The House of Representatives is moving to review the parameters of the 2024 budget due to the depreciation of the Naira against major currencies.
The House, on Thursday, mandated its Committees on National Planning and Economic Development, Appropriation and Finance, to review the parameters in the budget, particularly the exchange rate.
This resolution followed a motion of urgent public importance moved by Kafilat Ogbara (APC, Lagos) during plenary.
The naira was on a free fall for months following the decision of the monetary authorities to float the currency. However, it has rallied recently due to some measures taken by the Central Bank of Nigeria.
Despite the halt in the slide, the value of the naira is far from the rate used in preparing the 2024 budget. The budget was pegged at N800 to a dollar but the naira currently trades at N1,605 to a dollar.
The motion
Moving the motion, Mrs Ogbara said the changes in the exchange rate have triggered inflationary pressure that in turn affects the prices of goods and services beyond the estimates of the budget.
She stated that the distortions could make it impossible to adequately implement the 2024 budget.
“It becomes imperative for the National Assembly to review (amendments to) all the items that make up the 2024 Appropriation Act,” she stated.
Following the presentation of her motion, the House mandated the committees to carry out a comprehensive assessment of the implications of the foreign exchange on the 2024 appropriation act and determine the method of alignment of the current foreign exchange with the approved national budget.
The committees are to evaluate the prevailing exchange rates to understand the value of the foreign exchange in the local currency and how fluctuations impact the purchasing power and overall 2024 budgetary effectiveness.
Furthermore, the House asked the committees to examine the expected revenue the government anticipates from various sources, including taxes and other income streams.
The motion was not debated but was adopted unanimously by the members when it was put to vote by the presiding officer, Ben Kalu, the deputy speaker.
The committees were mandated to carry out the assignment within six weeks.
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