The N27.5 trillion budget for 2024 in Nigeria has sparked a range of responses from the public.

There is both pessimism and optimism regarding whether the budget will positively impact the lives of ordinary citizens, particularly in relation to the proposed N1.33 trillion allocated for infrastructure.

Concerns have been raised due to the historical underperformance of Nigeria’s budgets in recent years. The allocation of 5% for infrastructure, equivalent to N1.33 trillion, has further deepened worries among Nigerians, considering the country’s significant infrastructure deficit. Experts argue that this amount may not sufficiently address the annual infrastructural gap.

While recognizing that a single annual budget cannot solve all of the nation’s infrastructure challenges, experts have expressed doubts about the budget’s ability to achieve its intended goals. The budget, named the “Budget of Renewed Hope,” allocates the highest amount, N3.25 trillion (12%), to Security and Defence, following a similar trend seen in previous administrations. Education receives the second-highest allocation at N2.18 trillion.

The 2024 budget reflects a 10.8% increase compared to the 2023 budget of N24.82 trillion. The Minister of Budget and National Planning, Atiku Bagudu, stated that the budget aims to achieve an estimated revenue of N18.32 trillion, with a deficit of N9.18 trillion. Other key figures include N8.490 trillion (30%) for debt servicing, N9.918 trillion for recurrent non-debt expenditure, and N7.717 trillion for capital expenditure contributions to the Development Fund.

The importance of infrastructure development for the country’s economy cannot be overstated, particularly as the sector has been strained due to the removal of fuel subsidies since June 2023, resulting in higher transportation and food costs. However, some experts express skepticism about the budget’s ability to make a significant impact on ordinary Nigerians. They argue that the N1.33 trillion allocated for infrastructure fails to reflect the savings from fuel subsidy removal, which were allegedly squandered by the three tiers of government instead of being used to benefit the people.

The budget estimates have also been criticized for their reliance on an unrealistic exchange rate of N750/$1 and a daily crude oil production of 1.78 million barrels per day (bpd). Experts question whether these figures are achievable and how they may affect budget implementation. Concerns are also raised about the haphazard manner in which budget implementation is typically conducted in the country.

Some experts emphasize the need for a departure from historical budget performance and call for fiscal responsibility from the government. They argue that the budget should have a positive impact on every Nigerian, particularly in areas such as road infrastructure, which can benefit citizens nationwide. However, they acknowledge that direct cash impact may not be immediate, but indirect benefits can still be seen.

While the budget may not be able to fully address Nigeria’s infrastructural deficit, experts suggest exploring alternative funding arrangements such as Public-Private Partnerships, Joint Ventures, and Build, Operate and Transfer (BOT) models. They emphasize that the level of implementation will be crucial in determining the impact of the budget on the average Nigerian’s life.

Overall, the responses to the N1.33 trillion budgetary allocation for infrastructure in Nigeria’s 2024 budget are mixed, with concerns raised about historical underperformance, the adequacy of the allocation, and the realistic implementation of the budget’s provisions.