FG Would Borrow N9 Trillion From The Debt Market To Fund 35% Of The 2024 Budget - DG, Budget Office

Justice Eberechi Nyesom-Wike

According to Mr. Ben Akabueze, Director General of the Federation Budget, the Federal Government has indicated plans to borrow N9 trillion from the debt market to fund 35% of the budget for the following year.

Speaking on the sidelines of the 29th Nigerian Economic Summit on Monday in the nation's capital, Abuja, he claimed that the remaining 65%, or N17 trillion, will come from income, implying that the remaining balance will come from borrowing.

"We are going to spend 26 trillion and we are looking to raise 17 trillion in revenue and the balance in debt," Mr Akabueze said in an interview on Monday.

The federal government plans to spend over N26.01 trillion in 2024, which is N3.36 trillion, or 14.8 percent, more than the equal N22.65 trillion in 2023 (expected spending that includes the N819.54 billion supplemental provision).

N8.25 trillion and N243 billion, respectively, have been set aside from the budget for debt service and sinking funds to settle maturing debts issued to creditors and local contractors.

The budget, which will cover the first full year of President Bola Tinubu's administration since he took office in May, will aim to outline cost-cutting measures to promote good governance, Mr. Akabueze stated during the summit's public consultation on the draft FGN 2024–2026 Medium Term Fiscal Framework and Fiscal Strategy Paper (MTEF/FSP).

According to him, part of this will involve looking into methods to reduce corruption and increase efficiency and value for money in the 2007 Public Procurement Act.

Additionally, the FG cut its own projected 2024 budget deficit to N9.05 trillion, which is 22% less than the N11.60 trillion estimated for 2023. Moving ahead, the FG says it plans to maintain the amount within the 3 percent level set forth in the 2007 Fiscal Responsibility Act (FRA).

Approximately 53% of its total revenue and 3.83 percent of the expected gross domestic product (GDP) are represented by the proposed deficit.