President Bola Tinubu on Wednesday presented a budget of N27.5 trillion for 2024 to the National Assembly for approval.
In 2023, former President Muhammadu Buhari presented N20.51 trillion budget which was a record at the time. The 2024 budget is 26% higher than that presented before the lawmakers by Buhari in 2022 for the year 2023.
1. Buhari’s N20.51 trillion 2023 expenditure comprises: statutory transfers of N744.11 billion; non-debt recurrent costs of N8.27 trillion; personnel costs of N4.99 trillion; pensions, gratuities and retirees’ benefits of N854.8 billion; overheads of N1.11 trillion; capital expenditure of N5.35 trillion, including the capital component of statutory transfers; debt service of N6.31 trillion; and sinking fund of N247.73 billion to retire certain maturing bonds.
Tinubu’s 2024 budget, however, has N9.92 trillion as non-debt recurrent expenditure and N8.7 trillion capital expenditure, while N8.25 trillion was earmarked for debt service.
2. The budget deficit is projected at N9.18 trillion in 2024 or 3.88 per cent of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which represented 6.11 per cent of GDP.
3. Tinubu said the deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatization proceeds and N1.05 trillion drawdown on multilateral and bilateral loans secured for specific development projects. On his part, Buhari also said the budget deficit would be financed mainly through borrowings. He said this would include new borrowings totalling N8.80 trillion, N206.18 billion from privatisation proceeds and N1.77 trillion drawdowns on bilateral/multilateral loans secured for specific development projects/programmes.
4. Buhari’s 2023 budget had oil price benchmark of 70 US Dollars per barrel; daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); exchange rate of N435.57 per US Dollar.
Tinubu’s 2024 budget put oil price benchmark at 77.96 US Dollars per barrel and daily oil production estimate of 1.78 million barrels per day. His administration also adopted a Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024.
5. Buhari projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate for 2023.
Tinubu’s administration expects 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.