The budget assumes an oil price of $73.96 per barrel, with an exchange rate of 700 naira per dollar, according to Budget Minister Atiku Bagudu. The plan also allocates 8.25 trillion naira for debt service and 7.78 trillion naira for salaries and pensions for civil servants.
Bagudu further shared that the economy is expected to grow at a rate of 3.76% in the coming year. However, the country is currently grappling with a 20-year high inflation rate of 27.72%, which is anticipated to moderate to 21% in 2024.
Nigeria has b een battling double-digit inflation since 2016, leading the central bank to raise interest rates significantly.
President Bola Tinubu faces mounting pressure to address economic challenges, which were exacerbated after removing a long-standing petrol subsidy, causing fuel prices to triple and the naira to depreciate by more than 50%, resulting in soaring prices in Africa’s leading oil producer and most populous nation.