Atiku Bagudu, the Minister of Budget and Planning made this announcement following the FEC meeting, emphasizing that the government is working on maintaining the January to December budget cycle and ensuring the 2024 budget's approval and signing before December 31, 2023. .
Bagudu, alongside several other ministers, including Mohammed Idris from the Ministry of Information and National Orientation, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, Engr. Dave Umahi, the Minister of Works, Doris Uzoka-Anite, responsible for Industry, Trade and Investment, Simon Lalong from the Ministry of Labour and Employment, and the Minister of State for Labour, Nkeiruka Onyejecha, also disclosed that the council had given its approval for the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP).
Bagudu explained that the Fiscal Responsibility Act requires the executive to present a document which offers a medium-term economic outlook for the economy to the National Assembly before the budget presentation.
Within this framework, the FEC made several key assumptions, including a reference price for crude oil at $73.96, an exchange rate of N700/$, oil production at 1.78 million barrels per day, debt service amounting to N8.25 trillion, an inflation rate of 21 percent, and a GDP growth of 3.76 percent.
Bagudu said, “Now, it was presented on the background of the commendable measures that have been taken since June in order to restore macroeconomic stability, particularly by 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, reversed or dismissed institution as well as funding the newly aligned institutional changes, particularly ministries, with specific functions that are able to generate growth that would be better for our country...
“Then the inflation of 21 per cent and GDP growth rate of 3.76 per cent . The aggregate expenditure is estimated at N26.01 trillion for the 2024 budget, which includes statutory transfers of N1.3 trillion, non debt recurrent expenditure of N10.26 trillion, debt service estimated at N8.25 trillion, as well as N7.78 trillion being provided for personnel and pension cost.
