Tinubu Seeks N6.2 Trillion Increase in 2024 Budget

President Bola Tinubu has called on the national assembly to raise the 2024 appropriation act by N6.2 trillion.

This request was announced by Senate President Godswill Akpabio on Wednesday. The increase would push the 2024 budget from the initial N28.7 trillion, signed into law on January 1, to N34.9 trillion.

The additional funds are aimed at infrastructure projects and recurring expenses.

Specifically, Tinubu has proposed allocating N3.2 trillion to infrastructure projects under the Renewed Hope Infrastructure initiative and another N3 trillion to cover further recurring expenditure required for the smooth operation of the federal government.

“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,” Tinubu said.

“The appropriation act amendment bill seeks to amend the principal act to provide the sum of N3,200,000,000,000 for Renewed Hope Infrastructure Projects and other critical infrastructure projects to be undertaken across the country and the sum of N3,000,000,000,000 to meet further recurrent expenditure requirements necessary for the proper operation of the federal government.”

Additionally, Tinubu urged the national assembly to revise the Finance Act of 2023 to include a one-time windfall tax on foreign exchange gains realized by banks. This tax would fund capital infrastructure development, education, healthcare, and welfare initiatives, all part of the Renewed Hope Agenda.

“Furthermore, the proposed amendments to the Finance Acts 2023 are required to impose a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare as well as welfare initiatives all which are components of the Renewed Hope Agenda,” he said.

On September 12, 2023, the Central Bank of Nigeria (CBN) directed banks to cease using gains from the naira revaluation for dividend payments or operations. The CBN noted that banks could profit significantly from the FX regime change, which unified multiple FX rate systems into the investors’ and exporters’ window on June 14, resulting in substantial naira depreciation and market volatility.