The Senate has approved the N28.7 trillion 2024 Appropriation Bill, marking a significant increase from the initial N27.5 trillion budget proposed by President Bola Tinubu. The approval follows the report of the Senate Committee on Appropriation, presented by the committee chairman, Solomon Adeola, during the plenary session on Saturday.

Adeola emphasized that the committee collaborated with the executive in adopting the Medium Term Expenditure Framework and Fiscal Paper. The committee made adjustments to the oil benchmark, setting it at 77.96 dollars per barrel, with a production of 1.78 million barrels per day, and an exchange rate of 800 naira to a dollar, deviating from the proposed 750 dollars by the executive.

The key highlights of the budget encompass a total aggregate expenditure of N28.7 trillion, with statutory transfers amounting to N1.7 trillion, recurrent expenditure at N8.7 trillion, and capital expenditure reaching N9.9 trillion. Adeola acknowledged the late submission of the 2024 Appropriation Bill, which contravened the Fiscal Responsibility Act, mandating the bill’s presentation three months before the start of the next financial year.

Furthermore, Adeola pointed out inconsistencies in the revenue of Government Owned Enterprises and the removal of certain agencies’ personnel costs from the Federal Government payroll. In addition, there were inadequacies in the allocation of funds to government Ministries, Departments, and Agencies (MDAs). Adeola urged the executive to adhere to the Fiscal Responsibility Act, emphasizing the need for compliance with relevant laws and the optimization of revenue generation by agencies removed from the federal government’s budget.

The committee also stressed the necessity of providing additional funds to underfunded MDAs and sustaining the increase in the capital component over recurrent expenditure to drive developmental programs nationwide.

The successful passage of the N28.7 trillion 2024 Appropriation Bill by the Senate reflects a collaborative effort between the legislative and executive arms while underscoring the imperative need for fiscal responsibility and effective budgetary planning to ensure the country’s sustainable development.