FEC approves 2024 appropriation bill of N27.50trn, as Tinubu presides over meeting

By Adekunle Adesuji, Abuja

The Federal Executive Council (FEC) has approved the 2024 appropriation bill of N27.50 trillion for the 2024 budget with a N1.5 trillion increase from the earlier estimated bill.

The government had proposed N26.2 trillion earlier but had reviewed the Medium Term Expenditure Framework (MTEF) that was approved by the National Assembly.

Minister of Budget and National Planning, Sen. Atiku Bagudu, announced this on Monday at the end of the FEC meeting chaired by President Bola Tinubu in Abuja.

He said that the new proposal was legitimate because the  appropriation was dependent on the final process that could be changed due to many variables including new priorities and MDAs presentations.

Bagudu said that MTEF that was approved by the National Assembly put the exchange rate at N700 per dollar and an oil price benchmark of 73.96 dollars.

He added that FEC revised the MTEF to use an exchange rate of N750 to a dollar and oil price benchmark of N77.96 in order to further fund the eight priority areas of the administration.

Bagudu said that the president would give more breakdown of the budget during its presentation to the National Assembly, stressing that the presentation date would be decided by the National Assembly.

The minister said that the 2024 forecast revenue would now be N18.32 trillion higher than the 2023 budget and the supplementary budgets provisions.

The Minister of Finance and Coordinating Minister of the Economy, Chief Wale Edun, said that the Federal Government has secured funds from the African Development Bank for budget support.

He said that the one billion dollars funds would aid effective implementation of the government reform policies as well as ensure transparency and accountability in the various tax reforms.

Edun added that it would be used in areas such as power and ensuring the  efficient utilisation of tax revenues, adding that it was not for project funding.

Meanwhile, the National Assembly Monday disclosed that President Bola Tinubu will on Wednesday this week , present 2024 budget to joint session of the National Assembly

Secretary , Research and Information at the National Assembly , Dr Ali Barde Umoru .made confirmation of the budget presentation to journalists while requesting for list of those to be allowed into the chamber .

Communication on the budget presentation by President Tinubu to joint session of the National Assembly must have been forwarded to both the President of the Senate , Godswill Akpabio and Speaker of the House of Representatives , Hon Tajudeen Abbas which would however be read in plenary on Tuesday.

Ahead of the budget presentation , President Tinubu had three weeks ago , forwarded to both chambers of the National Assembly , 20224 – 2026 Medium Term Expenditure Framework ( MTEF) and Fiscal Strategy Paper ( FSP) where the sum of N26.1trillion was proposed as total expenditure profile for 2024 fiscal year .

The Senate through its committee on Finance after two weeks of interactive sessions with heads of Ministries , Departments and Agencies ( MDAs) on revenue and expenditure projections made for them , approved the MTEF .

It specifically , approved the N26.1trillion proposed as 2024 budget and other parameters as proposed by President Bola Tinubu .

It approved the new borrowings of N7.8trillion , pegs  benchmark oil price for the 2024 at $73.96 and   oil production volume per day at 1.78million barrels .

Other parameters approved are GDP growth rate of 3.76% ,  Inflation rate of 21.40% , suggested benchmark exchange rate at N700 to $1dollar and projected budget deficit of N9.04 trillion .

The report reads : ” FGN recommended spending N26trillion with N16.9trillion as retained revenue .

” N9trillion budget deficit ( including GOEs) , N7.8trillion in new borrowings ( including borrowing from foreign and domestic sources) .

” N1.3trillion worth of statutory transfers , an estimated N8.2trillion in debt service , N234.6billion in the sinking fund , N1.27trillion in pension , gratuity and retiree benefits

” Total recurrent (non – debt ) of N10.2trillion and N4.49trillion as capital expenditure

Also, President Bola Tinubu on Monday swore in the eight new Permanent Secretaries, whose appointments he approved last Friday after they successfully scaled the Federal Civil Service’s selection process.

Tinubu swore in the newly elevated officers just before the commencement of this week’s Federal Executive Council meeting, over which he is currently presiding.

The new Permanent Secretaries include: Ndakayo-Aishetu Gogo; Adeoye Ayodeji; Rimi Abba; Bako Odoh; Omachi Omenka; Ahmed Umar; Watti Tinuke; and Ella Agbo.

Meanwhile, President Tinubu is currently presiding over the FEC meeting, which is being attended by Vice President Kashim Shettima.

Also present are the Secretary to the Government of the Federation, George Akume; the Head of the Civil Service of the Federation, Dr Folashade Yemi-Esan; the Chief of Staff to the President, Hon Femi Gbajabiamila.

Monday’s FEC gathering is also being attended by all ministers and some other senior presidential aides who were earlier allowed by Tinubu to appear in FEC meetings.