President Bola Tinubu last week proposed a budget for the 2024 fiscal year, amounting to trillions of naira, sparking discussions on Nigeria’s spending plans for the upcoming year.
The president outlined that the budget aims to maintain macroeconomic stability, reduce the deficit, and increase capital spending in line with the administration’s eight priority areas.
The proposed budget document shows that 10 ministries are set to receive a combined total of N20.7 trillion, accounting for 86.3 percent of the overall N24.07 trillion budget.
The 10 ministries include the federal ministry of finance, budget and planning; the ministry of defence, the ministry of education, and the ministry of health.
Others include the ministry of police affairs, the ministry of works and housing, the ministry of interior, the ministry of agriculture, and the ministry of Niger Delta.
The huge allocation offers an inkling of the incumbent government’s priorities and focus for the coming year.
The 2024 budget proposal outlines spending plans for 55 MDAs. This includes N7.87 trillion allocated for personnel expenses of federal civil servants, covering salaries, pensions, and gratuities.
Furthermore, N9.97 trillion is budgeted for overhead expenses and N6.23 trillion for capital expenses.
Here is a breakdown of the budget of the top 10 ministries with the highest allocation.
FEDERAL MINISTRY OF FINANCE
Managing all federal revenues and expenditures in Nigeria, the federal ministry of finance, will get the highest allocation of N9.33 trillion in the 2024 budget.
According to the appropriation bill, the ministry plans to spend N20.95 billion for personnel costs, N8.49 trillion for overhead expenses, and N808.92 billion for capital expenditure.
While the significant allocation may come across as the government’s effort to strengthen the ministry’s capacity, the country is still plagued by weak revenue generation as the ministry is responsible for some revenue-generating parastatals and making policies to enhance Nigeria’s fiscal space.
MINISTRY OF BUDGET AND ECONOMIC PLANNING
With plans to spend N4.45 trillion in the 2024 fiscal year, the ministry of budget and economic planning has the second-highest allocation in the proposed budget.
This amount is comprised of N1.71 trillion for personnel, N858.96 billion to be spent on overhead cost, and N1.88 trillion for capital expenditure.
MINISTRY OF DEFENCE
Third on the list of big spenders is the ministry of defence, which serves as the administrative backbone of the Nigerian Armed Forces, and ensures they remain empowered and fully prepared to defend the nation.
The ministry has a N1.58 trillion allocation in the proposed budget, with N1.15 trillion earmarked for personnel cost, N116.54 billion for overhead, and N308.24 billion for capital expenditure.
MINISTRY OF EDUCATION
According to the budget, the ministry intends to spend N1.44 trillion in pursuit of its mission to use education as a tool for fostering the development of all Nigerian citizens to their full potential.
From the education ministry’s budget, personnel cost will consume N1.04 trillion, while overhead and capital expenditure were allocated N72.12 billion and N330.36 billion respectively.
MINISTRY OF HEALTH AND SOCIAL WELFARE
The ministry, under the leadership of Muhammad Ali Pate, said it will spend N1.23 trillion in the 2024 fiscal year.
A breakdown of the fund shows that N771.56 billion will go to personnel expenses, while N21.76 billion and N434.79 billion were budgeted for overhead and capital expenditure, respectively.
MINISTRY OF POLICE AFFAIRS
A total of N938.74 billion has been proposed for the 2024 financial year, out of which N806.72 billion is for personnel, N62.39 billion is for overhead, and N69.62 billion is for capital expenditure.
MINISTRY OF WORKS
Steered by Dave Umahi, the minister of works and former governor of Ebonyi state, the minister of works, the ministry proposed a budget of N657.23 billion.
A larger chunk of the budget (N612.85 billion) will go to capital expenditure, as the ministry wants to spend N16.68 billion on personnel expenses and N22.69 billion on overhead.
MINISTRY OF INTERIOR
The ministry of interior was allocated N461.99 billion in the 2024 budget. N321.33 billion was proposed for personnel expenses, overhead would get N41.22 billion, and N99.45 billion was for capital expenditure.
MINISTRY OF AGRICULTURE AND FOOD SECURITY
Ministry of agriculture and food security, under the leadership of Abubakar Kyari, was allocated N362.94 billion.
The ministry intends to deploy N102.09 billion for personnel expenses. The overhead expenses will cost N8.15 billion, and N252.69 billion will be used for capital expenditures.
MINISTRY OF NIGER DELTA
In the 2024 proposed budget, the ministry has an allocation of N346.12 billion.
The Niger Delta ministry focuses on the infrastructural development, environmental protection and empowerment of youths in the oil-rich Niger Delta region.
The budget for the ministry’s personnel cost is N326.89 billion, overhead stands at N1.17 billion, and N18.07 billion is set aside for capital expenditures.
