2024 Budget of Renewed Hope: A Vision for Nigeria’s Economic and Social Development, by Jamilu M Ja’afaru
The proposed 2024 Budget, themed the “Budget of Renewed Hope,” shows a promising direction for Nigeria’s economic and social development. The budget reflects the administration’s commitment to addressing key challenges such as economic stability, human capital development, infrastructure, security, and poverty reduction.
1. *Economic Stability: * The administration’s decision to end the fuel subsidy regime is a bold step towards fiscal discipline and towards freeing resources for more critical sectors of the economy. However, the impact of this decision on the inflation rate and the average Nigerian needs to be closely monitored.
2. *Infrastructure: * The proposed budget’s emphasis on completing critical infrastructure projects, which lowers the cost of doing business and living, is commendable. However, the actual execution of these projects and their impact on economic growth should be scrutinized.
3. *Security: * The focus on defense and internal security is crucial, given the current security challenges in the country. However, it will be important to ensure that the funds allocated are used effectively and transparently.
4. *Human Capital Development: * Prioritizing human development, especially for children, is a significant step towards long-term socio-economic development. The introduction of a more sustainable model for funding tertiary education, like the Student Loan Scheme, is a progressive move, but implementation will be key.
5. *Macroeconomic Indicators: * The forecasted economic growth of 3.76 per cent and an inflation rate of 21.4 per cent in 2024 shows a positive, albeit challenging, outlook. The administration’s plan to coordinate fiscal and monetary policy measures to contain rising domestic prices must be effective to prevent an adverse effect on the economy.
6. *Debt Servicing and Deficit: * The projected debt service of 8.25 trillion Naira, which is 45% of the expected total revenue, raises concern over the country’s increasing debt profile. The budget deficit of 9.18 trillion Naira, although lower than the previous year, still indicates a need for fiscal discipline and improved revenue generation.
7. *Environmental Commitment: * The focus on commitment to a greener future and the emphasis on public-private partnerships for big-ticket infrastructure projects in energy, transportation, and other sectors is a progressive move that not only addresses environmental concerns but could also attract foreign investments.
8. *Social Security: * The expansion of the National Social Safety Net project to provide targeted cash transfers to the poor and vulnerable is a laudable initiative. However, the government must ensure the effective implementation of this initiative to achieve the desired outcome.
In conclusion, while the proposed budget shows a renewed commitment to addressing key socio-economic challenges, the effectiveness of these plans rests on the government’s ability to ensure transparent and efficient implementation. It would also be advisable for the government to explore ways to increase revenue generation, reduce reliance on borrowings, and ensure fiscal discipline.
Jamilu Ja’afaru is a Social Development Specialist and writes from Abuja.
