2024 Budget threatened as CBN predicts less revenue from oil exports

Adekunle Adesuji, Abuja

The Central Bank of Nigeria ( CBN) on Thursday disclosed that the soaring inflation and exchange rates will drastically decline in 2024 .
The Governor of the Apex Bank , Olayemi Cardoso made disclosed this in his presentation to the National Assembly Joint Committee on Banking , Insurance and other Financial Institutions in Abuja.
He also projected less revenue from oil exports in the next fiscal year, just as it declared that total trade from Nigerian Foreign Exchange Market (NFEM) , stood at N18.804billion in the third quarter ( Q3) of 2023.
He explained to members of the Joint Committee from both chambers of the National Assembly , that outlook for domestic economy in Nigeria for 2024 is very positive as both the Inflation and Exchange rates , would withstand fluctuating pressures on them and get stabilized .
“The outlook for the domestic economy remains positive and expected to maintain the positive trajectory for 2024 .
“Inflation pressures may persist in the short – term but is expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of foreign exchange market”, he said .
He specifically informed the committee members that the unification of the exchange rate windows in June 2023, has ushered in a new approach to the management of the exchange rate aimed at reducing arbitrage, rent seeking behaviour and speculation in the market.
“The policy aims at creating a market where the demand and supply of foreign exchange determines the exchange rate .
“The premium has narrowed and our focus on increasing the autonomous FX supply would lead to more stability and further narrowing of the premium .
“Total Trade in the third quarter of 2023 , stood at N18.804.68billion. Exports were valued at N10.346.60billion while total imports stood at N8.457.68billion . This represents positive trade balance which would lead to increase of the external reserves “, he said .
He however stated that due to domestic prevailing factors, less revenues , would be earned from oil exports in 2024 .
He said: ” We expect less revenue from oil exports due to the production limit of 1.78mbpd in 2024 . OPEC approved quota for Nigeria is 1.8mbpd , which is higher than the 2024 budget assumption .
“However, the country ‘s production has been below these thresholds. The budget benchmark for 2023 was 1.69mbpd , but the highest level of production during the year , was about 1.35mbpd in Q3 of 2023.
“The reasons for the underperformance of the oil production target , include , crude oil theft and pipeline vandalization, production shut – ins and divestments by major oil companies “.
Earlier before the CBN Governor’s presentation , the Chairman of the Joint Committee, Senator Tokunbo Abiru ( APC Lagos East) , said the interactive session was organized for statutory briefing by CBN in line with extant laws .
The co – Chairman of the committee , Hon Bahir Bello El-Rufai , in his remarks , commended the CBN governor and the entire management team on measures being put in place to stabilise the economy generally .

We’re transforming Nigeria with support of NASS

Meanwhile, President Bola Tinubu says the efforts of his administration to transform Nigeria’s economy are yielding results with the support of the National Assembly led by Senate President Godswill Akpabio and the Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas.
Speaking at a colloquium to mark the 61st birthday of the Senate President, on Thursday in Abuja, President Tinubu said the challenges facing the country will be jointly assessed by the executive and legislature with a view to evolving implementable solutions for the good of Nigerians.
“Having Senate President Akpabio, and the Speaker of the House of Representatives, Right Honourable Abbas, on my side is enough for me to succeed, and we will succeed,” he said.
Extolling the leadership credentials of the Senate President, President Tinubu said the Chairman of the National Assembly has always shown commitment to national development, starting out as a commissioner in Akwa Ibom State, where he understudied Lagos; drew up a blueprint and implemented it as a two-term Executive Governor.
“I believe in the person of Sen. Godswill Akpabio. He is truly in God’s will for his life. I was governor in Lagos State from 1999 to 2007, and he was a commissioner.
“As a commissioner, he was extremely inquisitive about what was going on in Lagos. I didn’t know then that he wanted to be a governor. As governor, he transformed Akwa Ibom tremendously,’’ the President stated.
Tinubu recalled how some of the economic and social programmes initiated by Senator Akpabio, when he was governor, developed the state, noting that the drainage system Senator Akpabio constructed had saved many lives and livelihoods.
In his remarks, the Senate President commended President Tinubu for his visionary leadership, most recently demonstrated in the quality of decisions taken so far to ensure improved security and a revamped economy.
“You are the first President who openly stepped out and said you believed that someone like me would make a difference as Senate President.
“It is not that the National Assembly is an appendage of the executive. President Tinubu is the first to get it right. Mr. President, there’s no country that you have been to that investors did not rush to meet with you,’’ Senator Akpabio said.
The Senate President assured the President that the National Assembly would work with him to transform the country, adding that, “we did not come for a boxing bout. We came to transform Nigeria.”
The Speaker of the House of Representatives thanked the President for articulating his economic vision clearly for the National Assembly, departing from what he described as “impulsive programmes.”
The keynote speaker, Olisa Agbakoba (SAN), appreciated the President for his courage and diligence in leading the nation on the path of growth and recovery with innovative ideas and for appointing competent hands to run the affairs of the country according to a statement by
Chief Ajuri Ngelale,
Special Adviser to the President (Media & Publicity)

.Lawan assures of increased funding for defence

Similarly, Chairman of the Senate Committee on Defence, Senator Ahmad Lawan, has assured that the Defence Space Administration will be given adequate funding in the 2024 budget to enable the administration discharge its mandate optimally.
Lawan made this known, on Thursday, when the Defence Space Administration appeared before the Senate Committee on Defence to defend its budget estimates for the 2024 fiscal year.
He added that improved funding for the DSA became imperative in view of the evolving security challenges confronting the nation.
Lawan, in his welcome address said, “This is an opportunity for the Defence Space Administration to interact with the Committee on Defence to largely explain what happened in the 2023 Appropriation, how far you have been able to implement the projects as it relates to Defence Space Administration.
“It is also an opportunity for you to disclose if you have benefitted from the supplementary appropriation 2022 in which special attention was given to the Defence sector.
“Let me assure you on behalf of my colleagues, that this committee is going to work with your administration to ensure that you discharge your mandate successfully.
“We believe you’re doing a good work already, but you probably need more resources and attention to ensure that you discharge your mandate optimally.
“We know the resources have not been sufficient, but we want to ensure that there is going to be reasonable and significant improvement to what you were getting before 2024.”
“The idea of securing the country is never cheap and it is much more expensive when the country is already in a dire situation with so many security challenges all over”, Lawan added.
The Chief of Defence Defence Space Administration, Air Vice Marshal Ahmed Abdullahi Shinkafi, in his presentation, disclosed that the sum of N6,284,786,717.00 was appropriated to the DSA in 2023.
He added that out of the amount, N1,922,736,282.00 was for personnel emolument; N298,632,998.00 for overhead cost; and N4,063,417,437.00 for capital projects.
Shinkafi explained that the amount appropriated to the DSA in 2023 for the execution of capital projects was used for the development of the National Defence Space School, development of DSA town in Abuja, development of National Defence Space Communication Satellite Centre, and upgrade of software for Cyber Space Operations in DSA headquarters, amongst others.
Giving a breakdown of the budget estimate for 2024, the Chief of Defence Space Administration stated that a total of N10,756,136,620.83 was proposed for the next fiscal year.
He disclosed that out of the amount, N6,928,957,268.00 was for recurrent expenditure; and N3,827,179,352.00 was proposed for capital expenditure.
Shinkafi, however, observed that the proposed amount budgeted for the capital expenditure needs of the administration was grossly inadequate.
“It is pertinent to state that some products and services such as satellite imagery, personnel/assets
tracking as well as Unmanned Aerial Vehicle Intelligence Surveillance an
Reconnaissance (SR) Imaginary were already procured by DSA and have been used to support the ongoing Counter Insurgency Operations across the country.
“These products and services have contributed immensely to some of the
successes being recorded in these internal security operations.
“It is noteworthy to observe that these acquisitions translate to huge maintenance cost. Hence, the need to upscale the capital allocation for effective usage of these critical national strategic assets can not be underestimated. This would ultimately make them effective for geospatial data capturing and analysis towards enhancement of national Security”, Shinkafi explained.
In a related development, the Director General of the Defence Research and Development Bureau, Major General Emmanuel Ndagi, while also appearing before the Defence Committee to defend the Bureau’s 2024 budget estimates, lamented that “the fixing of a budget ceiling has not been favourable to the Bureau in its annual budgetary allocation.”
He nevertheless commended the Committee for making deliberate efforts to ameliorate the situation through the window of interventions.