The Nigerian 2024 national budget has been subject of controversy since it was presented by President Tinubu to the National Assembly in a joint session on November 29, 2023. The budget, which was presented more than two months behind schedule, was met with the initial controversy over its full contents not being made available to the members of the National Assembly who were supposed to pass it. Then there was the added controversy that the Presidency wanted the budget passed soon after its presentation. This meant that the National Assembly, which received the budget hurriedly, without adequate information, and in the absence of full consideration, passed the budget on December 30, 2023, with the President unprecedentedly signing the 2024 Appropriation Bill into law on January 1, 2024.
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The 2024 Appropriation Act was supposed to be President Tinubu’s first full-year budget as President and was to represent a statement about his administration’s fiscal direction and outlook. Unfortunately, the circumstances of the passage of the Appropriation Act, the uncertainty around its actual contents, and the absence of any clear indication of the budget direction have created serious doubts about the administration’s ability to effectively manage the economy.
Since the budget was passed, the economy has nosedived, and the several indices and indicators contained in the budget appear to have been impacted. Predicated on the naira exchange rate of N750 per $1, production volume of 1.78 million barrels of crude oil at $77.96 per barrel, and a Gross Domestic Product (GDP) growth forecast of 3.76 percent, it is unclear how the 2024 budget will accomplish its set goals. The naira value has dipped unprecedentedly, exchanging at more than double the budget parameter. The projected rate of inflation of 21.4 percent in the budget now seems like a mirage, with the inflation rate rising up to 29.9 percent in January 2024. The interest rate stands at 18.75 percent, as announced by the Monetary Policy Committee of the Central Bank of Nigeria in July 2023.
Citizens are waiting to see how the Nigerian government will intervene to address this downward economic trajectory, which has occasioned a significant adverse impact on the cost and standard of living in the country.”
Response by President Bola Tinubu on budget padding:
President Bola Tinubu has dismissed claims that the Senate added more than N3.7 trillion to the 2024 budget, asserting that the legislative body’s reputation remains unblemished.
Speaking from the State House in Abuja on Thursday, the President stated that the individuals making these accusations lack understanding of the arithmetic involved in the 2024 budget.
He lauded the Senate for expediting the budget, and he commended the lawmakers for their work up to this point.
“I know the arithmetic of the budget and the numbers that I brought to the National Assembly, and I know what numbers came back. I appreciate all of you for the expeditious handling of the budget. Thank you very much.
“Those who are talking about malicious embellishment in the budget; they did not understand the arithmetic and did not refer to the baseline of what I brought. But your integrity is intact,” he said.
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Furthermore, the president noted that the country’s revenue generation has increased under his leadership.
He mentioned that the nation is nearing a turning point in its economic struggles, highlighting that revenue has increased.
He emphasised the importance of expenditure control and better management.
“I am grateful for what you have been doing. The natural challenge we are facing will be over. With the current economic difficulty, we are about to turn the corner.
“Our revenue has improved. All we have to do is control expenditure and manage ourselves better.
“Light is at the end of the tunnel, and Nigerians will soon smile again,” he added.
