President Bola Tinubu, has projected a reduction in the projected budget deficit for the 2024 fiscal year, marking a shift from previous years.
Addressing the joint session of the National Assembly during the presentation of the 2024 appropriation bill on Wednesday, he highlighted a notable decline in the deficit, emphasizing Nigeria’s commitment to meeting its debt obligations.
“In 2024, the budget deficit is projected at 9.18 trillion naira or 3.88% of GDP, showcasing a decrease from the 13.78 trillion naira deficit recorded in 2023, representing 6.11% of GDP,” Tinubu declared during his speech.
Highlighting the funding sources to bridge this deficit, the President outlined a strategy involving new borrowings totaling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds, and a drawdown of 1.05 trillion naira from multilateral and bilateral loans earmarked for specific development projects.
Tinubu’s emphasis on responsible debt management and commitment to reducing the deficit comes amidst a backdrop where he has sought National Assembly approval for external borrowings as part of the 2022-2024 external borrowing plan.
His recent request amounts to $8.69 billion and €100 in external loans.
The President’s proposed budget for 2024 stands at N27.5 trillion, envisioning a 3.76% economic growth trajectory and an anticipated moderation of inflation to 21.4%.
“Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue,”Tinubu reiterated, emphasizing the nation’s determination to ensure fiscal prudence and responsible financial management in the face of economic challenges.