Business and Economy

N2.18 trillion 2023 Supplementary budget approved, signed into law

On November 2, 2023, the Nigerian Senate and House of Representatives passed the N2.18 trillion supplementary budget. Eleven Ministries, Departments, and Agencies (MDAs) receive funding, including the Federal Ministry of Works, the Federal Ministry of Agriculture and Food Security, the Ministry of Defense, and Police formations and Command. Recurrent expenses make up N1.01 trillion (46.3%) and capital expenditures N1.17 trillion (53.7%).

Service Wide Vote was allotted the largest amount of N615 billion among the MDAs, followed by the Ministry of Works at N300 billion and the Ministry of Defence at N476.5 billion. Roughly six percent of the recurring costs are related to the Service Wide Vote.

Its four budget line items are as follows: N400 billion for cash transfer; N210 billion for four-month wage award; N3 billion for MDAs take-off grant; and N2 billion for monitoring and evaluation. The Consolidated Revenue Fund of the Federation would be used to pay the supplemental budget, according to the government.

However, as would be expected for a budget statement, no additional details regarding the revenue sources were given. This implies that borrowing would be used to pay for the increased spending. Effective communication between the government and the populace regarding the status of the cash transfer disbursement is crucial. Given the suffering that the elimination of the fuel subsidy and the depreciation of the currency had caused in the previous few months, this is crucial in rebuilding the confidence of the public in the government.

Among other things, President Bola Tinubu signed the N2.18 trillion Supplementary Appropriations Act on Wednesday in Abuja to address Nigeria’s critical infrastructure gap and bolster the country’s security architecture.

In the presence of Senate President Godswill Akpabio, Speaker of the House of Representatives, Hon. Tajudeen Abbas, Secretary to the Government of the Federation, Sen. George Akume, Majority Leader of the Senate, Opeyemi Bamidele, Chairmen of the House of Representatives Appropriations Committee, Hon. Abubakar Bichi, and Senate Appropriations Committee, Sen. Olamilekan Adeola, as well as Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, signed the Supplementary Appropriations Act, 2023, in the President’s office at the State House.

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