The Federal Executive Council (FEC), on Monday, proposed N26.01 trillion for the 2024 Budget, The Nation reports.
The Nation said that a bill to that effect will shortly be sent to the National Assembly.
Minister of Budget and Economic Planning, Alhaji Atiku Bagudu, told reporters after the FEC meeting that the projection is based on the crude price of $73.96 and exchange rate of $700.
The Administration, the minister added, will maintain the January-December budget implementation cycle.
Bagudu said: “The aggregate expenditure is estimated at N26.01 trillion for the 2024 budget.
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“It includes statutory transfers of N1.3 trillion, non-debt recurrent expenditure of N10.26 trillion, debt service estimated at N8.25 trillion, as well as N7.78 trillion being provided for personnel and pension cost.”
Nigeria’s total budgetary provision for 2023 was N20.51 trillion.
Of this amount, the country was expected to generate N9.73 trillion as revenue, leaving a budget deficit of N10.78 trillion.
Capital Expenditure provision was N5.35 trillion, while recurrent expenditure was put at N8.27 trillion.
The Federal Government set aside N6.31 trillion for debt servicing, but the amount has inched higher to over 90 per cent of the revenue.
The Federal Government’s budgetary provision was benchmarked on daily crude output of 1.6 million barrels per day at $70 per barrel.
The exchange rate was projected at N435 to $1.
Yesterday, FEC approved the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP).
Bagudu explained: “The MTEF is a requirement of the Fiscal Responsibility Act.
“It’s always a three-year document, so this Fiscal Responsibility Act is for 2024 to 2026.
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“On the $700 reference price, we are optimistic that investment flows will continue to come in.
“We believe that these inflows will help us to clear the backlog and the exchange rate will begin to reflect a stronger value than the current weakness.
“The assumptions include oil price benchmark. For 2024, we are assuming 73.96; oil production of 1.78 million barrels a day, exchange rate of $700, inflation of 21 per cent and GDP growth rate of 3.76 per cent.”
Bagudu said debt service increased because N22.7 trillion Ways and Means was securitised, meaning it became a Federal Government debt at nine per cent.
“So, that is easily about N2.1 trillion debt service,” he said, adding that there will be a supplementary budget to address issues as they arise, such as security matters.
The minister said President Bola Ahmed Tinubu was already engaging with the National Assembly on the proposed budget.
“We believe that this budget will be presented in good time, passed and signed before 31st of December, 2023,” he said.
FEC also approved the setting up of the Presidential Council on Industrial Revitalisation Roadmap, which will be headed by President Tinubu.
Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the Council will comprise 10 sub-committees.
According to the minister, the sub-committees will review and harmonise policies within different ministries.
Uzoka-Anite said: “We have a lot of policies, frameworks and guidelines that should help to revitalise the industries within different ministries and agencies.
“We’re to collaborate and come up with a single roadmap towards developing the full industrial revival of the economy in line with the eight-point agenda of Mr. President.
“At the end, we expect to see a boost in investment coming into the different industrial sectors.
“We expect to see a boost in job creation and employment and a general increase in our indices, especially our GDP growth rates.”
The sub-committees are on consumer credit, commodity exchange, heavy industries and steel development, trade facilitation and ease of doing business.
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Others are on licensing and certification of artisans, trade facilitation and realisation, mining and solid minerals, oil and gas and creative industries.
Uzoka-Anite said the sub-committees on defence, industries and pharmaceutical were stepped down.
FEC also approved the setting up of a committee to review the free trade zones.
Uzoka-Anite said: “The committee is to look at the setup, incentives, the laws and the reforms that will help to stimulate and catalyze the economic benefits of the free trade zones and special economic zones.”