In response to growing concerns over the impact of foreign exchange rates on the 2024 national budget, the House of Representatives has initiated a comprehensive assessment to ensure a balanced budget and enhance the standard of living for Nigerians. The decision came following the adoption of a motion raised by Honourable Kafilat Ogbara, emphasizing the need to evaluate the implications of current exchange rates on budget implementation.
Key committees including national planning and economic development, appropriation, and finance have been tasked with evaluating various aspects of the foreign exchange situation. Their primary objectives include determining the method of alignment between current exchange rates and the approved national budget, assessing the prevailing exchange rates’ impact on the local currency’s value, and analyzing how fluctuations affect purchasing power and overall budgetary effectiveness for the year 2024.
Furthermore, the assessment will involve a thorough examination of anticipated government revenue from diverse sources such as taxes and other income streams. This analysis aims to provide insights into the financial resources available to meet budgetary demands effectively.
The evaluation process will also encompass a review of outlined government spending plans across different sectors. Adjustments will be considered where necessary to ensure that the budget remains realistic and achievable within the economic context, considering priorities and essential areas.
One of the focal points of concern is the significant disparity between the foreign exchange benchmark set by the Federal Government for the 2024 budget (N800 to a dollar) and the current exchange rate, which stands at approximately N1,500 to a dollar. This widening gap has prompted heightened scrutiny and calls for proactive measures to address potential budgetary challenges and economic implications.
Source: Channels TV