Tinubu Requests N6.2tn Budget Supplement, Bringing Total to N34.9tn Amidst Minimum Wage Talks

In a move to bolster the 2024 budget, President Bola Tinubu has requested the National Assembly’s approval to increase the budget by N6.2tn, bringing the total to N34.9tn. This comes after the initial N28.7tn budget was signed into law on January 1.

The President’s request, contained in a letter to Senate President Godswill Akpabio, also seeks to amend the 2023 Finance Act to impose a one-time windfall tax on banks’ foreign exchange gains. This tax aims to redistribute excess profits and raise revenue for public programs or debt reduction.

The proposed amendment is necessary to fund critical infrastructure projects, education, healthcare, and welfare initiatives, which are essential components of Tinubu’s Renewed Hope Agenda. The windfall tax is expected to generate additional revenue for the government, which will be used to fund capital and recurrent expenditure.

The Senate has expedited consideration of the request and mandated its Committees on Appropriations and Finance to provide more legislative inputs into the bills and report back within a week. While some senators support the bill, citing the need to fund critical infrastructure projects and improve the lives of Nigerians, others have expressed concerns about the potential impact on the banking sector and the economy.

The bill proposes N3.2tn for capital expenditure and N3tn for recurrent expenditure to fund critical infrastructure development, education, healthcare, and public welfare initiatives. The Senate Committee on Appropriation, led by Senator Olamilekan Adeola (APC, Ogun West), will review the bill further.

However, Senator Seriake Dickson (PDP, Bayelsa West) cautioned that lawmakers should thoroughly review the bills, particularly the financial act amendment, to avoid past errors and public ridicule. He suggested considering the amendment to the Appropriation Act and the Finance Act, 2023, separately.

The proposed amendment to the Finance Act 2023 is expected to generate significant revenue for the government, but its potential impact on the banking sector and the economy remains a concern for some stakeholders.