Senate passes N28.77tn 2024 budget

The Nigerian Senate has passed the 2024 Appropriation bill totalling N28.77 trillion after it was read for the third time.

The Bill which was passed by the Senate after also considering and approving the report of the joint committee on Appropriation on Saturday indicates an increase by over N1.2 trillion from the N27.5 trillion appropriation which President Bola Tinubu laid before the joint sitting of the National Assembly on November 29.

In summary, the Senate approved the Bill for an Act to authorize the issuance from the Consolidated Revenue Fund an aggregate expenditure of N28.777, 404, 073, 861 which includes N1.7 trillion for statutory transfers. N8.76 trillion for recurrent expenditure, N9.99 trillion for capital expenditure, and N8.27 trillion for debt service. The Gross Domestic Product was set at 3.88%.

Olamilekan Adeola, Chairman, committee on Appropriation while presenting the report of the Committee informed that most of the sub committees during budget defence complained of inadequate funds and decline in budgetary allocation to Ministries, Departments and Agencies under their purview in addition to the rising costs in the polity amd the continous devalue of naira.

He also disclosed that the executive forwarded request for additional funding and some items of Expenditure to the committee which were not included in the bill the President had submitted.

In order to accommodate the request, he said the committee made adjustments on Foreign exchange differential, Government Owned Enteeprises (GOE) revenue increased, GOE personnel reduction , Service wide vote wage adjustment , and a reduction from service wide.

In preparing details of the 2024 Appropriation Bill, the Committee adopted the Medium Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) approved by the National Assembly which includes basic assumptions and parameters for the 2024 fiscal year

Crude oil price was pegged at $77.96 per barrel, crude oil production at 1.78 million barrels per day. The NASS approved an increase in the exchange rate to $ 800/$1 as against N750/ $1 rate proposed by the executive.

A GDP Growth Rate of 3.88% and Budget Deficit 9.18 Trillion was also approved by the National Assembly.

Not enough time to scrutinize budget proposal

The 2024 Appropriation bill was presented late to the National Assembly which is against the Fiscal Responsibility Act that requires the Bill to be presented not later than three months before the next funacial year.

Despite the late submission, the red and green chambers of the National Assembly was determined to maintain the January-December budget cycle

After it’s presentation by the President, the Senate debated the general principles of the bill on Thursday, 30, November; and Friday 1 December, 2023. respectively. The Bill was read the second time on Friday, 1st December, 2023 and consequently referred to the Committee on Appropriations for further legislative action.

The National Assmebly assigned deadlines to sub-committees to submit budget defence report.

The report of the Appropriation Committee on 2024 Appropriation Bill, however notes that the ate submission pit intense pressure on the processing of the bill and did not allow for thorough scrutiny of the budget.

The report recommended that the executives should henceforth comply with the provision of the Fiscal Responsibility Act.

Security, agriculture, works, others get highest allocation

The Ministry of Defence got N1.3 trillion as recurrent expenditure and N339.2 billion for capital expenditure. Police Affairs got 869.1 billion as recurrent and 100.5 billion as capital expenditure;
Education got 857.1 billion as recurrent, and N417.5 billion as capital expenditure.

In addition, Health and Social Welfare got N667.5 billion as recurrent and 417.5 billion as capital; Agriculture and Food Security was allocted 857.1 billion as capital and N110 billion as recurrent expenditure

Ministry of Works got N892.4 billion as capital expenditure and 4.3 trillion as recurrent; Finance got 463 billion as capital expenditure, among other allocations.