Ben Akabueze, Director-General of the Budget Office of the Federation, anticipates that an augmented dollar supply in 2024 will fortify the position of the naira. Akabueze made this disclosure during an interview with Channels TV on Tuesday, responding to queries regarding the feasibility of the N750 to a dollar projection in the 2024 appropriation bill.
Expressing optimism, Akabueze
stated, "The N750/$ exchange rate in the 2024 budget is possible. We may
begin the year with a slightly higher amount, but if all that the Central Bank
of Nigeria says it would do is put in place, as well as other things, we should
expect to see a significant increase in the supply of foreign exchange in the
economy in 2024."
He emphasized that the
government's confidence in the exchange rate is rooted in the potential success
of its policies. Akabueze asserted, "If the supply increases, the naira
will strengthen. Our focus is on what we can do to stimulate the flow of foreign
exchange into the economy."
Regarding deficit financing,
Akabueze detailed that the projected budget deficit of about N9.18tn would be
covered by sources such as privatization proceeds, expected to be around
N300bn, and N1.7tn from drawdowns on previously negotiated multilateral and
bilateral debts. Additionally, N8tn would be sourced from foreign and domestic
channels.
Akabueze mentioned that the
implementation of the 2023 budget would persist until March 31, 2024. He
concluded, "Revenues for the 2023 budget are on track, recurrent
expenditure ongoing. Essentially, only capital expenditure is lagging in terms
of the processes involved with the agencies implementing and meeting the
requirements for payment. Capital budget implementation is usually measured
based on how much has been paid."
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