Amidst the ongoing foreign exchange crisis affecting the Nigerian economy, The House of Representatives has called for a thorough review of the 2024 budget project due to the depreciation of the naira against major currencies,particularly the dollar, in recent months.
Rising from a plenary session on Thursday, lawmakers unanimously adopted a motion titled, “Need to evaluate the implications of the current exchange rates on the 2024 national budget implementation to ensure a balanced budget and increase in the standard of living of Nigerians.”
The motion, spearheaded by Kafilat Ogbara, a member of the All Progressives Congress representing Kosofe Federal Constituency, Lagos State, underscores the critical need to address the adverse effects of exchange rate fluctuations on the budgetary framework.
Ogbara, who also chairs the House Committee on Women Affairs and Social Development, highlighted the challenges posed by the volatile exchange rate dynamics, emphasizing its ripple effects on macroeconomic indicators such as inflation, fiscal deficits, and economic growth.
The current exchange rate, with the naira exchanging for N1,488 to $1 in the official market on Thursday, has prompted concerns about its impact on imported goods, domestic product pricing, investment performance, and overall economic stability.
Expressing concern over the potential disruption to budget implementation, Ogbara emphasized the necessity for a comprehensive review of the 2024 Appropriation Act, Medium Term Expenditure Framework/Fiscal Strategy Paper, external borrowing plan, and the role of bureaucracy in budget execution.
In response to the motion’s adoption, the House mandated its Committees on National Planning and Economic Development, Appropriation, and Finance to conduct a thorough assessment of the forex implications on the budget and propose necessary adjustments within a six-week timeframe.
