The Federal Government of Nigeria has pegged the country’s budget deficit for the 2024 fiscal year at N9.18 trillion, representing a reduction of N4.60 trillion or 33.5 per cent compared to the N13.78 trillion budget for the 2023 fiscal year.
President Bola Tinubu, during his first budget presentation of the proposed N27 trillion budget for the 2024 fiscal year to the joint session of the National Assembly,noted that the budget deficit represents 3.88 per cent of the country’s gross domestic product (GDP). The proposed deficit is lower than the N13.78 trillion deficit recorded in the 2023 fiscal year, which represented 6.11 per cent of GDP.
“Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.”
“Budget deficit is projected at 9.18 trillion naira in 2024 or 3.88% of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023 which represents 6.11% of GDP,” he said.
According to President Tinubu, the proposed budget deficit will be financed through a combination of new borrowings, privatisation proceeds, and drawdowns from multilateral organizations. Specifically, the government plans to borrow 7.83 trillion naira, receive 298.49 billion naira from privatization proceeds, and draw down 1.05 trillion naira from multilateral and bilateral loans secured for specific development projects.
In breaking down the 2024 Appropriation Bill, the president outlined that the federal government’s total expenditure is projected to be 27.5 trillion naira. Of this amount, 9.92 trillion naira is earmarked for non-debt recurrent expenditure, 8.25 trillion naira for debt service, and 8.7 trillion naira for capital expenditure.
President Tinubu noted that the budget estimates are based on higher oil production and tax collection, which are expected to boost government revenues in the coming year. Furthermore, he stated that his administration plans to borrow less than in the past, in order to keep the country’s debt service costs at a sustainable level.
The president also emphasised that his administration remains committed to meeting the country’s debt obligations, with the projected debt service payments accounting for 45 per cent of the government’s expected total revenue.