FG Aims for Sharp Inflation Drop: 5.93% Reduction Targeted in 2024 Budget

The federal government has revealed its projection for the inflationary rate in the 2024 fiscal year, aiming for a rate of 21.4%, indicating a significant decline from the current rate of 27.33%. President Bola Tinubu made this announcement while presenting the 2024 appropriation bill to the National Assembly, outlining key objectives for the budget.

President Tinubu emphasized that the proposed budget is designed to achieve several economic goals, including job-rich growth, macro-economic stability, an improved investment environment, enhanced human capital development, poverty reduction, and increased access to social security.

Nigeria’s current headline inflation rate, reported by the Nigeria Bureau of Statistics, is at 27.33%, marking the highest level in almost two decades since 2005. KPMG, a global financial advisory firm, has also projected that the inflation rate in Nigeria could reach 30% by December 2023.

Addressing the inflationary challenges, President Tinubu highlighted the government’s commitment to collaborative efforts between fiscal and monetary policy instruments. He explained that this coordination, along with collaboration with sub-national governments, aims to tackle the structural factors driving inflation in Nigeria.

President Tinubu stated:

“Inflation has trended upward due to weak global conditions. To contain the rising domestic prices, we will ensure effective coordination of fiscal and monetary policy measures and collaborate with sub-national governments to address structural factors driving inflation in Nigeria.
“The Budget proposal meets our goal of completing critical infrastructure projects, which will help address structural problems in the economy by lowering the costs of doing business for companies and the cost of living for the average person.
“A stable macro-economic environment is important to catalyze private investment and accelerate economic growth. We have and shall continue to implement business and investment-friendly measures for sustainable growth.
“We expect the economy to grow by a minimum of 3.76%, above the forecasted world average. Inflation is expected to moderate to 21.4% in 2024.”

President Tinubu also highlighted the government’s focus on investment programs to stimulate economic growth and address financial leakages. He mentioned the expansion of the National Social Safety Net project to provide targeted cash transfers to poor and vulnerable households.

“Our government remains committed to broad-based and shared economic prosperity. We are reviewing social investment programs to enhance their implementation and effectiveness.
“In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households. In addition, efforts will be made to graduate existing beneficiaries toward productive activities and employment.”

This comprehensive approach outlined by President Tinubu underscores the government’s determination to address economic challenges, stimulate growth, and prioritize social welfare programs to uplift vulnerable segments of the population. As Nigeria navigates the complexities of its economic landscape, the proposed budget for 2024 reflects a strategic vision aimed at achieving sustainable development and inclusive prosperity.