The president of Nigeria announced an ambitious reform agenda on Wednesday and unveiled his first budget since taking office, citing concerns about national security and economic growth among them.
President Bola Ahmed Tinubu stated that the two main pillars of his 27.5 trillion naira ($34.84 billion) budget proposal for 2024 were luring investment and resolving Nigeria’s cost-of-living crisis in a speech to lawmakers in the nation’s capital, Abuja.
“The proposed budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security,” he said.
Nigerians are facing a tripled fuel price increase and higher food costs following President Tinubu’s decision to end a fuel subsidy and introduce the naira currency.
However, Tinubu claims these are temporary and will attract more foreign investment to the country. He also plans to expand a scheme for targeted cash transfers to vulnerable households.
“Our government remains committed to broad-based and shared economic prosperity,” he said.
Nigeria’s inflation has risen to over 27% in the past year, with the government expecting it to decrease to 21.4% in 2024 and a 3.76 percent economic growth.
The country also faces significant security challenges from jihadists and bandit militias.
“Defence and internal security are accorded top priority,” said Tinubu. “Internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property and investments across the country.”
He stated that by 2024, the nation hopes to lower its budget deficit from approximately 6.1 percent of GDP this year to slightly less than 3.9 percent.
The budget plan still needs to be approved by Parliament, which should happen before the year ends.