President Bola Tinubu is preparing to present a N6.6 trillion supplementary budget to the National Assembly after its resumption on July 2, according to Senate spokesperson Yemi Adaramodu.
He noted that the executive is still finalizing the budget's details.
"The budget will be sent any time we resume after the Sallah recess. I believe the bill and other important executive communications will be sent to the National Assembly when we resume in July. The budget size is N6.6 trillion," Adaramodu told PUNCH.
When questioned about the budget, particularly in light of the Minister’s statement that it would fund part of the coastal road, Adaramodu reaffirmed the amount, saying, "The budget size is N6.6 trillion."
Reports indicate that President Tinubu is likely to borrow an additional N6.6 trillion in 2024. This move is linked to the anticipated allocation of 5.4 trillion naira (£3.7 billion) to maintain fixed petrol prices, a 50% increase from 2023, according to a draft document seen by Reuters.
The "Accelerated Stabilisation and Advancement Plan" (ASAP), developed by the finance ministry alongside private sector executives and economists, seeks to tackle the issues stemming from reforms aimed at boosting economic growth. Last May, President Tinubu removed a costly petrol subsidy, a reform praised by investors. However, this led to tripled petrol prices, higher transport costs, and increased inflation, causing discontent among motorists.
Despite pressure from labor unions over the rising cost of living, Tinubu has vowed not to reverse his policies. The finance ministry projects that fuel subsidy expenditures will reach 5.4 trillion naira by the end of 2024, up from 3.6 trillion naira in 2023 and 2.0 trillion naira in 2022.
Presidential aide Bayo Onanuga confirmed that Tinubu has received the draft proposal, emphasizing that it is still a draft with suggestions for economic improvement.
Analysts suggest that if Tinubu approves the policy, he could use executive orders to implement its recommendations, which include plans for the power, oil and gas, agriculture, and healthcare sectors, along with support for businesses.
Nigeria's economy, growing at around 3%, falls short of the 6% annual expansion target Tinubu set when he took office. The finance ministry's policy document proposes selling equity in government refineries by May 2026, increasing excise duties on beverages, and introducing taxes on single-use plastics and sweetened beverages to generate revenue.
Additionally, the government aims to increase oil production to approximately 2 million barrels per day by December, up from the current 1.4 million, to boost cash flow and close revenue gaps.
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politics