Federal government, on Monday, proposed N26 trillion for the 2024 budget, which will be submitted to the national assembly before December 31.
Atiku Bagudu, minister of planning and budget, announced the budget proposal at the end of the Federal Executive Council the (FEC) meeting held on Monday, at the presidential villa, Abuja.
Bagudu said the council has approved the 2024-2025 medium-term expenditure framework (MTEF) and fiscal strategy papers (FSP).
He added 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 crude oil which is at $73.96 per barrel as well as an exchange rate of N700.
“Now, it was presented on the background of the commendable measures that have been taken since June in order to restore macroeconomic stability particularly the deregulation of petroleum prices, which we maintained that subsidies are gone and indeed the regulation of the foreign exchange market,” the minister said.
“So Council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda consumer credits, mortgages, 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.
“Council members acknowledged 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.”
FEC APPROVES CONTINUATION OF INHERITED ROAD PROJECTS, CONCRETE USAGE
During the briefing of the state house correspondents, Dave Umahi, minister of works and housing, said the Council approved the continuation of inherited road projects by the past administration which include bridges.
He said the council was made aware of a number of abandoned and ongoing projects — dating back 20 years — that don’t have proper funding.
Umahi said FEC was also informed of some new critical roads totalling 12,000 kilometres and 24 bridges.
“You know, FEC approved for the continuation of these inherited projects and the new proposals and directed that Federal Executive Council committee of chief of staff, minister for finance and coordinating minister of economy, minister for works, minister for planning and budget, GCEO/GMD of NNPLC, chairman of IRS and SSA on Tax Reform, to meet and come up with strategies to source for the funds and everything patterning to the funding,” Umahi said,
He said the council was advised to allow some ongoing road projects and new projects, to be redesigned on concrete to mitigate inflation.
“FEC approved that concept that most of the ongoing projects should be designed on concrete pavements depending on the level of completion and if you’re doing asphalt, there are also conditions for that,” Umahi said.
“FEC also approved the coastal road running from Phase 1 which runs from Lagos to Port Harcourt to Calabar. Phase2 runs from Sokoto to Ogoja. It was approved to be done on EBC + F, that is engineering procurement and construction plus financing.”
According to the minister, the council approved eight roads that were started by the past administration for concessions, having undergone necessary processes — and the financial closure should be reached in November.
Umahi said: “There were nine actually but one was pulled out, that is Lagos-Ota-Abeokuta, and that has been given to the Ogun State government based on their request that they should do the road on their own and they will follow the HDMI that is hardware development management initiative.”
“No refunds for that but they will do it and toll it. And new 25 roads were also approved for concessioning, which takes a very long time on the PPP model.
“Lastly, the PPP (Public, Private, Partnership) for Ijora park in Lagos. It was approved that it should be done on PPP. And it was won by Beta Nigeria Ltd, which was actually started by the last administration. So we just have to convey what they did to FEC which we got approval.
“Finally, the consultancy for NNPC and FIRS who oversee the projects funded by them was also approved today.”
The federal government said FEC meetings would only be held on Mondays going forward and the meetings may not be held weekly until there are pressing issues to discuss.
The Cable
