The federal government has projected revenue growth of N18.32 trillion in the 2024 fiscal year.
The government has also announced a conservative oil price benchmark of $77.96 per barrel, with projected daily production of 1.78mb/d, following a thorough examination of global oil market trends.
President Bola Tinubu made this known on Wednesday during the presentation of the N27.5 trillion 2024 appropriation bill tagged: ‘Budget of Renewed Hope,’ to the National Assembly.
He stated that a Naira to U.S. Dollar exchange rate of N750 had also been adopted for 2024.
With a revenue target of N18.32 trillion to fund the budget, there is a projected deficit at N9.18 trillion.
The president also stated that the government was projecting that the economy would grow by an impressive 3.76 per cent in the 2024 fiscal year.
Further details of the budget show that while recurrent expenditure will gulp N9.92 trillion, capital expenditure is N8.7 trillion.
Addressing the National Assembly, Tinubu said:“We expect the economy to grow by a minimum of 3.76 per cent, 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.
“Emphasising public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation, and other sectors. This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.
“As we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition. We must seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.
“Together, we will strive for Nigeria to emerge from COP28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship,” he said.
Later today, the President is expected to depart from Abuja to Dubai to attend the COP28 Climate Summit.
Giving a further breakdown of the 2024 Appropriation Bill, the President said: “Accordingly, an aggregate expenditure of 27.5 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.
“The budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023, which represented 6.11 percent of GDP. The deficit will be financed by new borrowings totaling 7.83 trillion naira, 298.49 billion naira from privatization proceeds, and 1.05 trillion naira drawn down on multilateral and bilateral loans secured for specific development projects.”
