President Bola Tinubu is set to present the 2024 Appropriation Bill to a joint session of the National Assembly this Wednesday.
The Federal Executive Council, presided over by Tinubu, approved the bill on Monday, with an increased budget of N27.5tn compared to the initially considered N26.01tn.
“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, ” stated Abubakar Bangudu, minister for budget and economic planning.
“The forecast revenue is now N18.32tn, higher than the 2023 revenues, including that provided in the two supplementary budgets, ” he further explained.
Key Details of the 2024 Appropriation Bill
Minister Bagudu revealed that the Federal Government aims for N18tn in revenue for the fiscal year 2024. Further details of the bill will be disclosed during the President’s presentation, covering aspects such as the Medium Term Expenditure Framework, which is currently under review by the Council.
“Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly.”
Revised Medium Term Expenditure Framework
The Council made significant changes to the Medium Term Expenditure Framework, including an exchange rate adjustment to N750 to $1 and raising the benchmark crude oil reference price to $77.96, reflecting a strategic move to boost government revenue.
“The changes will significantly increase government revenue that the President intends to use in supporting the eight priority areas, particularly Health, Education, infrastructure, security, and other developmental areas, ” Bangudu continued.
$1 Billion Budget Support Loan
The Federal Executive Council approved a $1 billion budget support loan from the African Development Bank, aimed at supporting ongoing economic reforms, power sector initiatives, social inclusion, and fiscal policy reforms. The loan carries an interest rate of 4.2% for 25 years with an eight-year moratorium.
“The $1 billion loan from AfDB is a budget support fund for ongoing economic reforms, ” said Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Tax Initiatives and Economic Measures
The Minister of Finance, Wale Edun, further highlighted the Fiscal Policy and Tax Reform Committee’s work. He emphasized initiatives such as the VAT removal on diesel. The committee aims to increase the tax-revenue-to-GDP ratio to 18%, focusing on digitalization and tax rationalization.
“The policy on VAT removal on diesel is from them, looking to help boost the fiscal situation of the government by increasing revenue.”
