Nigeria 2024 FY Budget Analysis

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Nigeria 2024 FY Budget Analysis by Dr Kenny Odugbemi

Expenditure framework
Revenue framework

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Economic vitals

Increase in Capital expenditure by 11.4%

Reduction in Recurrent expenditure
Fy2023-6.15%
Fy2024-3.8%

Revenue framework
NIPC has given 3 year tax waiver to 42 companies for first level mortarium

Securitization (overdraft) of ways and means
Normalized debt of Government now transfer to Debt Management Office to be profile correctly sum of N7.3trn bringing our total debt to N94.7trn

Note
Relying less on borrowing but taking hold of different revenue streams with a pledge to be right on time with funding

Private sector initiatives

Economic growth goes beyond budget appropriation, other important critical phenomena including but not limited to the following
Policy implementation
Macroeconomics variable s
Regulatory framework
Structural formation

Key drivers of economic growth

Revenue framework
These are sharing formula from the federation account
✓Federal government- 52%

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✓State government- 26%
✓Local government-22%
Total -48%

*it worthy to state these two revenues have no meaningful collaboration whilst local government are held in hallow by State government

*Federal government- tertiary intervention
*State government
Secondary intervention
*Local government
Primary intervention

✓Investment frame through SPV by Private investors
✓Consumption
This is driven by purchasing power which is rather very low at the moment

✓Export frame work
This is wealth creation where goods are produced and exported overseas to earn forex
It is highly regrettable that our export and import ratio is 1:10 this is a serious forex leakage as we are extremely too dependent which needs urgent structural reform

We should ensure that other components must not jeopardize with intent to clean up following statutory provision moving from 5% -15% for ways and means to reduce risk on macroeconomics variable charges(forex& inflation)

Major revenue source (oil)

Oil is a major factor with insufficient disclosure

All MDA’s are generating revenue but must not hurt the following
Investments of all sorts
Removal of all trade restrictions
Ensure ease of doing business local or foreign hence all empathy is “Revenue”

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Regulatory
This should enable our system to seamlessly operate without abuse of power with good accountability for application fee management

Manufacturers will require the following to improve on their productive capacity

Exchange rate depreciation
Energy cost
Tax waivers
High import duty

Social reform

Restructure and recalibrate our toxic trade policies

Social consequences reform
Government must recalibrate cost of living -food, energy, health, accommodations and energy cost

Agriculture
The government must ensure that 500,000hectares of Maize, Rice and other cereal to all six geopolitical zone, not concentrating in Niger state on solitary terms.

We need to liberalize components of all export with reduction of taxes and levies to aid their production capacity

Fy 2024-Economic indicators

GDP-2.45%
Per capital income-$1,753
Inflation-29%
Reserve $32bn
External debt-$42.59

Federal government to optimize revenue collection in collaboration with State government

Social indicators

Consumers are pressured directly and indirectly
Collected sums of N3trn through different audacious executive order, legitimize to law across all sectors
Consumers in return got N650b through different levels of social intervention such as palliatives

Federal government still has major financial leakage

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Forex injection experience rise of 45%

Food security
Inflation basket
Rice/bag-N70,000
Bean/bag-N42,000
Flour/bag-N47,000
Bread-N1,200-N1,600

Social menace-Yaba-psychiatry
Outside of depression, suppression intimidation and direct exploitation by unpatriotic political leaders in public offices have now increased by 100% percent of normal patronage, mainly due to economic hardship.

Conclusion
Federal government- must restructure and recalibrate existing policies
Establish and profile out debt in local and foreign
Develop and fund pockets of projects to alleviate our infrastructure decadence by improving more intermodal forms of transportation
GDP to be raised to 2.7%
There must be a renewed collaboration between three tiers of government
Current vital
Overhead inflation 30%
Food inflation 31%

Infrastructure
Government must leverage more on PPP to construct major commercial roads
Dangote- Apapa express way
MTN-Onitsha-Enugu

All must be value for reasonable tax waiver

BUA promised to follow the aforementioned activities

Government at three levels requires citizen collaboration, who must at all time demand for real accountability at all levels

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Media enthusiast and music lover on a journey to becoming a global media mogul. I am taking it a step at a time.

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