The fundamental concepts of the N27.5 trillion budget proposal for the fiscal year 2024 were debated and concluded by the House of Representatives on Friday.
The appropriations bill was referred to the joint House Committees on Appropriations, Finance, and other pertinent Standing Committees for additional legislative action in accordance with current legislative practise.
The House is anticipated to adjourn plenary to meet with Ministers and Permanent Secretaries of various Ministries, Departments, and Agencies (MDAs) in an effort to expedite the legislative process for the passage of the Appropriations bill and adhere to the preexisting January-December budget cycle.
President Bola Ahmed Tinubu has proposed N3.25 trillion, or 12 percent, and N2.18 trillion, or 7.9 percent, of the N27.554 trillion for the security and education sectors in the 2024 fiscal year, according to the schedule made public by the House.
N700 billion in transfers to the Tertiary Education Trust Fund (TETFUND) for infrastructure development in tertiary institutions is one of the budget’s most important commitments for 2024.
The Federal Ministry of Education and its agencies (recurrent & capital spending) have N1.23 trillion allocated to them, whereas the Health Sector receives N1.33 trillion, or 5% of the federal budget, for the Universal Basic Education Commission (UBEC). Amount allotted for the Federal Ministry of Health and its affiliates (both capital and recurring expenditures); Gavi/immunization funds, including counterpart funding for donor-supported programmes; and the Basic Healthcare Provision Fund (BHCPF), which receives a 1% share of the Consolidated Revenue Fund (CRF), totaling N137.21 billion.
In contrast, military, police, intelligence, and paramilitary (recurrent and capital spending) infrastructure accounts for N1.32 trillion, or 5% of the budget, according to the document obtained by Nigerian Tribune. The defence and security sector receives N3.25 trillion, or 12% of the budget.
This covers provisions for transport, electricity, water resources, aviation, and works and housing. Programmes for Social Development and Poverty Reduction (N534 billion): This represents 2% of the Budget and is set aside for social investments and poverty reduction.
Retained revenue for FGN as of September 2023 was N8.65 trillion, or around 104.5% of the pro rata goal of N8.28 trillion. While non-oil tax collections were N2.50 trillion (a performance of 135%), the FGN’s portion of oil income was N1.42 billion (84.7%). N1.55 trillion and N318.95 billion, or 221.4% and 111% of their respective objectives, were collected in CIT and VAT, respectively.
Customs revenues, which include federation account special levies, import duties, excise and fees, totaled N611.65 billion out of N837.59 billion, or 73% of the objective. N1.28 trillion of the N4.74 trillion in other revenues came from independent sources, primarily transfers from GOEs and MDAs.
The total expected expenditure for FY 2023 (including the supplemental budget) is N24.82 trillion, with a pro-rata spending target of N18.62 trillion by the end of September, as stated in the overview of the Federal Government’s expenditure performance for 2023. In reality, N12.7 trillion was spent. Of this total, N3.78 trillion went towards personnel expenses, including pensions, while N5.79 trillion went towards debt servicing.
As of September 2023, just over N1.47 trillion—or 25% of the pro-rata budget—had been made available for capital expenditures by MDAs. This performance level can be partially explained by the implementation of the “Bottom-up Cash Plan” structure, which will take effect in 2023.
With a pro rata deficit of N10.33 trillion at the end of September, the anticipated fiscal deficit for FY 2023 is N13.79 trillion. The actual deficit, which was primarily funded by domestic borrowing, was N4.05 trillion.
