President Bola Tinubu has requested the National Assembly to increase the 2024 appropriation act by N6.2 trillion. This request was communicated in a letter read by Senate President Godswill Akpabio on Wednesday.
The proposed increase would raise the 2024 budget to N34.9 trillion, up from the initial N28.7 trillion that Tinubu signed into law on January 1. The amendment aims to allocate N3.2 trillion for infrastructure projects and N3 trillion for recurrent expenditures.
“Pursuant to section 58 (2) of the constitution of the Federal Republic of Nigeria as amended, I forward herewith the above-named bills for consideration and passage by the Senate,” Tinubu stated in his letter.
“The appropriation act amendment bill seeks to amend the principal act to provide the sum of N3,200,000,000,000 for Renewed Hope Infrastructure Projects and other critical infrastructure projects across the country, and the sum of N3,000,000,000,000 to meet further recurrent expenditure requirements necessary for the proper operation of the federal government. These funds shall accrue to the federal government of Nigeria.”
Tinubu also urged the National Assembly to amend the Finance Act of 2023 to impose a one-time windfall tax on banks’ foreign exchange gains.
“Furthermore, the proposed amendments to the Finance Act 2023 are required to implement a one-time windfall tax on the foreign exchange gains realized by banks in their 2023 financial statements. This tax will fund capital infrastructure development, education, healthcare, and welfare initiatives, all of which are components of the Renewed Hope Agenda,” he said.
On September 12, 2023, the Central Bank of Nigeria (CBN) directed banks to stop using gains from the revaluation of the naira to pay dividends or finance operations. The financial regulator noted that a review of the foreign exchange regime change indicated that banks are positioned to profit significantly from the policy due to its potential to substantially increase the naira value of banks’ foreign currency assets and liabilities.
On June 14, the CBN officially unified the multiple FX rate systems, consolidating all FX windows into the investors’ and exporters’ (I&E) window. This policy led to a significant depreciation of the local currency, causing considerable volatility in the FX market.
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