The federal government says it will spend N8.25 trillion on
debt servicing in the N27 trillion 2024 budget, projecting that the economy
will grow by 3.76 percent.
President Bola Tinubu disclosed this while presenting the
proposed budget for 2024 to the national assembly on Wednesday.
The president said the budget will cement macroeconomic
stability, reduce the deficit, and increase capital spending and allocation to
reflect the eight priority areas of this administration.
Tinubu said a stable macroeconomic environment is important
to catalyse private investment and accelerate economic growth.
“We have and shall continue to implement business and
investment friendly measures for sustainable growth,” he said.
“We expect 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.
“In preparing the 2024 Budget, our primary objective has
been to sustain our robust foundation for sustainable economic development. A
critical focus of this budget and the medium term expenditure framework is
Nigeria’s commitment to a greener future.”
Last week, the senate and the house of representatives
approved the 2024-2026 medium-term expenditure framework (MTEF) and fiscal
strategy paper (FSP) — parameters on which the 2024 budget will be framed.
Speaking on the key parameters of the 2024 budget, Tinubu
said the government has adopted “a conservative oil price benchmark of 96 US
Dollars” per barrel and a daily oil production estimate of 1.78 million barrels
per day.
This, according to the president, followed a careful review
of developments in the global oil market and domestic conditions.
“We have also adopted a Naira to US Dollar exchange rate of
750 naira per US Dollar for 2024,” he said.
“Accordingly, an
aggregate expenditure of 5 trillion naira is proposed for the Federal
Government in 2024, of which the non-debt recurrent expenditure is 9.92
trillion naira while debt service is projected to be 8.25 trillion naira and
capital expenditure is 8.7 trillion naira.
“Nigeria remains committed to meeting its debt obligations.
Projected debt service is 45% of the expected total revenue.”
On November 27, the federal executive council (FEC) approved
N27 trillion proposed for the 2024 budget.
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