Tinubu seeks increase of 2024 budget by N6.2 trillion

• As Reps passes Bill to amend 2024 Appropriation Act

By Christiana Ekpa

The President Bola Tinubu on Wednesday wrote the House of Representatives seeking to increase the 2024 Appropriation Act by N6.2 trillion.

This was just as the  House passed the supplementary budget bill for 2024, totaling N6.2 trillion, for second reading.

The bill, which was presented by House Leader Julius Ihonvbere, allocates N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure for the year ending December 31, 2024.

President Bola Tinubu had in May 29, 2024 pledged his readiness to transmit a supplementary budget to the National Assembly for consideration and passage.

On June 26, 2024,  the President wrote to the parliament seeking the extension of the implementation timeline of the capital component of the 2023 Appropriation Act and the 2023 Supplementary Appropriation Act. Both prayers were granted.

The President’s letter was read by the Speaker Tajudeen Abbas during plenary on Wednesday.

Following the amendment by the House, the move would increase the 2024 budget to N34.9 trillion from an initial N28.7 trillion signed by the President on January 1 this year.

The letter sought an amendment to the budget to provide for N3.2 trillion for infrastructure projects and N3 trillion for recurrent expenditure.

He wrote, “Pursuant to section 58 (2) of the constitution of the Federal Republic of Nigeria as amended, I forward herewith the above named bills for consideration and passage by the House of Representatives.

“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 and the sum of N3,000,000,000,000 to meet further recurrent expenditure requirements necessary for the prosper operation of the federal government.

“They shall be funded by accruing to the Federal Government of Nigeria.”

Tinubu also asked the House to amend the Finance Act of 2023 to tax windfalls gotten by banks owing to foreign exchange gains.

“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,” he said

This was as the House passed a Bill for the amendment for a second reading in line with the President’s request.

It was titled, “A Bill for an Act to Amend the Appropriation Act, 2024 to authorise the issue from the Consolidated Revenue Fund of the Federation the total sum of N3,200,000,000,000.00 (three trillion two hundred billion, Naira) only is for Capital Expenditure and the sum of N3,000,000,000,000.00 (three trillion, Naira) only is for recurrent expenditure for the year ending on the 31st day of December, 2024 (HB. 1610)”

Also, the Bill for an Act to Amend the Finance Act, 2023 to impose and charge Windfall Tax on Banks and Provide for the Administration, scaled second reading.

The House also considered and approved N1.9 trillion budget for the Niger Delta Development Commission (NDDC).

Of this sum, N38,545,349,193 is earmarked for personal expenditure; N29,246,506,753 is for overhead expenditure; N8,785,574,130 for internal capital expenditure; N835,222,569,924 for development projects; while N1,000,000,000,000 is for Legacy Projects Funded by Borrowing for the year ending 30 April , 2025.

The report of the Committee on NDDC presented by Hon. Erhiatake Ibori–Suenu which was considered and approved reads thus, “That the House do consider the Report of the Committee on Niger Delta Development Commission (NDDC) on the issue from the Statutory Revenue Fund of the Niger Delta Development Commission the total sum of N1,911,800,000,000 (one trillion, nine hundred and eleven billion, eight hundred million naira), only out of which the sum of N38,545,349,193 (thirty–eight billion, five hundred and forty–five million, three hundred and forty–nine thousand, one hundred and ninety–three Naira) only is for Personnel Expenditure, while the sum of N29,246,506,753 (twenty–nine billion, two hundred and forty–six million, five hundred and six thousand, seven hundred and fifty–three Naira) only is for Overhead Expenditure, N8,785,574,130 (eight billion, seven hundred and eighty–five million, five hundred and seventy–four thousand, one hundred and thirty Naira) only is for Internal Capital Expenditure, while the sum N835,222,569,924 (eight hundred and thirty–five billion, two hundred and twenty–two million, five hundred and sixty–nine thousand, nine hundred and twenty–four, Naira) only is for Development Projects,

while the sum of N1,000,000,000,000 (one trillion, Naira) only is for Legacy Projects Funded by Borrowing for the year ending 30 April , 2025 and approve recommendation therein.”