Home Personal Finance Tinubu’s ‘Budget 2024’: Important Concerns to Consider

Tinubu’s ‘Budget 2024’: Important Concerns to Consider

Tinubu’s ‘Budget 2024’: Important Concerns to Consider

The Current State of Nigeria’s Economy and Expectations for the 2024 Budget

The Nigerian economy has been plagued by uncertainties and misfortunes, which have left many Nigerians feeling despair under the previous administration of President Muhamadu Buhari. The current administration led by President Bola Ahmed Tinubu inherited these economic challenges, further dampening the optimism surrounding the upcoming 2024 federal budget. The transition of power from the previous administration to Tinubu’s administration was marked by various twists and turns, making it difficult for Nigerians to embrace the prospects of change that a new budget could bring.

Despite the difficulties faced, it is crucial to acknowledge that President Tinubu now holds the position of president, and Nigeria relies on his ability to effectively manage the country’s affairs, including the task of fashioning the 2024 federal budget. This budget provides an opportunity to review and address the current socio-economic circumstances while planning for the future.

The process of preparing the 2024 budget has been underway since August 2023 when the Budget Office issued a Budget Call Circular to all Ministries, Departments, and Agencies (MDAs) to work towards presenting the budget to the National Assembly in October. This budget is especially significant as Tinubu’s campaign focus was centered around transforming the country’s economy and bidding ‘Goodbye to Poverty’.

It is important to remember that Tinubu’s campaign agenda, ‘Renewed Hope’, was a response to the dire socio-economic state of the country, characterized by economic distress, worsening insecurity, rampant corruption, and impunity. Tinubu’s reputation for confronting administrative challenges, demonstrated during his tenure as the Executive Governor of Lagos State, played a significant role in his electoral victory.

However, despite the high expectations placed on Tinubu and his administration, it is important to acknowledge that turning the country’s fortunes around will not happen overnight. The Nigerian population has a long history of dashed hopes and limited manifestations of positive change. President Tinubu has inspired hope through his oratory skills and efforts to build a capable and reputable supporting team. The success or failure of his leadership will largely depend on the individuals comprising his team.

Against this backdrop, Nigerians have heightened expectations for the 2024 budget. They hope for relief from the escalating prices of goods and services, fuel shortages, rising insecurity, and pervasive criminality. However, the reality is that Tinubu’s administration does not possess a magic wand to solve all of these challenges in a short period.

The 2024 budget proposes an ambitious expenditure of N26.01 trillion, equivalent to $34 billion at a conversion rate of N700 per dollar. The assumptions regarding oil prices and other parameters align with Nigeria’s budget tradition. However, the projected growth rate of 3.76% for the Gross Domestic Product (GDP) in 2024 raises concerns. Given that the economy’s real growth by the second quarter of 2023 was only 2.51% (a drop from 3.54% in the same period of 2022), the projection of 3.76% seems unrealistic and raises doubts about the administration’s claims of significant change.

Nigerians have seen numerous governments make promises but fail to deliver. The projected growth rate implies a drastic transformation in Nigeria’s socio-economic circumstances, which discerning Nigerians may find difficult to take seriously. The Tinubu administration should not expect the public’s response to be positive if it does not provide concrete evidence of tangible change.

In conclusion, Nigerians eagerly await the 2024 budget with hopes for a better future. President Tinubu and his administration face significant challenges in overcoming the country’s economic and social obstacles. While expectations are high, it is crucial to manage the public’s expectations and provide realistic solutions. By doing so, the administration can work towards delivering on its promises and fostering positive change in Nigeria.


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