Ben Akabueze, the Director-General of the Budget Office of the Federation, has expressed that the proposed N27.5 trillion budget for 2024, awaiting approval in the National Assembly, is considered “too small” to adequately address Nigeria’s economic needs.
While acknowledging the government’s commitment to fiscal responsibility in aligning expenses with available resources, Akabueze stated in an interview on Channels TV that the budgetary allocation is conservative compared to the economic obligations of the government.
“I’m always first to acknowledge that the budget of the Federal Government of Nigeria is way too small relative to our needs and our requirements but it is now a case of cutting out coats according to our cloth rather than our size,” noted Akabueze. He added that the budget’s size is constrained by the limited public revenues available.
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Addressing the International Monetary Fund’s (IMF) projection of Nigeria’s economic growth rate, Akabueze stated that the IMF assessment is not entirely based on the economic facts of the country. He added that the government’s projection, as presented by President Bola Tinubu during the budget presentation, is more reasonable than that of the international financial institution.
President Tinubu projected a 3.76% growth rate in the 2024 fiscal year, with an N18.32 trillion revenue target for budget funding. In contrast, the IMF had projected a 3.1% economic growth for Nigeria in 2024. Akabueze defended the government’s projection, asserting that IMF predictions for the country have been inaccurate in the past four years.
“In the last four years, IMF has got it wrong about our projections. Organizations can’t get it right better than the people who have direct responsibility for managing their individual economies. Our actual growth has always beat their projections,” he added.
The N27.5 trillion 2024 budget proposal includes a total aggregate revenue projection of N18.32 trillion and a deficit of N9.18 trillion. It prioritizes capital expenditure at N8.7 trillion and recurrent expenditure at N18.51 trillion.
President Tinubu highlighted that the budget focuses on the well-being of the impoverished, emphasizing healthcare, security, education, and the economy.
However, analysts have voiced criticism toward the budget, despite its limited details. Based on the information released by the federal government, the budget appears to be characterized by lavish government spending, underscoring a lack of sensitivity to the struggles faced by the average Nigerian amidst ongoing economic challenges.
Notably, the projected expenditure for various items such as the Presidential Air Fleet, welfare packages, maintenance, renovations, and other expenses in the 2024 Budget is expected to gulp a staggering N346 billion.