The Federal Executive Council (FEC) has proposed the sum of N26.01 trillion for the 2024 fiscal year to be submitted to the National Assembly.
The government said it was working towards ensuring that the January to December budget circle is maintained and that the 2024 budget is passed and signed before December 31, 2023.
The minister of Budget and Planning, Atiku Bagudu, made the disclosure at the end of Council meeting presided over by President Bola Tinubu at the Council Chamber, Presidential Villa, Abuja.
Briefing State House correspondents at the end of the FEC, Bagudu said Council has approved the 2024-2026 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Papers, (FSP).
He explained that the executive is required by the Fiscal Responsibility Act to present to the National Assembly ahead of a budget presentation, a document which will provide the medium term economic outlook for the economy.
He said FEC made assumptions about the reference price for the price of crude oil which is at $73.96, exchange rate is put at $700, oil production of 1.78 million barrels per day. Debt service N8. 25 trillion while inflation is put at 21 per cent and GDP growth at 3.76 per cent .
He said, "Now, it was presented on the background of the commendable measures that have been taken since June in order to restore macroeconomic stability by particularly the deregulation of petroleum prices, which we maintained that subsidies are gone and indeed the regulation of the foreign exchange market.
"So Council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda consumer credits, mortgages, mortgage, reversed or dismissed institution as well as funding the newly aligned institutional changes particularly ministries with specific functions that are able to generate growth so that would be better for our country.
"The council members acknowledge the medium term expenditure framework, and it is agreed that we can go ahead to the next step of consultation and presentation to the National Assembly."
He explained that "The Medium Term Expenditure Framework is a requirement of the Fiscal Responsibility Act. So as early as three documents, this Fiscal Responsibility Act is for the years 2024 to 2026.
"The several hundred dollars reference price assumes optimism that investment flows will continue to come in. Given all the engagements, given all the positive tractions. We are seeing from investors from the engagement led by Mr. President personally, two different countries, in particular India, UAE and France, the engagements led by the coordinating Minister of the Economy engagement led by the trade and investment minister and indeed other ministers.
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"So, now there is an increasing engagement made by the governor of the Central Bank of Nigeria, and indeed all other ministers. So we believe that these inflows will help us to clear the backlog and the exchange rate will begin to reflect a stronger value than the current weakness.
"There was a question on the assumptions. I spoke about a number of assumptions. The assumptions include oil price benchmark, which I said for 2024 we are assuming 73.96, oil production of 1.7 8 million barrels a day exchange rate of $700.
"Then the inflation of 21 per cent and GDP growth rate of 3.76 percent . The aggregate expenditure is estimated at 26.01 trillion Naira for for the 2024 budget which includes statutory transfers of N1.3 trillion, non debt recurrent expenditure of N10.2 6 trillion debt service estimated at N8.2 5 trillion and as well as N7.78 trillion being provided for personnel and pension cost.
"Debt service increased 22 point N7 trillion with the expectation of scrutinising the federal government debt at nine percent.
"So that is easily about N2.1 trillion. This describes that equally, personnel costs went up because of transfers under the agreement with labour."
Bagudu briefed the media alongside his colleagues from the Ministry of Information and National Orientation, Mohammed Idris, Minister of Finance and Coordinating Minister of Economy, Wale Edun, Works Engr. Dave Umahi, Industry, Trade and Investment, Doris Uzoka-Anite, Labour and Employment, Simon Lalong as well as the Minister of State for Labour, Nkeiruka Onyejecha.
