2024 Budget Highlights: Oil At $77.96, Naira Exchange Rate Locked At 750 Per Dollar

Nigeria’s President Bola Tinubu presented the 2024 budget proposal to the National Assembly, which included a conservative oil price benchmark of $77.96 per barrel and a Naira to US Dollar exchange rate of 750 per US Dollar.

President Bola Tinubu unveiled the 2024 budget, named the ‘Budget of Renewed Hope,’ before a joint session of the National Assembly in Abuja on Wednesday. The proposed budget amounts to N27.5 trillion.

The budget proposed aggregate expenditure of 27.5 trillion naira for the Federal Government, with a non-debt recurrent expenditure of 9.92 trillion naira, debt service of 8.25 trillion naira, and capital expenditure of 8.7 trillion naira.

The budget deficit is projected to be 3.88 percent of GDP, financed by new borrowings, privatization proceeds, and a drawdown on loans for development projects.

He said, “Distinguished members of the National Assembly, the revised 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sets out the parameters for the 2024 Budget.

“After a careful review of developments in the world oil market and domestic conditions, we have adopted a conservative oil price benchmark of 77.96 US Dollars per barrel and daily oil production estimate of 1.78 million barrels per day. We have also adopted a Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024.

“Accordingly, an aggregate expenditure of 27.5 trillion naira is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion naira while debt service is projected to be 8.25 trillion naira and capital expenditure is 8.7 trillion naira.”

The President affirmed Nigeria’s dedication to fulfilling its debt obligations, emphasizing a projected debt service that is anticipated to constitute 45% of the total expected revenue.

“Budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 per cent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP.

“The deficit will be financed by new borrowings totaling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects.“