
-15.82 |
Oil production volume(bpd)million |
1.69 |
1.78 |
5.33 |
Total expendicture fiscal deficit (Ntn) |
21.83 |
27.5 |
25.97 |
Total revenue (Ntn) |
10.49 |
18.32 |
74.64 |
The average exchange rate is expected to shoot to 72.19% when compared with the average exchange rate of the previous year. This is expected as the naira is officially floated where the naira’s value against the U.S. dollar will now be determined by market forces of supply and demand rather than being solely controlled by the central bank.
The federal government is targeting an N18.32 trillion revenue generation to fund the budget, leaving the projected budget deficit at N9.18 trillion. This is projecting an economy growth by 3.76% in the 2024 fiscal year.
Aim of the budget: Tinubu said the budget proposal was aimed at completing critical infrastructure projects that would help address structural problems in the economy while lowering the costs of doing business for companies and the cost of living for the average Nigerian. macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.