ABUJA, Nigeria – Mediaage NG News – Nigerian President, Bola Tinubu on Wednesday delivered his first budget and announced his government plans to spend 27.5 trillion naira ($34.85bn; £27bn) in the new financial year.
This is his first budget presentation since assuming office last May, as the West African nation faces a deepening cost of living crisis.
Mr. Tinubu, while urging for patience after inflation skyrocketed, following an ambitious set of reform policies, said the plans would attract investment, offering “renewed hope” during tough economic times.
After winning disputed elections with 37% of the vote back in May, he shocked many Nigerians in his inaugural address when, in an off-the-cuff remark, he scrapped a decades-old fuel subsidy.
The move led to a sharp rise in the price of fuel and other goods, worsening the cost of living crisis for many.
The president also scrapped foreign exchange controls, which also contributed to pushing up inflation to its highest levels in nearly two decades, at 25%.
The value of the naira fell, increasing the cost of imports and making it more difficult to pay off international loans.
But Mr Tinubu stood by his decision, saying the fuel subsidy had proven to be “harmful” to the economy.
He insisted the budget’s impact on the cost of living crisis would be temporary and has repeated calls for patience, saying the moves would benefit the country in the long term and attract more foreign investment.
Mr Tinubu said his “Budget of Renewed Hope” would guarantee macro-economic stability, lead to “job-rich” growth and reduce the budget deficit.
The government’s spending priorities included improving security and infrastructure, as well as taking measures to ease the cost of living crisis, he added.
Mr Tinubu projected higher oil production and tax collection would boost government revenues and allow his administration to borrow less.
He added that the economy was expected to grow by at least 3.76% in 2024, and inflation would be at around 21.4%.
It stood at 27.3% in October, up from 26.72% in September, according to official statistics.
The economic crisis in Nigeria has led to a huge exodus of young professionals who have struggled to find jobs.
The budget will have to be approved by lawmakers before it comes into effect.