The National Assembly
has passed the budget for the 2024 fiscal year.
The passed budget by the
Senate and House of Representatives was raised from N27.5 trillion
presented by President Bola Tinubu on Wednesday, November 29th to N28.7
trillion.
This shows an increase of over N1.2 trillion.
The Senate also increased the exchange rate from N750 to N800 per dollar while the 1.78mbpd daily oil production, US$77.96 oil benchmark price and GDP growth rate of 3.88% were approved as proposed by the executive arm of government.
The passage of the budget was a sequel to the consideration
of the report of the Senate Committee on Appropriation presented by the
chairman, Olamilekan Adeola, APC, Ogun West.
Recall that President Bola Tinubu on Wednesday 29th November
2023, presented the budget to the joint session of the National Assembly which
he tagged “budget of renewed hope.”
However, the Senate, on Friday 1st December, 2023, passed
the N27.5 trillion 2023 budget for second reading.
The passage of the appropriation bill for the second reading
followed a substantial debate on its general principles which had commenced on
Thursday 30th November, 2023. Both
chambers immediately suspended plenary, to dedicate their time to the budget
defence sessions at committee levels.
The budget which is Tinubu’s first budget as the President
of Nigeria was based on a non-debt recurrent expenditure of 9.92 trillion naira
while debt service was projected to be 8.25 trillion naira and capital
expenditure is 8.7 trillion naira.
Breakdown of the
approved 2024 Budget
Aggregate – 28,777,404,73, 861
Statutory transfer – N1, 742,786,788,150
Debt service – N8,270,960,606, 831
Recurrent (non-debt) expenditure – N8,768,513,380,852
Contribution to the development of the Capital expenditure –
N9,995,143,298,28
Adeola urged the executive to ensure compliance and provide
adequate funds to the Ministries, Departments and Agencies (MDAs)
The Senate, thereafter, dissolved into the Committee of
Supply, which considered and passed the budget.
Meanwhile, the Senate also approved the securitisation of
outstanding 7. 388trn Ways and Means following the request of President Tinubu
which aims to realise the reduction of debt service cost and to extend the
repayment period of the existing loans.
The Ways and Means provision allows the government to borrow
from the Central Bank in the event that it requires short-term or emergency
financing to support delayed government projected cash receipts of fiscal
shortfalls.
According to the President’s letter to the Senate, the
interest rate for the securitized Ways and Means advances has been reduced to
9% per annum, compared to the MPR of +3%.
The parameters of the securitisation of Ways and Means
advances as gazetted by the Debt Management Office (DMO) entail the Federal
Government issuing debt securities with a 40-year tenor to the CBN, with a 5%
interest rate and a 3-year moratorium on principal repayments.
More Details Later…
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