ABUJA, July 17 (Reuters) – President Bola Tinubu has urged Nigeria’s Senate to approve an additional 6.2 trillion naira ($4 billion) in spending to cover gaps in this year’s national budget, according to a letter read to lawmakers on Wednesday.>>>CONTINUE FULL READING HERE....CONTINUE READING THE ARTICLE FROM THE SOURCE
Tinubu also proposed a one-time windfall tax on banks’ foreign exchange earnings to boost revenue for capital infrastructure, education, healthcare, and welfare programs.
Lawmakers immediately began deliberating on the bill to authorize the additional spending, amid pressure from unions for a new minimum wage amidst the country’s severe cost of living crisis.
The 2024 budget, passed by lawmakers in December at 28.77 trillion naira, represents Tinubu’s first full-year spending plan since taking office.
The president’s request aligns with the “Accelerated Stabilisation and Advancement Plan” (ASAP), a strategy developed by the finance ministry in collaboration with private sector leaders and economists to tackle challenges hindering growth reforms.
In May, Tinubu eliminated a costly petrol subsidy and devalued the naira twice, moves welcomed by investors but leading to tripled petrol prices, higher transport costs, and a 28-year peak in inflation, sparking public discontent.
Despite pressure from labor unions over rising living costs, Tinubu has vowed to maintain these reforms.
Tinubu outlined that 3.2 trillion naira of the additional funds would support critical infrastructure projects nationwide, while 3 trillion naira would cover further recurrent expenditure needs.
Nigeria’s economy, with growth hovering around 3%, falls short of Tinubu’s initial target of 6% annual expansion since assuming office last year.
The president instructed his economic team to develop a 2 trillion naira stimulus package focusing on food security and bolstering key sectors like energy, health, and social welfare.>>>CONTINUE FULL READING HERE
