Nigeria, Africa’s largest economy, has announced a proposed budget of N26 trillion ($34 billion) for the 2024 fiscal year, a 19% increase from the current budget of N21.8 trillion.
The budget, which was revealed by the Federal Executive Council (FEC) on Monday, aims to spur economic growth and improve the living standards of Nigerians.
The budget is based on an assumed oil price of $73.96 per barrel and an exchange rate of 700 naira per dollar. Nigeria, which relies heavily on oil revenues, will target production of 1.78 million barrels daily in 2024.
The budget also allocates 8.25 trillion naira ($10.8 billion) for debt servicing and 7.78 trillion naira for salaries and pensions for civil servants.
The Nigerian economy is expected to grow at a rate of 3.76% next year, with inflation currently at 26.72%, moderating to 21% next year.
The budget proposal comes amid a series of economic reforms initiated by the administration of President Bola Tinubu, who took office in May 2023 after defeating incumbent Muhammadu Buhari in a historic election.
Tinubu, a former governor of Lagos state and a leader of the ruling All Progressives Congress (APC) party, has pledged to diversify the economy, fight corruption, and create jobs for the youth.
He has also vowed to work closely with the National Assembly, the bicameral legislature to ensure the timely passage and implementation of the budget.
Some analysts and stakeholders have welcomed the budget proposal and see it as a bold and visionary plan to transform Nigeria’s economy and society.
However, some critics have raised concerns about the feasibility and sustainability of the budget, especially in light of the volatile oil market, the high debt burden, and the security challenges facing the country.
Nigeria has been grappling with a resurgence of violence by armed groups such as Boko Haram, Islamic State West Africa Province (ISWAP), and bandits in various parts of the country.
The government has also faced protests and demands for secession by some ethnic and regional groups, such as the Indigenous People of Biafra (IPOB) in the southeast and the Yoruba Nation agitators in the southwest.
The government has said it is committed to addressing these issues through dialogue, reconciliation, and development.
The government has also expressed its confidence that Nigeria will overcome its current challenges and achieve its potential as a prosperous and peaceful nation.
Source: Business Insider Africa
