On how President Bola Tinubu’s plans to finance the 2024 Fiscal budget,
– Increase in Tax-to-GDP ratio with a target of 18% in the long run by widening tax net through the Fiscal Policy and Tax Reform Committee
– The implementation of VAT removal on Diesel aims to boost tax revenue, promote digitalization, and enhance overall efficiency.
– Abia State to receive a $15 million concessional support loan from the AFDB, facilitated by the Federal Government, earmarked for waste management and road rehabilitation in Aba and Umuahia
– An approved $1 billion concessional loan from AFDB, with a 25-year repayment period at 4.2% per annum, is intended to foster macro-stability by restoring revenue and improving the foreign exchange situation.
– The $1 billion budget support serves as both a reward and backing for the government’s programs and ongoing macroeconomic reforms, contributing to the country’s financial viability.
– FEC’s approval of 2 trillion aims to reduce the current interest rate on outstanding debt, potentially resulting in substantial savings of about 50 billion on debt servicing.
Note: The $1 billion for budget support is distinct from the $1 billion allocated for agriculture.
