The federal government has announced that its projection for the 2024 fiscal year inflationary rate stands at 21.4%, a 5.93%-point decline from its current 27.33% rate.
President Bola Tinubu made this disclosure during his presentation of the 2024 appropriation bill to the National Assembly on Wednesday.
He further stated that the proposed Budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction, and greater access to social security.
According to the Nigeria Bureau of Statistics, Nigeria’s headline inflation rate stands currently at 27.33%, an almost two-decade high since 2005.
In addition, KPMG, a global financial advisory service firm, stated that Nigeria’s inflation rate will reach 30% by December 2023.
What the President said
Meanwhile, President Tinubu said the government through a collaboration with the fiscal and monetary policy instruments is working to bring down the rate by almost 6% in 2024.
Tinubu said,
- “Inflation has trended upward due to weak global conditions. To contain the rising domestic prices, we will ensure effective coordination of fiscal and monetary policy measures and collaborate with sub-national governments to address structural factors driving inflation in Nigeria.
- “The Budget proposal meets our goal of completing critical infrastructure projects which will help address structural problems in the economy by lowering the costs of doing business for companies and the cost of living for the average person.
- “A stable macro-economic environment is important to catalyze private investment and accelerate economic growth. We have and shall continue to implement business and investment-friendly measures for sustainable growth.
- “We expect the economy to grow by a minimum of 3.76%, above the forecasted world average. Inflation is expected to moderate to 21.4% in 2024.”
More Insights
The President also stated that the government is positioning the country for investment programs to enhance economic growth as well as fix financial leakages.
He added that the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.
- “Our government remains committed to broad-based and shared economic prosperity. We are reviewing social investment programs to enhance their implementation and effectiveness.
- “In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households. In addition, efforts will made to graduate existing beneficiaries toward productive activities and employment,” he added.