Nigeria’s Finance Minister Promises To Restore Order To Borrowing 

The Nigerian government says it is relying less on borrowing to finance the 2024 budget and more on revenue.

The government also said it is restoring order to borrowing thereby eliminating ways and means of demand credit facility.

Reacting to the 2024 budget recently signed by President Bola Ahmed Tinubu, the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, who also witnessed the signing ceremony stated these on Monday at the Presidential Villa, Abuja

The Minister noted that the budget is a lower budget deficit, hence requiring lower financing requirements.

He explained that “as a percentage of GDP, the Nigerian 2024 budget deficit is down from 6.1% to 3.8%.

“So we’re relying less on borrowing and more on revenue and I think you have to take the two together. I think we’re very optimistic about the improvements in revenue that will take place.

“We bringing order to government borrowing, so Ways and Means are being eliminated by taking the funding that is required from the market, as opposed to from printing of money by Central Bank.” The Minister added.

Mr. Edun assured that implementation of the budget has already begun emphasising that it is a hopeful budget that will inspire Nigerians and encourage them to believe in the nation’s economy again.

The Minister hinted that the key sector of basic education and humanitarian issues have a lot to benefit from the budget.

“Next is implementation. The N28.8 trillion budget has been signed into law by Mr. President so it’s immediate implementation. It’s a very hopeful budget, one that will inspire Nigerians and encourage them to really… those who are investors to come out and invest and even those who rely on government, such as school children and the education sector, they have a lot to benefit.

“But overall, the change in this budget is that it is focused on growing the economy. The capital expenditure is larger than the recurrent expenditure; over N10 trillion is going to be the capital expenditure, while recurrent is just about N8.8 trillion. I think that shows the direction of travel, it shows that we can expect an economy rejuvenated, re-galvanized and set for growth” Mr. Edun added.

He disclosed further that the government will apply technology and digitalization to ensure that the revenue accrued to the government from all sources, including from government-owned enterprises, comes into the consolidated revenue fund.

Also Speaking on the budget implementation, the Minister of Budget and National Planning, Atiku Bagudu acknowledged that the 2024 budget has increased spending on priority areas such as Human Capital Development, Education and Health.

Other areas are Infrastructure, Works, Power, Housing, Water Resources Innovation, Digital Economy, Creative Economy, Science and Technology.

The Minister also added that the spending on Humanitarian issues has also increased.

“So this is a budget that has increased spending in all priority areas between the MDAs and the statutory transfers, we are spending close to N11.4 trillion as capital expenditure, which is about 39% of the budget itself. I think this is almost the first, in a very long time in our history.

Bagudu stressed that the N100 billion provision for  school feeding for children is to  support and expand the inherited homegrown school-feeding.

He added that the aim is also to address the nutritional deficiencies affecting the children.

“Equally, to follow up from where the Coordinating Minister left it is to acknowledge that this is a budget that has increased spending in our priority areas; Human Capital Development, Education, Health and Infrastructure, from Works, Power, Housing, Water Resources, as well as Innovation, Digital Economy, Creative Economy, Science and Technology. Humanitarian spending has also gone up.

“So this is a budget that has increased spending in all priority areas between the MDAs and the statutory transfers, we are spending close to N11.4 trillion as capital expenditure, which is about 39% of the budget itself. I think this is almost the first, in a very long time in our history.

Bagudu stressed that the N100 billion provision for school feeding for children is to support and expand the inherited homegrown school-feeding.

 “Equally, Mr President said, today one of the things that gave him pleasure was that this budget even provided N100 billion to provide school feeding for children so that it can support the programme we inherited, the homegrown school feeding, but expand on it and address the nutritional deficiencies that are commonplace.” The Minister added.

Olusola Akintonde