Nigeria’s 2024 Budget Set at N26trillion with N8trillion Allocated for Debt Servicing

Atiku Bagudu, addressing reporters, revealed that Nigeria intends to allocate 26.01 trillion naira ($34 billion) for its 2024 budget. Nigeria’s budget will be based on the assumption of an oil price set at $73.96 per barrel, with an exchange rate of 700 naira per dollar. 

Bagudu further shared that Nigeria’s 2024 spending plan aims for an oil production target of 1.78 million barrels per day.

This information came to light after the Federal Executive Council (FEC) convened in Abuja at the presidential villa on Monday. This stands in contrast to the current approved budget of N21.8 trillion during President Muhammadu Buhari’s administration.

Federal government allocation on debt servicing

He went on to mention that the government will allocate 8.25 trillion nairas (equivalent to $10.8 billion) for debt servicing and earmark 7.78 trillion nairas to handle the remuneration and pension needs of civil servants. 

Bagudu also noted that the economy is anticipated to experience a growth rate of 3.76% in the coming year. Currently, inflation stands at a 20-year high of 27.72%, with expectations of moderating to 21% in the following year.

Inflation in Nigeria has surged into double digits since 2016, causing a decline in incomes and savings. As a response, the central bank has raised interest rates to their highest level in nearly two decades.

Bola Tinubu’s continual efforts on Nigeria’s budget allocation

President Bola Tinubu has faced mounting pressure to alleviate the economic challenges in Nigeria. These issues intensified following the elimination of a long-standing petrol subsidy, resulting in a threefold increase in pump prices and a depreciation of the naira by over 50%. 

This, in turn, led to a significant surge in prices in Nigeria, the continent’s leading oil producer and most populous nation.

Atiku Bagudu mentioned that President Bola Tinubu is actively collaborating with the legislative branch to garner their support and endorsement for this substantial budget proposal. 

The budget’s objective is to solidify the series of economic reforms initiated by the present administration, with the ultimate goal of improving the standard of living for Nigerians and attracting essential foreign investments to the nation.