Tinubu presents N47.9trn Budget of Restoration before joint section of NASS

..as Abbas says 2025 budget, Nigeria’s fiscal realities warrant critical reflection

By Tom Okpe

President Bola Ahmed Tinubu has laid before joint session of the National Assembly, N47.9 trillion budget for the 2024 financial year.

The budget christened; ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity,’ at presentation on Wednesday at the National Assembly Abuja, Tinubu said the budget is based on parameters such as oil price benchmark of $75 per barrel, domestic crude oil production of 2.06 per day, 2.10, GDP growth rate of 4.6% and exchange rate of N1500/$ as well as 15% inflation rate.

Tinubu while delivering his budget speech before the joint House of Representatives and Senate session said the budget is to consolidate key policies of the Federal Government to restructure and boost the nation’s economy.

The President said: “Defence and Security is allocated N4.91 trillion, infrastructure, N4.06 trillion, education, N3.5 trillion and Health got N2.4 trillion.

“The budgetary allocations are informed by the commitment of his administration to security of lives and property, infrastructural development, education and healthcare delivery.

“He solicited support of lawmakers and Nigerians in addressing the country’s challenges, saying the time for lamentation was over.

“As we embark on implementing the 2025 Budget, our steps are deliberate, our decisions resolute, and our priorities, clear.

This budget reflects a renewed commitment to strengthening the foundation of a robust economy, while addressing critical sectors essential for the growth and development we envision.

“Security is the foundation of all progress. We have significantly, increased funding for the Military, Paramilitary, and Police Force, to secure the nation, protect our borders, and consolidate Government control over every inch of our national territory.

“The Government will continue to provide our security forces with modern tools and technology they need, to keep us safe. Boosting the morale of our men and women in the armed forces will remain our Government’s, top priority,” he added.

In his vote of thanks, Speaker of the House of Representatives, Rep Tajudeen Abbas said Government needs to reflect on the fiscal realities of Nigeria’s economy, especially the budget-population ratio of the country, when Nigeria is compared with other countries in Africa.

The Speaker also, noted that the Tinubu administration has taken bold and decisive steps to reform the economy in the past 18 months, stressing that removing fuel subsidies, unifying foreign exchange rates, and introducing innovative economic policies have laid a solid foundation for sustainable growth and development.

Speaker Abbas said: “While these reforms have demanded short-term sacrifices, they are acts of courage and patriotism.

History has shown that transformative progress often, begins with difficult decisions.”He cited examples from China’s market reforms, India’s liberalisation, and South Korea’s industrialisation which, he stated, affirm enduring benefits of such bold action.

“These lessons inspire confidence that Nigeria’s ongoing reforms will foster economic growth, reduce poverty, and ensure long-term prosperity,” he stated.

The Speaker also stated that the Tinubu administration’s reforms have, “disrupted the status quo, sparking resistance from vested interests,” noting that, “Yet these courageous measures underscore your resolve to prioritise the welfare of Nigerians.

”The Speaker stated that the proposed 2025 budget of N49.7 trillion, a 35 percent increase over 2024 is ‘ambitious and commendable.’ He said the projections of 4.6 percent Gross Domestic Product, GDP, growth, a crude oil price of $75 per barrel, an exchange rate of N1,500 to the Dollar, and oil production of 2.06 million barrels per day are bold, but achievable.

“However, Nigeria’s fiscal realities warrant critical reflection. Despite being Africa’s most populous nation with over 220 million people, our 2024 national budget of $36.7 billion remains modest, compared to countries like South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people; and Morocco, allocating $50 billion for its 37 million residents.

“While stating that stabilising prices, boosting agricultural productivity, expanding infrastructure, and investing in education, healthcare, and security, remain paramount priorities, he stressed that to strengthen national unity and build trust, it is essential for the Government to communicate its achievements effectively to the Nigerian people.

“As we approach 2025, we must embrace the realities before us with determination,” the Speaker noted, assuring that President Tinubu and the National Assembly are fully committed to supporting the successful implementation of the 2025 budget.

“This is not merely your budget; it is a national project requiring collaboration across all arms of Government.

The parliament will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution.“Mr. President, colleagues, let us take a moment to recognise and honour the profound sacrifices made by every Nigerian over the past year.

The removal of fuel subsidies, rising inflation, and adjustments to economic policies have created challenges.

“These sacrifices are necessary for building a stronger, self reliant, and prosperous nation. I call on all Nigerians to remain resilient and united in our collective pursuit of a brighter and better Nigeria,” he added.