Budget Office Flags Concerns: N27.5 Trillion Proposal Falls Short of Meeting Nigeria’s Economic Needs

Ben Akabueze, the Director-General of the Budget Office of the Federation, expressed his concern about the proposed N27.5 trillion budget for 2024, currently awaiting approval in the National Assembly, stating that it is considered “too small” to adequately address Nigeria’s economic needs. Despite this, he acknowledged the government’s commitment to fiscal responsibility by aligning expenses with available resources.

In an interview on Channels TV on Wednesday, Akabueze emphasized that the budget allocation is rather conservative compared to the economic obligations faced by the government. He highlighted the need to tailor expenditures to the available public revenues, acknowledging the budget’s limitations in addressing the country’s extensive needs.

Addressing the International Monetary Fund’s (IMF) projection of Nigeria’s economic growth rate, Akabueze expressed skepticism, stating that the IMF assessment does not entirely reflect the economic realities of the country. He asserted that the government’s projection, presented by President Tinubu during the budget presentation, is more reasonable than that of the international financial institution.

During the budget presentation, President Tinubu projected a 3.76% growth rate for the 2024 fiscal year and announced a revenue target of N18.32 trillion to fund the budget. In contrast, the IMF projected a lower growth rate of 3.1% for the same period. Akabueze defended the President’s ambitious projection, stating that IMF has consistently underestimated Nigeria’s actual growth in the past four years.

Highlighting key budget details, President Tinubu presented a comprehensive N27.5 trillion budget proposal to the National Assembly with an aggregate revenue projection of N18.32 trillion and a deficit of N9.18 trillion. The proposed budget allocates N8.7 trillion to capital expenditure and N18.51 trillion to recurrent expenditure. President Tinubu also forecasted a 3.76% economic growth and a moderation of inflation to 21.4% in 2024.

In response to the budget proposal, Akabueze emphasized that the 2024 budget estimates prioritize the well-being of the impoverished, with a specific focus on healthcare, security, education, and the overall economy. Despite the perceived limitations of the proposed budget, Akabueze stressed the government’s commitment to managing the economy responsibly and ensuring that resources are allocated efficiently to address the country’s pressing needs.

It is worth noting that the budget proposal is currently awaiting approval in the National Assembly, where further deliberations and adjustments may take place before final approval. InfoStride News will continue to provide updates on this matter as it unfolds.