Over Nine Trillion Naira Deficit in Nigeria’s Proposed 2024 Budget

The 2024 appropriation bill has been aptly named “Budget of Renewed Hope.” This budget proposal is coming at a time when the economy of the country has taken a hard toll on the citizenry.

Just recently, a supplementary budget of N2.1 trillion ($2.8 billion) was approved and passed into law by the new administration to fund projects and address key areas of the country.

The total amount of the budget is N27.5 trillion ($34.7). This is the first budget of the Tinubu administration, and if approved and passed into law, it will be the largest budget in the history of the country.

It surpasses the 2023 budget by 10.8%; the 2023 budget was N24.82 trillion.

• The budget proposal was based on an estimated average daily crude oil production of about 1.78 million barrels.
• The average crude oil price was set at USD 77.96 per barrel
• the economy to grow by a minimum of 3.76 percent
• Inflation is expected to moderate to 21.4 percent in 2024
• Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024.
• Non-debt recurrent expenditure is 9.92 trillion naira
• Debt service is projected to be 8.25 trillion naira (45%)
• Capital expenditure is 8.7 trillion naira
• The budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP.
• The deficit will be financed by new borrowings totaling 7.83 trillion Naira, 298.49 billion Naira from privatization proceeds, and 1.05 trillion Naira drawdown on multilateral and bilateral loans secured for specific development projects.

The president, in his presentation speech, highlighted the objectives the budget seeks to address.

They include:
● Defense and internal security
● Economic growth
● Human capital development
● Strengthening the educational sector
● Attracting investors and investments, amongst others.

Key Budget Allocations :

• Education: N1.23 trillion (7.9% of the budget)
• Health: N1.33 trillion (5% of the budget)
• Defense and Security: N3.25 trillion (12% of the budget)
• Infrastructure: N1.32 trillion (5% of the budget)
• Social Development and Poverty Reduction: N534 billion (2% of budget)

The budget has passed a second reading, with the national assembly promising a total scrutiny of the budget. Another key objective of the budget is to tackle and reduce inflation rates, even as national debts continue to increase.

Global economic conditions and growth are factors to consider as we go into the New Year, as the country’s economic health will be determined by these.

An average Nigerian may not understand some of these terms; what they do understand is a buoyant economy that is thriving and favorable to the people. We only hope the impact of the budget reaches key areas for a general response.

A full analysis and breakdown of the budget will be available on this site in due course.

2024 Budget Proposal