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President Tinubu presents 2024 budget at National Assembly, says proposal will boost investments

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Being text of the 2024 budget presentation by President Bola Tinubu, to a joint session of the national assembly at the temporary chamber of the house of representatives, on November 29, 2023.

2024 BUDGET SPEECH:
Budget of Renewed Hope

Delivered By:

HIS EXCELLENCY, ASIWAJU BOLA AHMED TINUBU, GCFR
PRESIDENT, FEDERAL REPUBLIC OF NIGERIA
AT THE JOINT SESSION OF THE NATIONAL ASSEMBLY, ABUJA
WEDNESDAY, NOVEMBER 29, 2023

— The Vice President, Senator Kashim Ibrahim Shettima, GCON
— The Senate President, Distinguished Senator Godswill Akpabio, GCON
— The Right Honourable Speaker, Tajudeen Abbas
— APC National Chairman, His Excellency, Abdullahi Umar Ganduje
— Executive Governors here present
— Distinguished Leaders and Members of the National Assembly
— Secretary to the Government of the Federation
— Chief of Staff to the President
— Other Senior Government Officials here present
— Gentlemen of the Press
— Ladies and Gentlemen

  1. In furtherance of my sacred duties and obligations as President of the Federal Republic of Nigeria, it is my honour to be here today to present my administration’s 2024 Budget Proposal to this Joint Session of the 10th National Assembly. This moment is especially profound and significant to me because it is my first annual budgetary presentation to the National Assembly.
  2. Distinguished Senators and Honourable Members of the National Assembly, I commend your swift consideration and passage of the 2023 Supplementary Appropriation Bills and the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper. Your prompt action underscores your devotion to economic development and to the greater welfare of our people. It also highlights your desire to work in close collaboration with the Executive branch. We do not serve ourselves. We must always strive to work together to serve and benefit the people of our beloved country.
  3. I am confident that the National Assembly will continue to work closely with us to ensure that deliberations on the 2024 Budget are thorough but also concluded with reasonable dispatch. Our goal is for the Appropriation Act to come into effect on the 1st of January 2024.
  4. It is, by now, a matter of recorded history that my very first fiscal intervention as President of this great nation was to end the fuel subsidy regime which had proven to be so harmful to the overall health of our national economy. The second was to negotiate and subsequently present a supplementary budget to enable my government to fund the items needed to restore macro-economic stability and mitigate the harsh impact of subsidy removal.
  5. The third was to secure a second supplementary budget, this time to enable us to keep our promises to promote national security, invest in infrastructure and provide much needed support to the most vulnerable households in our society.
  6. In swearing-in my cabinet and reflecting on the unique challenges facing us, I invited the Ministers to imagine that we are attempting to draw water from a dry well. Today, I stand before you to present our Budget of Renewed Hope; a budget which will go further than ever before in cementing macro-economic stability, reducing the deficit, increasing capital spending and allocation to reflect the eight priority areas of this Administration. The budget we now present constitutes the foundation upon which we shall erect the future of this great nation.

PREVAILING ECONOMIC ENVIRONMENT

  1. Economic conditions remain challenging both abroad and at home. Despite lingering Post-Covid supply and production bottlenecks, armed conflict in various parts of the world and restrictive monetary policies in major economies, we expect global growth to hover around 3.0 percent in 2024. This relative low rate has significant implications for our economy due to our current reliance on importation.
  2. Distinguished Senators, Honourable Members: despite the global headwinds, the Nigerian economy has proven resilient, maintaining modest but positive growth over the past twelve months.
  3. 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.
  4. 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, The Honourable Minister of Budget and Economic Planning will provide full details of this proposal.

PERFORMANCE OF THE 2023 BUDGET

  1. Distinguished Senators and Honourable Members, an aggregate revenue of 11.045 trillion naira was projected to fund the 2023 Budget of 24.82 trillion naira with a deficit of about 6.1 percent of GDP.
  2. As of September 30, the Federal Government’s actual aggregate revenue inflow was 8.65 trillion naira, approximately 96 percent of the targeted 8.28 trillion naira.
  3. Despite the challenges, we continue to meet our obligations.

THEME AND PRIORITIES OF THE 2024 BUDGET

  1. Distinguished Senators, Honourable Members, permit me to highlight key issues relating to the budget proposals for the next fiscal year. The 2024 Appropriation has been themed the Budget of Renewed Hope. The proposed Budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.
  2. Defence and internal security are accorded top priority. The internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property and investments across the country.
  3. Human capital is the most critical resource for national development. Accordingly, the budget prioritizes human development with particular attention to children, the foundation of our nation.
  4. To improve the effectiveness of our budget performance, government will focus on ensuring value for money, greater transparency and accountability. In this regard, we will work more closely with development partners and the private sector.
  5. To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024.
  6. A stable macro-economic environment is important to catalyse private investment and accelerate economic growth. We have and shall continue to implement business and investment friendly measures for sustainable growth.
  7. We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent in 2024.
  8. In preparing the 2024 Budget, our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium term expenditure framework is Nigeria’s commitment to a greener future.
  9. Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation and other sectors. This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.
  10. As we approach COP 28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition.
  11. It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.
  12. Together, we will strive for Nigeria to emerge from COP 28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship.
  13. Distinguished members of the National Assembly, the revised 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sets out the parameters for the 2024 Budget.
  14. After a careful review of developments in the world oil market and domestic conditions, we have adopted a conservative oil price benchmark of 77.96 US Dollars per barrel and daily oil production estimate of 1.78 million barrels per day. We have also adopted a Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024.
  15. Accordingly, an aggregate expenditure of 27.5 trillion naira is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion naira while debt service is projected to be 8.25 trillion naira and capital expenditure is 8.7 trillion naira.
  16. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.
  17. Budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP.
  18. The deficit will be financed by new borrowings totalling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects.
  19. Our government remains committed to broad-based and shared economic prosperity. We are reviewing social investment programmes 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 made to graduate existing beneficiaries toward productive activities and employment.
  20. We are currently reviewing our tax and fiscal policies. Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this Administration. Government will make efforts to further contain financial leakages through effective implementation of key public financial management reforms.
  21. Distinguished Senators and Honourable Members, in view of the limited resources available through the federal budget, we are also exploring Public Private Partnership arrangements to finance critical infrastructure.
  22. We, therefore, invite the private sector to partner with us to ensure that our fiscal, trade and monetary policies, as well as our developmental programs and projects succeed in unlocking the latent potential of our people and other natural endowments, in line with our national aspirations.
  23. Distinguished Senators and Honourable Members, this Budget presentation would be incomplete without commending the patriotic resolve of the 10th National Assembly to collaborate with the Executive on our mission to renew hope and deliver on our promises to the Nigerian people. I assure you of the strong commitment of the Executive to sustain and deepen the relationship with the National Assembly.
  24. As you consider the 2024 Budget estimates, we trust that the legislative review process will be conducted with a view to sustaining our desired return to a predictable January-December fiscal year.
  25. I have no doubt that you will be guided by the interest of all Nigerians. We must ensure that only projects and programs with equitable benefits are allowed into the 2024 Budget. Additionally, only projects and programs which are in line with the sectoral mandates of MDAs and which are capable of realizing the vision of our Government should be included in the budget.
  26. As a Government, we are committed to improving the lot of our people and delivering on our promises to them. The 2024 Budget has the potential to boost performance, promote the development of Micro, Small and Medium-sized Enterprises, enhance security and public safety, and improve the general living conditions of our people.
  27. In closing, I am confident that these budgetary allocations and directives will set Nigeria on a transformative path towards a sustainable and resilient energy future, fostering economic growth, job creation, and environmental preservation.
  28. It is with great pleasure, therefore, that I lay before this distinguished Joint Session of the National Assembly, the 2024 Budget Proposals of the Federal Government of Nigeria, titled The Renewed Hope Budget.
  29. I thank you most sincerely for your attention. May we collectively chart the course towards a brighter and cleaner future for our great nation.
  30. May God bless the Federal Republic of Nigeria.

Business

FG invites heads of AEDC, IBEDC over poor power supply

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The federal government has invited heads of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC) over poor power supply in their service areas.

Adebayo Adelabu, minister of power, also invited Sule Abdulazeez, managing director of the Transmission Company of Nigeria (TCN), for the same reason.

Since the turn of the year, electricity supply to the nation’s capital and across the country has gone from bad to worse, with distribution companies citing gas constraints to generating companies (GenCos) as reason for the prolonged, agonising blackout.

In a statement, Bolaji Tunji, special adviser on strategic communications and media relations to the minister, said power supply should have improved because of the pressure mounted on GenCos to increase their output.

“These two DisCos have been summoned due to the worsening power supply situation in their regions despite improved supply from TCN,” Tunji said.

“So, we expect power supply to have improved across the country, unlike what we are experiencing in some regions presently.

“Findings revealed that some distribution companies were deliberately not taking up power supply from TCN, while some power lines were also damaged by vandals in Abuja, Benin, Port Harcourt and Ibadan regions.”

The aide said the minister has threatened non-performing DisCos nationwide with “outright licence revocation”.

Tunji said the minister also directed TCN to commence repair work on the damaged transmission lines.

The aide added that despite the shortage of gas, power generation has been ramped up to over 4000MW in recent days.

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Ghana’s electricity company cuts power supply to parliament over $1.8m debt

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The Electricity Company of Ghana (ECG) on Thursday disconnected the power supply to the country’s parliament over a debt of 23 million Ghanaian cedi, approximately $1.8 million.

The power outage disrupted the parliament’s deliberation on the state of the nation speech delivered by Ghanaian President Nana Akufo-Addo.

The blackout occurred when Abena Osei-Asare, the outgoing deputy minister for finance, was defending the president’s speech.

Videos showing the dark scene of the parliament in which some lawmakers were shouting “dumsor”, a Ghanaian word for “power outage”, have appeared on social media.

During the incident, some lawmakers and staff were stuck inside elevators.

ECG had earlier warned that it would disconnect the electricity supply to the parliament over the GH¢23 million debt.

Over the past few weeks, residents have been complaining about erratic power supply in the Gold Coast country.

Speaking about the incident, John Jinapor, a lawmaker and minority spokesperson on mines and energy, complained over the persistent load shedding being carried out by power companies.

The lawmaker attributed the power outages to the inability of the government to purchase fuel for the country’s thermal plants.

“Indeed, the load-shedding is getting worse by the day. The very day His Excellency the President was delivering the state of the nation address and boasting, up that very period, the utility companies were shedding the load,” the lawmaker said.

Later in the day, the power company restored the electricity supply to the parliament after a part of the debt was settled.

In Nigeria, the management of the Abuja Electricity Distribution Company (AEDC) recently issued a 10-day notice to 86 government ministries, departments, and agencies (MDAs) to pay up the N47.1 billion electricity debt they owe or risk disconnection.

The presidential villa was listed among the debtors.

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CBN revokes licences of 4,173 BDCs

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The Central Bank of Nigeria (CBN) has revoked the licences of 4,173 bureau de change (BDC) operators for failing to observe regulatory provisions.

In a statement signed by Sidi Ali, CBN’s acting director, corporate communications, on Friday, the apex bank said the BDCs failed to observe at least one of its regulatory provisions, such as payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

“The Central Bank of Nigeria (CBN), in exercise of the powers conferred on it under the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 (the Guidelines), has revoked the licenses of 4,173 Bureaux De Change Operators,” CBN said.

Other provisions not adhered to are rendition of returns, compliance with guidelines, directives and circulars of the CBN, especially anti-money laundering (AML), countering the financing of terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.

The apex bank said it is revising the regulatory and supervisory guidelines for BDC operations in Nigeria.

“Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective,” CBN said.

The financial regulator advised the public to take note.

Some of the affected BDCs are;

Mountaintop BDC LTD
Movement BDC
Pointless FOREX BDC LTD
Protected BDC LTD
Reading BDC LTD
Roundtable BDC LTD
Shares OF Time BDC LTD
Stop Over BDC LTD
Surging BDC LTD
Valid BDC LTD
Unical BDC LTD
Turnover BDC LTD
Couple BDC LTD
Happy Ends BDC LTD
Village WAY BDC LTD
Welcome BDC LTD
Oyinbo BDC LTD
Oyoyo BDC LTD
Lamshade BDC LTD
Internal Curry BDC LTD
Give And Collect BDC LTD
Give and Take BDC LTD


The full list of the affected BDCs can be found here.

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