The Federal Government of Nigeria has approved the Medium-Term Expenditure Framework for 2024-2026, projecting expenses of N26.01tn for the 2024 fiscal year.
The budget is expected to be presented to and passed by the National Assembly before the end of December 2023.
The expenditure is estimated to include statutory transfers of N1.3tn, non-debt recurrent expenditure of N10.26tn, debt service estimated at N8.25tn, and personnel pension cost of N7.78tn.
The increased debt service was due to the securitization of N22.7tn Ways and Means, which became a federal government debt at nine percent, amounting to N2.1tn as debt service.
Personnel costs rose significantly due to transfers from the agreement between the FG and the Organized Labour.
The Federal Executive Council (FEC) has approved the expenditure projection for the 2024 budget, which is expected to be presented to and passed by the National Assembly before December 31, 2023.
The Minister of Budget and National Planning, Abubakar Bagudu, told State House Correspondents after the Federal Executive Council meeting at the Presidential Villa, Abuja.
“The aggregate expenditure is estimated at N26.01tn for the 2024 budget, which includes statutory transfers of N1.3tn non-debt recurrent expenditure of N10.26tn. Debt service estimated at N8.25tn as well as N7.78tn being provided for personnel pension cost.
“Because N22.7tn Ways and Means was securitised, meaning it became a federal government debt at nine per cent.
“Yes, there would be a supplementary budget because there are continuing obligations and there are responses to security which can be immediate.
“Mr. President is mindful of those and is assessing them. But he is also committed to the budget process and its integrity. He wants to ensure that monies that are appropriated will be spent in the period for which they are appropriated.
“And then in terms of presentation of the budget, Mr. President has been engaging with the National Assembly leadership, even ahead of the presentation to say ‘these are our assumptions, these are our thought processes,’ so that it can reduce the lead time for which the budget has to go through such considerations.
“We believe that this budget will be presented in good time, particularly the 2024 budget to be passed and signed before December 31, 2023.”