With the Naira’s outlook, in the last many months, what should Nigerian Entrepreneurs have to do with the 2024 national budget?
The aim here is to answer troublesome questions regarding the Nigerian budget, in 2024. We take the nutty parts from budget lines and convey how it can positively affect the bottom lines for Entrepreneurs.
Your first question might therefore be; what have I got to do with a National budget? How do individual (production) units of an economy take advantage of the budget and turn it into a handy tool?
Budgets get the attention of everyone but not many know a lot about this very vital document.
Incidentally, this subject has remained on the lips of Nigerians for the first few months of the year 2024. And it has remained so halfway through the year. So it may be worth our while to discuss and get the appropriate impression for the second half. This effort will be to our benefit whatever the current happenings.
It is basic knowledge that every year, every government across the world presents what is called the federal budget. It is a culture of guidance for all economic agents and therefore supposed to be a working tool for all. Budgets are pretty much done at the various tiers of government. Unfortunately, not many are made to see it this way.
Budgets are pretty much done at the various tiers of government. Its central purpose is for the planning and growth of all economic agents and stakeholders.
Please enjoy as we wait for you to engage us after this piece of reading.
A public budget refers to the government’s plan for how it will allocate resources and spend money to provide public goods and services. As an entrepreneur, you may then wonder how this affects you and your business.
Here are some key areas entrepreneurs cannot ignore or dispense with:
- Government spending: The budget allocates funds for various programs, infrastructure projects, and services that can impact your business, such as transportation, education, and healthcare as you would have seen in this 2024 budget.
- Economic impact: Government spending and taxation policies can influence the overall economy, affecting consumer spending, interest rates, and inflation, which in turn affect your business’s sales, profits, and growth.
- Regulations and policies: The budget can influence regulations and policies that affect your industry, such as labor laws, environmental regulations, or trade policies.
- Funding opportunities: Government programs and initiatives funded through the public budget can provide opportunities for grants, loans, or contracts for your business.
- Infrastructure development: Budget allocations for infrastructure projects, like transportation and internet connectivity, can improve the business environment and facilitate
By understanding the public budget, you can make informed decisions, take advantage of opportunities, and navigate challenges that affect your business directly.
Budgets have two parts
So budgets are a hot (annual) topic. And it’s not something any economic agent should miss. How much more, entrepreneurs… We will be looking through some more details on the 2024 budget and then point to unique opportunities therein.
A TYPICAL budget is essentially made up of two parts. We have the revenue part of the budget and then you have the expenditure side. As a matter of information, the budgetary outlook as proposed by the Nigerian government for this fiscal year stands at N27.5 trillion as Expenditure and N18.3 trillion as income which results in a deficit of N9.2 trillion.
When we talk about a public budget, basically we are talking about the preferences of the society. T/F?
Would you agree with the school of thought that says, it is the people that write the budget while the government just presents a formal document reflecting what the people’s preferences are? (READ THAT AGAIN)
Who (then) really writes the budget – the government or the people?
So it will really be nice to clear the air on this question before we dive into the details of the Nigerian budget 2024.
When we see the budget document, therefore we see government’s intentions, approximation, articulation, or impression of what the people want.
From this definition, we see the people are the Original Writers of the budget. Hence, we all must be involved.
It is however another kettle of fish when we ask if the Budget, as presented by the government is Realistic or NOT. (In other words, what we are really asking is, “does it reflect ‘the people’ as the true writers? “
To answer this question, and not mincing words, what we find as a common trend in Nigeria’s budget over the years is that the income projections and expenditure expectations breed dissatisfied, disinterested people!
Our Mission is to spark up an interest regardless of this surreal presentation. We want to point entrepreneurs to the positives of the budget!
Hence: FROM BUDGET LINES TO BOTTOM LINES: Equipping Nigerian Entrepreneurs with the Positive Attributes of the 2024 Budget.
To receive Stream 2 of this document with fuller details: please send an email to info@nanofins.ng
Please include an introduction of your business or what you are interested in doing.
SNIPPET TO STREAM 2:
One of the unearthed discoveries in the full document is in the indirect sectoral allocation influence on Agriculture in the 2024 budget via allocation to Security. Apart from the Agric sector, other value services in the chain such as the distribution channels in the supply-chain will definitely witness positive outlooks.
The top four sectoral allocations (Defense – N3.3trillion, Education – N2.18trillion, Health – N1.33trillion, and very closely is Infrastructure – N1.32trillion) will have a direct impact on businesses and several indirect influences as highlighted in the complete document.
All these will witness a boom for those who follow our thoughts, leading to a close watch on how the sectoral allocation will be implemented to our individual benefit as valid ‘Writers’ of the budget.
