Audio By Carbonatix
Nigeria's President Bola Tinubu has asked the Senate to approve an additional spending of 6.2 trillion naira ($4 billion) to plug shortfalls in this year's national budget, according to a letter read to lawmakers on Wednesday.
Tinubu also sought to impose a one-off windfall tax on banks' foreign exchange gains, as his government aims to raise revenues to fund "capital infrastructure development, education, and healthcare as well as welfare initiatives."
Senators immediately started debating a bill to approve the extra spending request, which comes at a time when the government is under pressure from unions to agree on a new minimum wage amid the country's worst cost of living crisis in a generation.
Lawmakers had passed a 28.77 trillion naira budget for 2024 in December, the first full-year spending plan under Tinubu.
Tinubu's request is in line with provisions in an "Accelerated Stabilisation and Advancement Plan" (ASAP), drafted by the finance ministry with private sector executives and some economists, that aims to address challenges related to reforms aimed at boosting growth.
Last May, Tinubu axed a popular but costly subsidy on petrol and twice devalued the naira in landmark reforms cheered by investors to try to kick-start growth. But the move caused petrol prices to triple, increased transport costs and pushed inflation to a 28-year high, angering citizens.
Tinubu has faced pressure from labour unions over the rising cost of living due to his reforms, but he has vowed not to roll them back.
The president told lawmakers that 3.2 trillion naira from the extra spending will go to build "critical infrastructure projects" across the country and 3 trillion naira will fund "further recurrent expenditure requirements".
Nigeria's economy has been stuck in low gear with growth of around 3%, far short of the 6% annual expansion Tinubu targeted when he came to power last year.
Tinubu has asked his economic management team to prepare a 2 trillion naira stimulus plan to address concerns about food supplies, and bolster key sectors such as energy, health and social welfare.
Latest Stories
-
World Bank pushes regional health strategy to close financing gaps in West and Central Africa
10 minutes -
Britney Spears pleads guilty to reckless driving after arrest
14 minutes -
Parentage, not paternity: Ghana’s proposed compulsory paternity testing bill sparks fears of discrimination against mothers
15 minutes -
Samsung family pays off record $8bn inheritance tax bill
20 minutes -
Spain seizes record amount of cocaine in Atlantic Ocean, authorities say
22 minutes -
Two killed and many injured after car driven into crowd in German city of Leipzig
28 minutes -
KiDi drops another summer jam ‘Signature’ featuring Lasmid
31 minutes -
UAE accuses Iran of renewed drone and missile attacks
32 minutes -
Giuliani recovering from pneumonia and ‘now breathing on his own’
35 minutes -
Blake Lively and Justin Baldoni settle lawsuit over It Ends With Us film
38 minutes -
Devastating fire destroys house in Okpoi Gonno
49 minutes -
Korle Bu doctors suspend strike action after management intervention
1 hour -
Diaspora African Forum commits to advancing Ghana’s diplomatic agendaÂ
1 hour -
BoG’s negative equity doesn’t mean it is policy insolvent – Attah Issah
1 hour -
Deliver or lose the deal – Roads Minister issues final warning to non-performing contractors
1 hour