The Nigerian Senate has passed the 2024 Appropriation Bill totaling N28.77 trillion after it was read for the third time on Saturday, December 30, 2023.
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 of 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 is for recurrent expenditure, N9.99 trillion is for capital expenditure, and N8.27 trillion is for debt service.
The Gross Domestic Product was set at 3.88%.
Senator Olamilekan Adeola, Chairman, of the 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 and 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 Gross Domestic Product growth rate of 3.88% and Budget Deficit 9.18 Trillion was also approved by the National Assembly.
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.
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.
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.
Speaking with newsmen after the budget passage, Chairman, Senate Committee on Media and Information, Senator Yemi Adaramodu said the National Assembly will ensure that all money appropriated will be throughly monitored.
“We are going to embark on oversight functions of all Ministries, Departments and Agencies immediately money is appropriated, and we will ensure all money allocated to each throughly monitored.” He said.
President Tinubu named the budget “Budget of Renewed Hope,” emphasizing its focus on achieving macroeconomic stability, poverty reduction, and increased access to social security, among other objectives.
This is the President’s first budget since he assumed office on May 29, 2023.