The House of Representatives has initiated moves to reassess the parameters of the 2024 budget in response to the depreciation of the Naira against major currencies.
During Thursday’s session, the House directed its Committees on National Planning and Economic Development, Appropriation, and Finance to review the budget parameters, particularly focusing on the exchange rate.
This decision followed a motion of urgent public importance raised by Kafilat Ogbara (APC, Lagos) during the plenary.
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Ogbara highlighted the Naira’s decline in value over recent months, attributed partly to the floating of the currency by monetary authorities.
Although there has been a recent recovery due to measures implemented by the Central Bank of Nigeria, the Naira’s current exchange rate stands significantly higher than the rate used in drafting the 2024 budget, which was set at N800 to a dollar. Presently, the Naira trades at N1,605 to a dollar.
Ogbara stressed that these fluctuations have led to inflationary pressures, impacting prices beyond the budget estimates and potentially hindering the effective implementation of the 2024 budget.
Consequently, she proposed a review of all items within the 2024 Appropriation Act by the National Assembly.
The House unanimously endorsed the motion, tasking the committees with conducting a comprehensive assessment of the foreign exchange implications on the 2024 budget.
Specifically, they are to evaluate how exchange rate fluctuations affect purchasing power and overall budgetary effectiveness. Additionally, the committees will scrutinize anticipated government revenue from various sources, including taxes and other income streams.
The motion, which was adopted without debate, mandates the committees to complete their assessment within six weeks.