President Bola Tinubu has written to the Nigerian Senate seeking to increase the 2024 appropriation act by N6.2 trillion, raising it from N28.7 trillion to N34.9 trillion.
The proposal, read by Senate President Godswill Akpabio, allocates N3.2 trillion for infrastructure projects and N3 trillion for recurrent expenditure.
In his letter, Tinubu invoked section 58 (2) of the Nigerian Constitution, requesting the Senate’s approval for the amendment. The additional funds aim to support the “Renewed Hope Infrastructure Projects” and other critical infrastructure needs, as well as cover essential recurrent expenditure for the federal government’s operation.
Additionally, Tinubu urged the National Assembly to amend the Finance Act of 2023. This amendment targets the windfalls generated by banks from foreign exchange gains, with the intent to ensure a fair taxation policy.
The proposed tax on these profits aims to fund capital infrastructure development, education, healthcare access, and public welfare initiatives, all part of the Renewed Hope Agenda.
Top Nigerian banks reported substantial profits, largely due to forex revaluation gains. In 2023, top banks earned N3.3 trillion, with N2.48 trillion accrued by the top seven banks and an additional N882.9 billion in the first quarter of 2024. Tinubu’s proposal seeks to leverage these gains to support national development priorities.
