In a significant move, the Senate has approved the N28.7 trillion 2024 Appropriation Bill, marking an increase from the initially proposed N27.5 trillion by President Bola Tinubu, with an additional N1.2 trillion allocated. The approval followed the endorsement of the Senate Committee on Appropriation’s report during Saturday’s plenary session in Abuja.
According to Sen. Solomon Adeola, the committee chairman, “The adopted Medium Term Expenditure Framework and Fiscal Paper (MTEF/FSP) provided the basis for our budget adjustments, incorporating a $77.96 per barrel oil benchmark, 1.78 million barrels per day, and an exchange rate of 800 naira to the dollar, as opposed to the executive’s proposal of 750 dollars.”
The key highlights of the bill include a total aggregate expenditure of N28.7 trillion, with allocations of N1.7 trillion for statutory transfers, N8.7 trillion for recurrent expenditure, and a significant N9.9 trillion designated for capital expenditure.
Acknowledging the collaborative effort between the committee and the executive, Adeola emphasised the need for timely submission, citing the late presentation of the 2024 Appropriation Bill, which contravened the Fiscal Responsibility Act’s stipulation of a three-month lead time.
In his appraisal, Adeola pointed out revenue inconsistencies in government-owned enterprises (GOEs), removal of agency personnel costs from the federal payroll, and inadequate funding in various government Ministries, Departments, and Agencies (MDAs).
The committee’s recommendations focused on enforcing fiscal responsibility and urging compliance with existing laws governing government agencies. Adeola emphasised the need for agencies removed from the federal budget to bolster their revenue generation, fund themselves, and contribute more to the Consolidated Revenue Fund (CRF).
Additionally, he urged targeted allocations to underfunded MDAs, stressing the importance of sustaining increased capital over recurrent expenditure to drive developmental initiatives across the nation. The Senate’s decision underscored the criticality of fiscal prudence and adherence to regulations for effective economic governance.
