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2024 Budget: FG Aims For 3.76% Economic Growth, N9.18tn Deficit



Bola Tinubu

President Bola Tinubu presented the 2024 budget proposal, naming it the ‘Budget of Renewed Hope,’ with a strong emphasis on economic growth, national security, local job creation, and poverty reduction, News About Nigeria reports.

Addressing a joint session of the National Assembly on Wednesday, President Tinubu outlined key objectives and projections.

President Tinubu expressed optimism, targeting a robust economic growth of 3.76% for the fiscal year 2024.

He emphasised Nigeria’s commitment to a greener future and anticipated economic expansion above the global average.

In addressing economic challenges, Tinubu forecasted a moderation of inflation to 21.4% in 2024, outlining measures to stabilise the macroeconomic environment.

“A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future…We expect the economy to grow by a minimum of 3.76 per cent, above the forecasted world average. Inflation is expected to moderate to 21.4 per cent in 2024,” Tinubu said

National security emerged as a top priority, with the president pledging to overhaul the internal security architecture.

The objective is to enhance law enforcement capabilities to safeguard lives, property, and investments across the nation.

The proposed budget places a significant focus on human capital development, especially children.

Tinubu highlighted the critical role of human capital in national development and pledged to implement sustainable models for funding tertiary education, including the launch of a Student Loan Scheme by January 2024.

To improve budget performance, the government aims for greater transparency, accountability, and value for money.

The 2024 Appropriation Bill outlines an aggregate expenditure of N27.5 trillion for the Federal Government.

Key allocations include N9.92 trillion for non-debt recurrent expenditure, N8.25 trillion for debt service, and N8.7 trillion for capital expenditure.

Despite the ambitious spending plan, President Tinubu expressed Nigeria’s commitment to meeting its debt obligations.

The budget deficit is projected at N9.18 trillion, representing 3.88% of GDP. This marks a reduction from the 2023 deficit of N13.78 trillion (6.11% of GDP).

The deficit will be financed through a combination of new borrowings, privatisation proceeds, and drawdowns on multilateral and bilateral loans.

President Tinubu concluded by assuring citizens of the government’s dedication to implementing business and investment-friendly measures to stimulate sustainable economic growth.