Tinubu Proposes ₦6.2 Trillion Increase to 2024 Budget for Critical Infrastructure and Recurrent Expenditures

In a significant move to boost Nigeria’s economic and infrastructural development, President Bola Tinubu has requested the National Assembly to amend the 2024 Appropriation Act and the 2023 Finance Act, proposing an increase of ₦6.2 trillion to the national budget. This request was communicated in a letter addressed to the President of the Senate, Godswill Akpabio, and read at the plenary session on Wednesday, July 17, 2024.

Details of the Budget Amendment Request

President Tinubu’s letter cites Section 58, subsection two of the Nigerian Constitution, which empowers the President to seek amendments to existing laws. The proposed amendment to the Appropriation Act aims to allocate an additional ₦3.2 trillion for Renewed Hope infrastructure projects and other critical infrastructure across the country. Another ₦3 trillion is earmarked to cover further recurrent expenditure necessary for the Federal Government’s proper operation. These expenditures are expected to be funded by revenue accruing to the Federal Government.

Focus on Infrastructure and Recurrent Expenditures

The proposed increase underscores the administration’s commitment to enhancing Nigeria’s infrastructure and ensuring the smooth running of government operations. The Renewed Hope infrastructure projects are central to this vision, aiming to improve transportation, energy, and public amenities nationwide. The additional funds for recurrent expenditures will support essential government functions and services, reinforcing the administration’s dedication to effective governance.

Finance Act Amendments and Windfall Tax on Banks

In addition to the budget amendment, President Tinubu has proposed changes to the 2023 Finance Act. These amendments include imposing a one-time windfall tax on foreign exchange gains realized by banks in their 2023 financial statements. The revenue generated from this tax will be directed toward funding capital infrastructure development, education, healthcare access, and public welfare initiatives. This move aligns with the administration’s renewed hope agenda, focusing on sustainable development and improving the quality of life for all Nigerians.

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Legislative Progress

As of the time of this report, the Bill to Amend the Appropriation Act, 2024, authorizing the issuance of the additional ₦6.2 trillion from the Consolidated Revenue Fund of the Federation, has successfully passed its second reading in the House of Representatives. Similarly, the Bill to Amend the Finance Act, 2023, to impose the Windfall Tax on Banks, has also scaled the second reading, signaling strong legislative support for these initiatives.

Context and Implications

This budget amendment comes after President Tinubu assented to the original ₦28.7 trillion 2024 Appropriation Bill on January 1, 2024. The substantial increase reflects the administration’s proactive approach to addressing the nation’s critical infrastructure needs and operational demands. By seeking additional funds, the government aims to accelerate development projects and ensure that essential services are adequately funded.

Conclusion

President Bola Tinubu’s proposal to raise the 2024 budget by ₦6.2 trillion demonstrates a strategic effort to advance Nigeria’s economic and infrastructural goals. The emphasis on infrastructure projects and recurrent expenditures highlights the administration’s commitment to sustainable development and effective governance. As the legislative process continues, the successful passage of these amendments will be crucial in realizing the administration’s vision for a more prosperous Nigeria.

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