The budget is built on the assumption of an oil price set at $73.96 per barrel and an exchange rate of 700 naira per dollar, as stated by Budget Minister Atiku Bagudu.
Within the plan, provisions are made for 8.25 trillion naira to cover debt servicing and 7.78 trillion naira for salaries and pensions of civil servants.
Bagudu also indicated that the economy is projected to experience a growth rate of 3.76% in the upcoming year. However, Nigeria currently contends with a 20-year high inflation rate of 27.72%, which is expected to ease to 21% by 2024.
Since 2016, Nigeria has grappled with persistent double-digit inflation, prompting significant interest rate hikes by the central bank.
President Bola Tinubu is facing mounting pressure to address economic challenges. The removal of a long-standing petrol subsidy has exacerbated these issues, causing a tripling of fuel prices and a depreciation of the naira by over 50%, resulting in soaring prices in Africa’s leading oil-producing and most populous nation.