President Bola Ahmed Tinubu, on the 29th of November 2023, presented the 2024 budget before the joint session of the National Assembly. The budget is the largest in Nigeria’s history with a size of N27.5 trillion and a revenue projection of N18.32 trillion resulting in a budget deficit of N9.18 trillion. Revenue comprises oil revenue of N7.69 trillion, non-oil revenue of N3.52 trillion and Independent and other revenue sources of N6.86 trillion. The expenditure consists of capital expenditure of N8.72 trillion, non-debt recurrent expenditure of N9.92 trillion, debt service of N8.49 trillion and statutory transfer of
N1.38 trillion. These estimates imply that debt service is 30% of total expenditure and 95% of capital expenditure.
December 23, 2023
Nigeria Economic Update Issue 48
Related
Nigeria Economic Update (Issue 35)
Recent report in the media highlights that Nigerias
GDP has dropped to $296 billion in 2016, in contrast to the $481 billion
recorded in 20151 and Nigeria has lost its position as Africas
largest economy to South Africa. This conclusion was based on the computation
of GDP with current naira-dollar exchange rate. However, while the naira has
significantly lost its official value since the adoption of a flexible exchange
rate, estimating GDP merely with a single exchange rate figure (rather than its
yearly average) cannot be regarded as an appropriate method to conclude on Africas
largest economy.
Nigeria Economic Update (Issue 38)
Available data from NBS shows that Aviation sub-sector of the transport sector grew by o.15 percent in real terms in 2017Q2 down from 1.53 percent in 2017Q15. The decline is likely attributable to fall in year-on-year passenger and aircraft movement in the sub-sector, following increased air fare charges.
Nigeria Economic Update (Issue 30)
Power sector analysis shows an increase in
power generated by 3.01 percent from 2903.5mw to 2991.8mw between July 1, 2016
and July 8, 2016, with a peak of 3260.8mw on July 5, 2016. This is
however, still below the highest (5074.7mw) recorded in February, 2016. The
increase reflects improved use of hydro (water) for power generation.
The easing out of gas constraint occasioned by recent pipeline repairs have
also contributed to the increase in power generation. Improvements in power
generation would be sustained if hydro measures are complemented with
fast-tracked repairs on damaged gas channels and intensified efforts at
tackling pipeline sabotage.
Nigeria Economic Update (Issue 23)
Recent Data on Nigerias Real GDP growth rate (Year-on-Year)
declined by 2.47 percentage points, from 2.11 per cent in 2015Q4 to -0.36
percent in 2016Q11. This is the lowest GDP growth rate since 2004Q2
(-0.81 percent). The Oil sector continued to contract, as -1.89 percent growth
was recorded in 2016Q1. The negative growth witnessed in the oil sector was
likely driven by the fall in global oil prices by $9.732 and decline
in domestic crude oil production, relative to preceding quarter. Similarly, the
Non-oil sector witnessed a negative growth as it declined by 3.32 percentage
points from 3.14 percent in 2015 Q4 to -0.18 percent in 2016Q1. The underperformance in the non-oil sector was
driven by significant contractions in financial (by 17.69 percent), manufacturing
(by 8.77 percent), and real estate (by 5.48 percent) sub-sectors. Given that
the present economic fundamentals point to a likely recession in 2016Q2, the
government can stir economic activities by speeding up the budget
implementation process to spur growth in the non-oil sector and the economy at
large. More so, the domestic production shock in the oil sector needs to be
addressed to effectively leverage on the present marginal rise in crude oil
prices.