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Tuesday, April 23, 2024

Senate calls for revision of N28.77tn 2024 budget amid naira-dollar volatility

In Light of Currency Instability, National Assembly Urged to Reassess Fiscal Plan Passed by President Tinubu

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The Nigerian Senate has advocated for a thorough reassessment of the N28.77 trillion 2024 budget passed by the National Assembly, citing the persistent depreciation of the naira against the US dollar as a primary concern.

Amid ongoing economic fluctuations, the Senate emphasized the necessity of revisiting the budgetary framework to align with evolving currency dynamics and safeguard fiscal stability.

Initially endorsed by President Bola Tinubu on January 1, the harmonised 2024 budget Appropriation Bill underwent a significant increase, surging from N27.5tn to N28.7tn, reflecting adjustments made by the National Assembly.

The Senate’s decision to revise the exchange rate benchmark from N750 per dollar to N800 per dollar underscores the legislature’s proactive response to mitigate potential financial risks and ensure prudent fiscal management.

Solomon Adeola, Chairman of the Senate Committee on Appropriation, elucidated the rationale behind the budget augmentation, citing the widening disparity between official and parallel market exchange rates, which prompted a reevaluation of budgetary parameters.

In light of prevailing economic conditions, Senator Adeola stressed the imperative of recalibrating the budget framework to reflect current market realities, particularly amidst the escalating naira devaluation.

Addressing the pressing need for budgetary recalibration, Senator Adeola underscored the importance of conducting internal assessments to ascertain the viability of existing fiscal projections, particularly in determining the landing cost of petroleum products against the backdrop of fluctuating exchange rates.

Emphasizing the need for prudence and foresight, Senator Adeola highlighted the potential implications of currency volatility on budget execution and underscored the importance of strategic planning to optimize resource allocation and mitigate financial uncertainties.

The Senate’s call for a comprehensive review of the 2024 budget underscores the imperative of adaptive governance in navigating Nigeria’s evolving economic landscape, reaffirming the legislature’s commitment to fostering fiscal resilience and transparency in national governance.

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