Tinubu proposes N6.2tn rise in 2024 budget

• Published On: 17 July 2024 at 19:52

President Bola Tinubu, in a letter to the Senate, requested that the 2024 appropriation act be increased by N6.2 trillion, from N28.7 trillion to N34.9 trillion.

Nairametrics reports that Senate President Godswill Akpabio read Tinubu's letter publicly on the upper legislative house floor on Wednesday.

Tinubu advises in his letter that N3 trillion be set aside for current expenses and N3.2 trillion for infrastructure projects.

"Pursuant to Section 58 (2) of the Federal Republic of Nigeria's Constitution, as amended, I submit the above-mentioned bills to the Senate for consideration and passage.

"The appropriation act amendment bill seeks to amend the principal act to provide the sum of N3,200,000,000,000 for Renewed Hope Infrastructure Projects and other critical infrastructure projects to be undertaken across the country, as well as N3,000,000,000,000 to meet additional recurrent expenditure requirements necessary for the federal government's successful operation.

"They shall be funded by accruing to the federal government of Nigeria," Mr. Tinubu stated.

Tinubu also requested the National Assembly to modify the Finance Act of 2023, focusing on windfalls created by banks from "foreign exchange gains."

His request is to ensure a fair taxation policy in order to address profits accrued by banks as a result of foreign exchange rate volatility.

He stated that this will fund public welfare, education, healthcare access, and capital infrastructure development.

"Furthermore, the proposed amendments to the Finance Acts 2023 are required to a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare as well as welfare initiatives all which are components of the Renewed Hope Agenda," Tinubu told journalists.

Top Nigerian banks made a profit of N3.3 trillion in 2023, primarily on forex revaluation profits.

The 2024 appropriations bill was passed by the National Assembly in January 2024, exceeding President Bola Tinubu's initial budget of N27.5 trillion to N28.7 trillion.