The Nigerian Senate on Wednesday commenced deliberations on the Appropriation (Repeal and Re-enactment) Bill 2024, transmitted by President Bola Tinubu, which proposes a consolidated federal expenditure framework of N43.56 trillion for the fiscal period covering 2024 and 2025.
The bill, formally titled the Appropriation (Repeal and Re-enactment) Bill 2 of 2024, was presented earlier in the day by the President in separate letters to the Senate and the House of Representatives.
It seeks to repeal the existing 2024 Appropriation Act and re-enact a harmonised spending plan to address the ongoing issue of overlapping budget cycles.
President Tinubu explained that the proposal aims to end the practice of running multiple budgets concurrently a situation exacerbated by repeated extensions of the 2024 capital budget into 2025 alongside the separate N54.99 trillion 2025 Appropriation Act already in operation.
The move is intended to streamline public finance management, enhance capital project implementation, and ensure higher performance rates for critical infrastructure and development initiatives.
The proposed N43.56 trillion (precisely N43,561,041,744,507) breakdown includes:
- N1.74 trillion for statutory transfers
- N8.27 trillion for debt service
- N11.27 trillion for recurrent (non-debt) expenditure
- N22.28 trillion for capital expenditure and development fund contributions
Additional provisions cover pensions, gratuities, and retirees' benefits, with a projected fiscal deficit of N20.13 trillion.
During plenary, Senate Leader Opeyemi Bamidele led the debate, emphasising that the bill reinforces fiscal discipline, accountability, and transparency.
It mandates strict adherence to scheduled purposes for fund releases, requires National Assembly approval for virements, and establishes mechanisms for handling excess revenue and corrigenda.
The Senate passed the bill for second reading and referred it to the Committee on Appropriations for further scrutiny.
Key members of the economic team, including the Ministers of Finance and Budget and Economic Planning, are expected to brief the committee soon.
This legislative action comes amid concerns over low revenue realisation in 2025, reportedly only N10 trillion against a N40 trillion target, forcing significant rollovers and highlighting the need for structural reforms in Nigeria's budgeting process.
If enacted, the consolidated framework would run until December 31, 2025, providing a unified legal basis for expenditures while prioritising national security, economic stability, and emergency responses.
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