Nigeria’s President requests that Congress authorize an additional $4 billion in spending

According to a letter read to MPs on Wednesday, Nigeria’s President Bola Tinubu has requested that the Senate approve an additional spending of 6.2 trillion naira ($4 billion) to fill in gaps in this year’s national budget.

A one-time windfall tax on banks’ foreign exchange gains was another measure Tinubu tried to implement as part of his government’s plan to raise money for “welfare initiatives, education, and healthcare as well as capital infrastructure development.”

In the midst of the greatest cost of living crisis the nation has seen in a decade, unions are pressuring the government to agree on a higher minimum wage. Senators began discussing a bill approving the additional expenditure request right away.

The first full-year spending plan under Tinubu, a 28.77 trillion-naira budget for 2024, was approved by lawmakers in December.

Tinubu’s proposal aligns with the terms of the “Accelerated Stabilization and Advancement Plan” (ASAP), which was created by the finance ministry in collaboration with executives from the private sector and a few economists. The plan’s objective is to tackle obstacles associated with growth-promoting changes.

In an effort to jump-start economy, Tinubu eliminated a well-liked but expensive fuel subsidy and twice depreciated the naira in May of last year. These historic moves were welcomed by investors. However, the action infuriated the public by tripling gasoline prices, raising transportation expenses, and raising inflation to a 28-year high.

Labor unions have put pressure on Tinubu because of the increased cost of living brought forth by his changes, but he has promised not to undo them.

The president informed MPs that 3 trillion naira would be used to finance “further recurrent expenditure requirements” and that 3.2 trillion naira of the additional spending would be used to construct “critical infrastructure projects” around the nation.

With an annual growth rate of only 3%, Nigeria’s economy has been stuck in neutral and has fallen well short of the 6% growth Tinubu had set for himself when he took office last year.

Tinubu has directed his economic management group to draft a stimulus package worth two trillion naira, aimed at addressing food supply issues and supporting vital industries like energy, health, and social welfare.

$1 equals 1,555,0000 naira.