The Federal Executive Council (FEC) has unveiled a proposed budget of N26.01 trillion for the 2024 fiscal year.
The announcement was made on Monday by the Minister of Budget and Planning, Atiku Bagudu, after a FEC meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
The government aims to have the 2024 budget passed and signed into law before 31 December.
The proposal includes the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP), as required by the Fiscal Responsibility Act.
Key assumptions in the proposed budget include a reference price for crude oil set at $73.96, an exchange rate of N700/$, oil production of 1.78 million barrels per day, debt service of N8.25 trillion, an inflation rate of 21 percent, and a GDP growth rate of 3.76 percent.
The estimated total expenditure for the 2024 budget is N26.01 trillion, which encompasses statutory transfers of N1.3 trillion, non-debt recurrent expenditure of N10.26 trillion, debt service estimated at N8.25 trillion, and N7.78 trillion allocated for personnel and pension costs.
The Minister of Finance and Coordinating Minister of Economy, Wale Edun, also announced that FEC approved an application for $1.5 billion in financing from the World Bank's International Development Association (IDA).
This financing is seen as relatively cheap and will be dispersed quickly, helping Nigeria navigate a challenging global economic environment with high interest rates.
Additionally, the FEC approved an $80 million financing plan from the African Development Bank (AfDB) for the Ekiti Knowledge Zone Project (EKZ), aimed at supporting young people's participation in the knowledge economy and the technology sector.
The FEC also approved the continuation of road infrastructure projects inherited from previous administrations, totaling 18,897 kilometers of roads and bridges. New proposals for 12,000 kilometers of roads and 24 bridges were introduced, with a directive to find funding strategies.
Furthermore, the FEC approved a shift in meeting days, with meetings now scheduled for Mondays instead of the previous Wednesdays.
