With the 2023 fiscal year gradually running out, the federal government Monday projected N26. 01 trillion budget expenditure for the year 2024, out of which N8.25 trillion will be used for debt servicing.
This was a major highlight of the Federal Executive Council (FEC) presided over by President Bola Ahmed Tinubu, during which the Medium-Term Expenditure Framework (MTEF) for 2024–2026 was approved.
Briefing journalists after the meeting, Minister of Budget and National Planning Senator Abubakar Bagudu said the administration would maintain the January–December budget implementation cycle.
He said: “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 pension cost.”
Bagudu also said the increase in the debt service was because the “N22.7 trillion Ways and Means was securitised, meaning it became a federal government debt at nine per cent.”
…Edu, Lalong brief too
Similarly, the meeting which was the second since the Tinubu administration came on board, also focused on the economy as well as the agreement reached between government and the labour unions early in the month following threat of industrial action early this month.
Speaking on the desirability of fresh loan from the World Bank, Minister of Finance and Coordinating Minister of the Economy Wale Edun said the meeting approved the application for financing from the Bank’s International Development Association (IDA).
Edun said the country got access to $1.5 billion from the IDA, which is the virtually free or zero-interest lending arm or financing arm of the global Bank.
The minister said: “Nigeria has been able to make the kind of macro-economic moves to take the tough decisions to restore balance in the economy in the government’s finances that has warranted support.
“This had engendered support from the multilateral development banks. It is on this basis that the World Bank is willing to consider and to process on our behalf $1.5 billion of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.”
Further to this, the minister said another $80 million financing from the African Development Bank was approved by the FEC for the Ekiti Knowledge Zone (EKZ) project aimed at empowering the youth in the sector of Knowledge Economy through technology and communications generally.
“This is basically to support young people and their quest to take on technology to use it to be employed to be trained and to benefit from being part of the knowledge economy.
“This is being part of the technological wave that is present very much in Nigeria, which is becoming a bigger and bigger share of the economy,” he said.
Also speaking at the media parley, Minister of Labour and Employment Simon Lalong said FEC approved the agreement between labour and the government during the October 2, 2023 meeting.
“Presidential approval was given after analysing the agreement to provide for industrial harmony. Similarly, the 30 days implementation timeline agreed on was also approved by FEC,” the former Plateau state governor said.
POST AUTHOR: Abdullahi M. Gulloma
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