The Federal Government of Nigeria has approved a supplementary budget of N2.18 trillion for the fiscal year 2023. The supplementary funding is intended to address urgent issues, including national defense, security, and welfare packages for workers and the general public.
The breakdown of the supplementary budget includes:
1. N605 billion allocated to national defense and security to sustain and accelerate security efforts.
2. N300 billion allocated for repairing bridges, including the Eko and Third Mainland bridges, as well as construction, rehabilitation, and maintenance of various roads before the rainy season.
3. N210 billion provided for the payment of wage awards, covering the salaries of approximately 1.5 million federal government employees for September, October, November, and December 2023.
4. N400 billion approved for cash transfer payments, which includes funds for two months of cash transfers to 15 million households.
5. N200 billion allocated for seed, agricultural input, supplies, and agricultural infrastructure to support expanded production.
6. N100 billion set aside to improve infrastructure in the Federal Capital Territory.
7. N18 billion allocated to the Independent National Electoral Commission for the conduct of elections in Bayelsa, Kogi, and Imo in November.
8. N5.5 billion designated for the launch of the student loan scheme in January 2024.
9. N8 billion for the take-off grant of new ministries, and N200 billion for capital supplementation to address urgent requests from various parts of the country.
The government plans to fund these additional expenditures from the revenues generated from its recent policies, such as the removal of fuel subsidies. It has also ordered the Debt Management Office (DMO) to raise the nation’s domestic borrowing ceiling to source additional funds from the debt market as needed.
The Minister of Budget and Economic Planning, Abubakar Bagudu, emphasized the government’s commitment to maintaining the January-December budget implementation cycle and the wisdom of both the legislative and executive branches in the budgeting process. However, Nigeria’s growing debt and debt servicing costs remain significant concerns.
