The Federal Government of Nigeria has indicated the possibility of returning to the Nigeria Contemplates Supplementary budget next year if revenue projections exceed expectations. This announcement was made during a joint sitting of the National Assembly Committee on Finance by Mr. Wale Edun, who addressed the lawmakers on behalf of the government.
President Bola Ahmed Tinubu’s proposed N27.5 trillion budget for 2024 is currently under consideration by the federal parliament. Edun highlighted a significant improvement in the nation’s revenue profile in recent months, emphasizing that if the positive revenue trend continues, the government may seek further appropriation for additional funds.
Edun stated, “Revenue performance is encouraging. If we have a solid revenue performance, we will be coming back, and I am sure Mr. President will authorize the process to return to the Nigeria Contemplates Supplementary to appropriate extra revenue. That is a situation we are all looking forward to.”
The Minister also addressed concerns about budget performance, noting that expenditures as of the third quarter were 32 percent below the budget estimate, while revenue was five percent higher. He attributed the encouraging revenue performance to changes in the exchange rate and the depreciation of the currency, coupled with the existence of a significant foreign debt of about $46 billion.
Edun further discussed plans to expedite the procurement process to enhance capital spending in the 2024 budget. He outlined the overall structure of the budget, with the fiscal deficit expected to decrease from N13.7 trillion to N9.2 trillion, and the percentage of the budget funded by borrowing dropping from 6.1 percent to 3.9 percent.
Senator Sani Musa, Chairman of the Joint National Assembly Committee on Finance, acknowledged Nigeria’s delicate economic situation but expressed optimism about the government’s efforts to address challenges. He emphasized the importance of scrutinizing revenue projections and budget commitments to ensure the delivery of a budget that renews hope in the country’s economic prospects, aptly named the “Renewed Hope Budget” by President Tinubu.
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