The budget christened “Budget of Renewed Hope” contains national revenue estimated at N18.32 trillion with a deficit of N9.18 trillion. Moreover, the government projects a revenue growth of 3.76% in the 2024 fiscal year. While presenting the budget on Wednesday, the President noted that the purpose of the bill is to ensure macroeconomic stability, increase revenue, reduce deficit as well and increase capital expenditure and allocation to reflect the key priority areas of his administration. Tinubu also emphasised that his administration would promote a public-private partnership model to drive economic stability.
He added that his administration would make provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation and other sectors. A move he claimed is critical to diversify the economy as well as drive infrastructural projects in the country.
“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.”
In addition, Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun, speaking on the budget, said the privatisation effort will drive macroeconomic growth as well as allow investors to participate optimally in the economy. He had said, “There is privatisation in the budget. That is the direction of travel to create a stable macro-economic environment in which investors can come in and the government is yielding grounds to them and allowing them to come in and invest and provide goods and services to Nigerians.” With a debt service-to-revenue ratio of 73.5% a public debt totalled N87.38 trillion, Nigeria still struggle with revenue generation to fund its capital and recurrent expenditures. Currently, the country’s deficit to GDP ratio stands at 6.1%.
However, President Tinubu projects a reduction to 3.9% in 2024. In the past, there has been a public outcry against any move from the government to offload some of the public assets to the private sector to get more revenue to fund its expenditures. However, with a tightening in revenue growth and a huge public debt, the sales of the assets will provide the government needed to meet its fiscal obligations.
Accordingly, the President said his administration targets a revenue growth of N18.32 trillion to fund the 2024 budget.
He said, “The budget deficit is projected at N9.18 trillion in 2024 or 3.88% of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which represented 6.11% of GDP. The deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatisation proceeds, and N1.05 trillion drawn down on multilateral and bilateral loans secured for specific development projects.”
