The Federal Government has put forward a budget proposal of N26.01 trillion for the fiscal year 2024, setting an oil price benchmark of $73.96 and an interest rate of 21 percent.
This announcement was made by the Minister of Budget and Economic Planning, Atiku Bagudu, at the end of the Federal Executive Council meeting held in Abuja on Monday.
Minister Bagudu explained the government’s budgetary focus, “The budget is expected to consolidate on the various economic reforms initiated by the present administration aimed at improving the standard of living of Nigerians and attracting investors.”
He also discussed the government’s assumption for the budget, stating that it is based on various diplomatic engagements, “The assumptions include oil price benchmark, which I said for 2024 we are assuming 73.96, oil production of 1.78 million barrels a day, exchange rate of $700, then inflation of 21 percent, and GDP growth rate of 3.76 percent.”
Minister Bagudu noted the encouraging support from investors, saying, “We believe that these inflows will help us to clear the backlog, and the exchange rate will begin to reflect a stronger value than the current weakness.”
Regarding the fiscal responsibility and the presentation of the Medium Term Expenditure Framework, he emphasized the government’s commitment to fiscal discipline, “The council members acknowledge the medium-term expenditure framework, and it is agreed that we can go ahead to the next step of consultation and presentation to the National Assembly.”
Wale Edun, the Minister of Finance and Coordinating Minister of Economy also reported on the government’s progress in securing financing from international organizations.
He mentioned the approval of a $1.5 billion financing application from the World Bank, specifically from the International Development Association, which offers low-interest or virtually interest-free loans.
