The Federal Government is projecting the sum of N26 trillion as estimates for the 2024 appropriation budget with the hope of submitting the proposal to the national assembly before December 31, 2023.
The Minister of Planning and Budget, Atiku Bagudu, disclosed this while briefing correspondents at the end of the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu, at the presidential villa in Abuja on Wednesday.
Joined by his colleagues from Ministry of Information, Mohammed Idris; Minister of Finance and Coordinating Minister of Economy, Wale Edun; Works and Housing Dave Umahi; Industry, Trade and Investment, Doris Uzoka-Anite; and Labour and Employment, Simon Lalong, he said the council has approved the 2024-2026 medium-term expenditure framework (MTEF) and fiscal strategy papers (FSP).
He affirmed that the executive is required by the Fiscal Responsibility Act to present to the national assembly ahead of a budget presentation, a document which will provide the medium term economic outlook for the economy.
According to him, the FEC made assumptions based on $73.96 per barrel of crude oil and an exchange rate of N700 to $1.
He said: “Now, it was presented on the background of the commendable measures that have been taken since June in order to restore macroeconomic stability by particularly the deregulation of petroleum prices, which we maintained that subsidies are gone and indeed the regulation of the foreign exchange market.
“So, council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda consumer credits, mortgages, mortgage, reversed or dismissed institution as well as funding the newly aligned institutional changes particularly ministries with specific functions that are able to generate growth so that would be better for our country.
“The council members acknowledge the medium term expenditure framework, and it is agreed that we can go ahead to the next step of consultation and presentation to the national assembly.”
In his remark at the briefing, Edun announced that FEC approved the application for $1.5billion financing from the World Bank, noting that the International Development Association has approved the fund, which he said, is free or carries zero interest.
He said: “The total is $1.5 billion and the background is just as you heard from the minister of planning and budget. The world today operates a high interest rate policy, as the developed world looks to fight inflation.
“They do it by restricting money, keeping interest rates high so that you can get inflation down. What that means is that interest rates for everybody else, become not just high but very painful, if not unaffordable within that context.”
According to Edun, Nigeria has been able to make macroeconomic moves that have attracted the attention of the global financial institutions.
He added: “We have been able to take the tough decisions to restore balance in the economy in the government’s finances that has warranted support, that has engendered and has elicited even support from the multilateral development banks and is on the basis of that, that the World Bank is willing to consider and to process on our behalf $1.5 billion of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.”
He said the FEC approved the procurement of the loan based on its affordability.
Edun stated that the African Development Bank has also approved $80 million financing for the Ekiti Knowledge Zone Project which has also now been approved by the council.
He explained: “This financing is for a project in Ekiti called the Ekiti Knowledge Zone Project, that is basically to support young people and their quest to take on technology to use it to be employed to be trained and to benefit from being part of the knowledge economy, being part of the technological wave that is present very much in Nigeria, which is becoming a bigger and bigger share of the economy.
“So it’s $80 million to help the young people in the sector of knowledge economy technology and communications generally.
Meanwhile, FEC meetings will now be held on Mondays as against the Wednesdays under previous dispensations.
Also speaking, the minister of works, Dave Umahi said the FEC approved the continuation of over 12,000 kilometers of roads and 24 bridges, some of them dating back 20 years.
“You know, FEC approved for the continuation of these inherited projects and the new proposal and directed that Federal Executive Council constitutes a committee, made up of the Chief of staff, Minister for Finance and Coordinating Minister of Economy, Minister for Works Minister for a planning and Budget, GCEO/GMD of NNPLC, chairman of FIRS and SSA on Tax Reform, to meet and come up with strategies to source for the funds and everything patterning to the funding,” he stated.
The minister of Information, Mohammed Idris, who announced this at the press briefing noting however that the meetings may not be held weekly but whenever there are pressing issues to discuss.
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