2024 N27.5trn budget: Tinubu targets 3.76 % economic growth, N9.18trn deficit

President Bola Tinubu has presented a N27.5 trillion budget, tagged “Budget of Renewed Hope” for the 2024 fiscal year

Tinubu made the presentation during a joint session of the National Assembly on Wednesday, stating that his administration is targeting 3.76 per cent economic growth.

A breakdown of the 2024 Appropriation Bill, shows an aggregate expenditure of N27.5 trillion out of which the non-debt recurrent expenditure is N9.92 trillion while debt servicing is projected at 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 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023, which represented 6.11 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 draw down on multilateral and bilateral loans secured for specific development projects,” Tinubu said.

He said the budget priorities macro- economic growth, poverty reduction, access to social welfare scheme and the overhaul of the national security architecture to the benefits of all Nigerians.

The President said the budget will invest in human capital which will inturn speed up economic growth with particular attention to children who are the backbone of every nation.

He pointed out that human capital affect economic growth and can help to develop an economy by expanding the knowledge and skills of its people.

He said: “We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent 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.

“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.

Persecond News report that, capital expenditure gulps N8.7 trillion, marking a significant increase of over 200 per cent increment from the 2023 vote of N5.9 trillion.

“The Overall budget deficits is N9.8 trillion representing 3.88 percent of GDP which is to be financed mainly by borrowings made up of domestic sources of “N7.83 trillion, N298.49 billion naira from privatization proceeds, and 1.05 trillion naira draw down on multilateral and bilateral loans secured for specific development projects,” the President said.

President Tinubu said his administration remains committed to broad-based and shared economic prosperity, adding: “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.”