President Bola Tinubu presents 2024 budget of N27.5 trillion to the National Assembly

President Bola Ahmed Tinubu has presented the 2024 budget to the National Assembly’s joint session.

With a N27.5 trillion budget and a projected revenue of N18.32 trillion, it is the largest budget in Nigerian history, with a N9.18 trillion budget deficit. N7.69 trillion in revenue comes from oil, N3.52 trillion from non-oil sources, and N6.86 trillion from independent and other sources of income. The total amount spent is N8.72 trillion for capital projects, N9.92 trillion for non-debt recurring expenses, N8.49 trillion for debt service, and N1.38 trillion for statutory transfers.

According to these estimates, debt service accounts for 95% of capital expenditures and 30% of total expenses.

Additionally, debt service makes up 45% of the anticipated income. Nigeria’s debt service burden is unmanageable and seriously impeding the country’s ability to grow and develop economically.

It raises the possibility of financial distress and erodes the nation’s credibility and confidence in the eyes of investors. Nigeria’s government should raise the nation’s tax base and enforce tax compliance in order to boost revenue generation and address the country’s persistent debt issue.

Additionally, it’s imperative to increase government spending efficiency and cut non-essential spending. In order to guarantee that limited government resources are used to promote productivity and incentivize individuals and businesses to pay taxes voluntarily, the value for money principle must be implemented.