FG targets N24.54tr accruals into Federation Account in 2024
By Patience Ikpeme
ABUJA – The Nigerian government has projected a significant increase in revenue to the Federation Account, with estimates rising to N24.54 trillion in 2024 from N11.86 trillion projected for 2023. The Director General of the Budget Office of the Federation, Mr. Ben Akabueze, made this announcement at the Nigeria Economic Summit in Abuja.
According to Mr. Akabueze, revenue from the main pool is expected to reach N20.70 trillion, while the Value Added Tax (VAT) pool and Electronic Money Transfer Levy (EMTL) are projected at N3.66 trillion and N174.26 billion, respectively.
The projections are part of the 2024-2026 Medium Term Framework and Fiscal Strategy document, which was prepared to reflect the current realities and new direction of the President Tinubu administration. The document also highlights key parameters that will drive the medium-term revenue and expenditure framework for Nigeria.
Some of the key parameters include the projected oil benchmark, oil production, exchange rate, inflation rate, non-oil GDP, oil GDP, nominal GDP, GDP growth rate, imports, and nominal consumption. These parameters indicate the expected values and growth rates in various sectors of the economy over the three-year period.
The projections show that Nigeria’s economy is expected to maintain steady growth, with a projected increase in economic growth from 3.76% in 2024 to 4.78% in 2026. The growth is attributed to strong political will, tough decision-making, and necessary reforms.
The document also highlights the growth potential in sectors such as domestic oil refining capacity, telecommunications, crop production, and investment and employment. The bulk of the projected growth is expected to come from the non-oil sector.
However, there are some concerns regarding inflation, as it is projected to remain high at 21.4% in 2024. This is expected to gradually reduce in the following years due to tight monetary policy, lower deficit financing, and improvements in infrastructure and the business environment.
The projections also indicate an increase in consumption and imports, driven by factors such as wage increases, cash transfers to households, depreciation of the domestic currency, and imported inflation.
Overall, the projections paint a positive picture of Nigeria’s economy, with expectations of sustained growth and improvements in various sectors. However, there are still challenges to be addressed, including inflationary pressures and the heavy reliance on oil as a primary source of revenue.
