FEC okays N27.5tn for 2024 appropriation budget

The Federal Executive Council (FEC) has approved the sum of N27.5 trillion in aggregate expenditure for the 2024 Appropriation Bill.

The approval came during Monday’s council meeting presided over by President Bola Tinubu at the presidential villa in Abuja.

The new budget is N1.5 trillion higher than the initial N26 trillion that was approved by the council, followed by the passage of the Medium Term Framework and Fiscal (MTEF) policy document by the National Assembly

The Minister of Budget and Economic Planning, Alhaji Atiku Bagudu, disclosed this to correspondents at the end of the meeting, saying that the government is targeting N18 trillion for the year.

He said that the exchange rate has been calculated at N700 to a dollar and a crude oil benchmark of $73.

The minister said: “To improve revenue, the council further reviewed the MTEF, with an exchange rate of N750 to a dollar and a crude oil benchmark of $77. This will significantly improve revenue.”

The council also approved a revised Medium-Term Economic Framework and Fiscal Policy document, which will be presented to the National Assembly alongside the 2024 Appropriation Bill.

The minister said details of the budget will be released when the president presents it to the National Assembly in a few days.

While noting that the MTEF and fiscal policy frameworks that have been passed by the National Assembly were further reviewed, he said, Today, among other issues, the Federal Executive Council considered the 2024 Appropriation Bill. You may recall that the Medium Term Expenditure Framework was earlier approved and transmitted to the National Assembly, which the assembly graciously approved, and that approved Medium Term Expenditure has an exchange rate of N700 to $1 and, equally, the benchmark crude oil price of $73.96 cent.

“However, in Mr President’s determination to find more money to fund our priorities, today the Federal Executive Council further revised the Medium Term Expenditure Framework and Fiscal Policy Framework, and two of the important decisions were to use an exchange rate of N750 to $1 and also a benchmark crude oil reference price of $77.96, meaning $4 more than the earlier approval.

“This will significantly increase the government revenue that Mr President intends to use to further support the ministries, departments, and agencies in the execution of the eight priority areas, particularly health, education, infrastructure, security, and other developmental areas.

“Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President. The bill has an aggregate expenditure of N27,500,000,000,000, which is an increase of over N1.5 trillion from the previously estimated, using the old reference prices.

“The forecast revenue is now N18.32 trillion, which is higher than the 2023 revenues, including those provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly.”

Also speaking at the press briefing, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, harped on the briefing provided to FEC by the Presidential Fiscal Policy and Tax Reform Committee, headed by Taiwo Oyedele.

The committee provided updates on its activities after 90 days of operation.

Lauding the committee’s effort, Edun noted that its report was well received by the President.

He said: “There was a briefing by the Fiscal Policy and Tax Reform Committee; essentially, they’ve been working for roughly 90 days; they’ve been working very well and very effectively, such that they are in a position to have even impacted the economy by coming up with initial reforms as well as signposting the way forward in terms of very important targets.

“So in a nutshell, the policy on VAT removal on diesel is from them; they are looking to help boost the fiscal situation of the government by increasing revenue, particularly tax revenue, through digitalization, additional efficiency, and rationalisation of the range of taxes that we have at the moment.

“They are looking to increase the ratio of tax revenue to GDP to 18%, which is the average for Africa; so many countries are above that level. It is actually about double where we are now, and within a matter of a few years, their target is to reach 18%. Other economic measures, in the short term, are being contemplated, and their report was well received by Mr. President and indeed, the whole Federal Executive Council.”

In his remarks, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, said the council approved Nigeria’s draft human rights reports for further transmission to the United Nations Commission on Human Rights.

Fagbemi stated that the approval is for the fourth cycle of the United Nations Universal Periodic Review and in fulfilment of the practice of reporting human rights records.

He explained: “The memo I presented was for approval of the draft national report for the fourth cycle of the United Nations Universal Periodic Review. As you all know, Nigeria is a member of many international jurisdictions, including the United Nations, and at the United Nations, there’s a practice of reporting your human rights records, among others, periodically. We reported in 2009, in 2013, and in 2018.

“So since 2018, we have not made any reports, and there’ll be a meeting where all these reports will be considered in February 2024. We believe that it’s just right that we forward this report ahead of that meeting in February 2024.

“After engaging critical stakeholders in the country in each of the six geopolitical zones and including the three tiers of government—the national, state, and local government levels—we compiled the report, which we are sending to the United Nations on human rights universal periodic review for consideration.

“Before we can do that, we have to bring it to the Executive Council. So we got approval to forward the report to the United Nations.”

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