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
-
‘It’s unfortunate we had to protect the public purse from Akufo-Addo’ – Ablakwa on ORAL Team’s mission
8 minutes -
Congo lawyers say Apple’s supply chain statement must be verified
34 minutes -
Stampede in southwestern Nigerian city causes multiple deaths
58 minutes -
Tens of thousands without water in Mayotte as curfew brought in
1 hour -
ORAL: We won’t witch-hunt, we’ll focus on transparency, not revenge – Ablakwa
2 hours -
Attempted robbery: Accused claims he carried cutlass for protection
2 hours -
Excavator operator jailed for stealing
2 hours -
African fans age-shame me for putting on some outfits – Tiwa Savage
2 hours -
Tiwa Savage criticised by female fans for stance on cheating in relationships
2 hours -
Bank of England expected to hold interest rates
3 hours -
Congo river boat sinks killing at least 22
3 hours -
Nigeria approves Shell’s $2.4 billion asset sale to Renaissance
3 hours -
Embattled Liberian speaker questioned by police over parliament fire
4 hours -
‘I won’t be a judge in my own court; ORAL is about protecting public purse’ – Ablakwa
4 hours -
Bawumia joins thousands in Kumasi for burial prayers for Ashanti Regional Imam
4 hours