Nigeria’s 2024 budget, signed by President Bola Tinubu, has sparked both optimism and apprehension as the country seeks economic revival amid ongoing challenges.
The budget, which includes priorities such as defence and internal security, job creation, macroeconomic stability, improved investment environment, human capital development, poverty reduction, and social security, has been increased in size from N27.5 trillion to N28.7 trillion.
However, the feasibility of the budget remains uncertain due to global economic headwinds and Nigeria’s fiscal constraints.
The political will and financial discipline to implement the budget in the overall interest of the people should be at the core, as the realization of the budget would require sacrifices from the leaders. Projections of the budget’s inflation rate of 21.4% raise concerns, with some financial experts arguing that the increase in the budget size will render the inflation rate projection unrealistic.
The 2024 economic performance is also influenced by policy changes and budget efficiency, with low GDP growth, high exchange rates, high-interest rates, high energy costs, and an unfriendly business environment.
The scepticism surrounding public funds and borrowing by the political elite has hindered the growth of medium and small businesses in Nigeria. However, BMI, a Fitch Solution Company, predicts a modest increase in real GDP growth to 2.9% in 2024, with the Dangote refinery operations billed to start in Q1 2024 reducing imports and increasing trade surplus.
The 2024 budget offers both warning and cautious hope, but with prudence, accountability, and strategic investments, Nigeria can pivot its economy for a sustainable future.
Leave A Comment