In the discharge of my esteemed duties as the President of the Federal Republic of Nigeria, I stand before this Joint Session of the 10th National Assembly to present the 2024 Budget Proposal a moment of great significance as it marks my inaugural annual budgetary presentation to the esteemed assembly.
I extend my appreciation to the Distinguished Senators and Honourable Members for your swift consideration and passage of the 2023 Supplementary Appropriation Bills and the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper. Your prompt action exemplifies your commitment to economic development and the welfare of our people.
This collaboration between the Executive and Legislative branches, showcased in your prompt actions, reinforces our collective dedication to serving the Nigerian people.
As we navigate through the deliberations on the 2024 Budget, I trust that the National Assembly will continue to work closely with us to ensure thorough discussions concluded with reasonable dispatch, with the goal of having the Appropriation Act in effect by January 1, 2024.
Reflecting on our shared history, my first fiscal intervention as President was to terminate the fuel subsidy regime, acknowledging its detrimental impact on our national economy. Subsequently, we negotiated and presented supplementary budgets to fund crucial items, prioritizing macro-economic stability and alleviating the effects of subsidy removal.
Today, I present the Budget of Renewed Hope, envisioning a budget that surpasses previous efforts, fostering macro-economic stability, reducing the deficit, and amplifying capital spending. This budget is meticulously crafted to align with the eight priority areas of our Administration, laying the foundation for the future of our great nation.
SUCCESSIVE ECONOMIC ENVIRONMENT
Both domestic and international economic conditions remain difficult both abroad and at home. Despite persistent Post-Covid supply and production bottlenecks, armed conflict in various parts of the world, and restrictive monetary policies in major economies, we expect global growth in 2024 to be around 3.0 percent. Because of our current reliance on importations, this relatively low rate has significant implications for our economy.
Distinguished Senators and Honourable Members, despite global headwinds, the Nigerian economy has proven resilient, posting modest but positive growth over the past 12 months.
Because of the weak global economy, inflation has risen. We will ensure effective coordination of fiscal and monetary policy measures, as well as collaboration with sub-national governments, to address structural factors driving inflation in Nigeria.
The Budget proposal achieves our goal of completing critical infrastructure projects that will assist in addressing structural problems in the economy by lowering the costs of doing business for businesses and the cost of living for the average person. The Honourable Minister of Budget and Economic Planning will provide full details of this proposal.
BUDGET PERFORMANCE IN 2023
Distinguished Senators and Honourable Members, an aggregate revenue of 11.045 trillion naira is projected to fund the 24.82 trillion naira budget for 2023, with a deficit of approximately 6.1 percent of GDP.
The Federal Government’s actual aggregate revenue inflow as of September 30 was 8.65 trillion naira, or approximately 96 percent of the targeted 8.28 trillion naira.
Despite the difficulties, we continue to fulfill our obligations.
THEME AND PRIORITIES OF THE BUDGET FOR 2024
Distinguished Senators and Honourable Members, please allow me to highlight key issues concerning the budget proposals for the coming fiscal year. The Budget of Renewed Hope is the theme of the 2024 Appropriation.
The proposed Budget aims to achieve job-creating economic growth, macroeconomic stability, a better investment environment, improved human capital development, poverty reduction, and increased access to social security.
Defense and internal security are given first priority. The internal security architecture will be redesigned to improve law enforcement capabilities and protect lives, property, and investments across the country.
The most important resource for national development is human capital. As a result, the budget prioritizes human development, with a special emphasis on children, the foundation of our nation.
The government will focus on ensuring value for money, greater transparency, and accountability to improve the effectiveness of our budget performance. We will collaborate 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 tertiary education funding will be implemented, including the Student Loan Scheme, which is set to go into effect in January 2024.
A stable macroeconomic environment is critical for stimulating private investment and accelerating economic growth. We have implemented and will continue to implement business and investment-friendly policies in order to achieve long-term growth.
We anticipate that the economy will grow by at least 3.76 percent, exceeding the projected global average. In 2024, inflation is expected to fall to 21.4 percent.
Our primary goal in developing the 2024 Budget has been to maintain our solid foundation for long-term economic development. Nigeria’s commitment to a greener future is a critical focus of this budget and the medium-term expenditure framework.
We have strategically made provisions to leverage private capital for large-ticket infrastructure projects in energy, transportation, and other sectors, with a focus on public-private partnerships.
This is an important step toward diversifying our energy mix, improving efficiency, and encouraging the development of renewable energy sources.
We hope to position Nigeria as a regional leader in the global movement toward clean and sustainable energy by allocating resources to support innovative and environmentally conscious initiatives.
As we approach the COP 28 climate summit, a watershed moment for global climate action, I have directed relevant government agencies to work tirelessly to secure substantial funding commitments to support Nigeria’s energy transition.
We must seize this opportunity to attract international partnerships and investments that align with our national objectives. I encourage our representatives to engage in proactive efforts to demonstrate the progress we have made in creating an enabling environment for sustainable energy projects.
We will work together to ensure that Nigeria leaves COP 28 with tangible commitments, reinforcing our commitment to a future in which energy is not only a catalyst for development but also a driver of environmental stewardship.
The revised 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), distinguished members of the National Assembly, establishes the parameters for the 2024 Budget.
Following a thorough examination of global oil market developments and domestic conditions, we have established a conservative oil price benchmark of 77.96 US dollars per barrel and a daily oil production estimate of 1.78 million barrels. We have also adopted a Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024.
As a result, the Federal Government is proposing an aggregate expenditure of 27.5 trillion naira in 2024, of which 9.92 trillion naira is non-debt recurrent expenditure, 8.25 trillion naira is debt service, and 8.7 trillion naira is capital expenditure.
Nigeria is still determined to meet its debt obligations. Debt service is expected to be 45% of total revenue.
In 2024, the budget deficit is expected to be 9.18 trillion naira, or 3.88 percent of GDP. This is less than the 13.78 trillion naira deficit recorded in 2023, which is equivalent to 6.11 percent of GDP.
The deficit will be financed by 7.83 trillion naira in new borrowings, 298.49 billion naira in privatization proceeds, and a 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific purposes.
Our administration is still committed to broad-based and shared economic prosperity. We are currently reviewing social investment programs in order to improve their implementation and effectiveness.
The National Social Safety Net project, in particular, will be expanded to provide targeted cash transfers to poor and vulnerable households. Additionally, efforts will be made to transition existing beneficiaries into productive activities and employment.
Our tax and fiscal policies are currently being reviewed. Our goal is to raise the revenue-to-GDP ratio from less than 10% currently to 18% by the end of this Administration. The government will make additional efforts to reduce financial leakages by effectively implementing key public financial management reforms.
Given the limited resources available through the federal budget, Distinguished Senators and Honourable Members, we are also exploring Public Private Partnership arrangements to finance critical infrastructure.
As a result, we invite the private sector to join us in ensuring that our fiscal, trade, and monetary policies, as well as our development programs and projects, succeed in unlocking the latent potential of our people and other natural endowments in line with our national aspirations.
This Budget presentation would be incomplete without commending the 10th National Assembly’s patriotic resolve to collaborate with the Executive on our mission to renew hope and deliver on our promises to the Nigerian people. I assure you of the Executive’s strong commitment to maintaining and deepening the relationship with the National Assembly.
As you consider the 2024 Budget estimates, we are confident that the legislative review process will be carried out in order to maintain our desired return to a predictable January-December fiscal year.I am confident that you will act in the best interests of all Nigerians.
We must ensure that the 2024 Budget includes only projects and programs that provide equitable benefits. Furthermore, only projects and programs that are aligned with MDA sectoral mandates and capable of realizing our government’s vision should be included in the budget.
As a government, we are dedicated to bettering the lives of our citizens and keeping our promises to them. The 2024 Budget has the potential to improve performance, promote the development of Micro, Small, and Medium-sized Enterprises, improve security and public safety, and improve our people’s overall living conditions.
To summarize, I am confident that these budgetary allocations and directives will put Nigeria on a transformative path toward a sustainable and resilient energy future, promoting economic growth, job creation, and environmental preservation.
It is therefore with great pleasure that I present to this distinguished Joint Session of the National Assembly the Federal Government of Nigeria’s 2024 Budget Proposals, titled The Renewed Hope Budget.
I appreciate your time and consideration. May we all work together to chart a better and cleaner future for our great country.
May God bless the Federal Republic of Nigeria
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