President Bola Tinubu has made a significant request to the Nigerian legislature, seeking an increase of N6.2 trillion to the 2024 appropriation act. This request was conveyed in a letter read by Senate President Godswill Akpabio on the Senate floor on Wednesday, as reported by local media.
The proposed increase would bring the 2024 budget to N34.9 trillion, up from the initial N28.7 trillion that Tinubu signed into law on January 1.
Breakdown of the Proposed Increase
President Tinubu's request includes:
- N3.2 trillion allocated for Renewed Hope Infrastructure Projects and other critical infrastructure across the country.
- N3 trillion designated for recurrent expenditure to ensure the smooth operation of the federal government.
In his letter, Tinubu cited the constitutional provision that allows for such amendments, stating, “Pursuant to section 58 (2) of the constitution of the federal republic of Nigeria as amended, I forward herewith the above-named bills for consideration and passage by the Senate.”
Funding the Increase
The President assured that the additional funds would be sourced from revenues accruing to the federal government of Nigeria. This includes remittances from various ministries, departments, and agencies (MDAs), which have been mandated to remit 5% contractors’ retention fees to the Central Bank of Nigeria (CBN).
Legislative Process
The appropriation act amendment bill aims to modify the principal act to accommodate these new financial requirements. Tinubu emphasized the necessity of this increase, highlighting the need for substantial investment in infrastructure and the essential recurring expenditures required for the federal government’s operations.
Implications for Nigeria
This substantial increase underscores the government's commitment to infrastructure development and economic stability. However, it also raises questions about fiscal responsibility and the potential impact on Nigeria’s national debt. As the Senate deliberates on this request, Nigerians will be closely watching the outcomes and implications for the nation's economy and public services.
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