The House of Representatives has resolved to assess the implications of the foreign exchange on the 2024 Appropriation Act.
This comes after Honourable Kafilat Ogbara proposed a motion to analyse the consequences of current exchange rates on the 2024 national budget implementation to achieve a balanced budget and an increase in Nigerians’ standard of living.
The committees on national planning and economic development, appropriation, and finance are tasked with determining how to align current foreign exchange with the approved national budget; evaluating current exchange rates to understand the value of foreign exchange in local currency; and determining how fluctuations affect purchasing power and overall 2024 budgetary effectiveness.
The evaluation would also look at how the government expects to generate revenue from various sources, such as taxes and other income streams, and how this might help determine the financial resources available to meet budgetary needs.
It also entails examining the defined government spending intentions across all sectors and making adjustments as needed to ensure that the budget stays realistic and doable given the economic climate, taking into account priorities and critical areas.
The federal government predicated the 2024 budget on a foreign currency benchmark of N800 per dollar.
However, the naira has fallen further against the dollar, now trading at roughly N1,500 per dollar.