FG proposes N26 trillion as 2024 budget amid 26.72% inflation rate

By Ibidunni Banjoko 

The Federal Government of Nigeria is projecting an estimate of N26 trillion for the 2024 appropriation budget. The government intends to submit this budget proposal to the National Assembly before December 31, 2023. This announcement was made by the Minister of Planning and Budget, Atiku Bagudu, following a Federal Executive Council (FEC) meeting presided over by President Bola Tinubu.

The FEC approved the 2024–2026 medium-term expenditure framework (MTEF) and fiscal strategy papers (FSP). This framework is required under the Fiscal Responsibility Act and provides the medium-term economic outlook for the country. The government’s assumptions for this projection include a crude oil price of $73.96 per barrel and an exchange rate of N700 to $1.

The budget proposal is developed based on the government’s measures to restore macroeconomic stability and foster economic growth. These measures include the deregulation of petroleum prices and the regulation of the foreign exchange market. The government also plans to implement initiatives related to consumer credit, mortgages, and institutional changes to support growth in the country.

The next step will involve consultations and presenting the budget proposal to the National Assembly.

Meanwhile, Nigeria’s inflation rate has hit an all-time high as the figure climbed to 26.72 percent, recording a 0.92 percent increase from the previous month’s 25.80 percent.

According to the National Bureau of Statistics’ (NBS’s) latest Consumer Price Index report for September 2023, the upsurge in inflation is mainly linked to the removal of petrol subsidies and the devaluation of the official exchange rate, both exerting substantial impacts on consumer prices.

“September 2023, the headline inflation rate increased to 26.72 percent relative to the August 2023 headline inflation rate which was 25.80 percent,” NBS revealed on its X official handle.


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