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President Bola Tinubu has requested that the National Assembly increase the 2024 Appropriation Act by ₦6.2 trillion.

Tinubu’s request was contained in a letter read by Senate President Godswill Akpabio on the floor of the upper legislative chamber on Wednesday.

This increases the 2024 budget to N34.9 trillion from an initial N28. 7 trillion budget Tinubu signed into law on January 1.

Tinubu is seeking an amendment to the budget to provide for N3.2 trillion for infrastructure projects and N3 trillion for recurrent expenditure.

“Pursuant to section 58 (2) of the constitution of the federal republic of Nigeria as amended, I forward herewith the above named bills for consideration and passage by the senate,” Tinubu said.

“The appropriation act amendment bill seeks to amend the principal act to provide the sum of N3,200,000,000,000 for Renewed Hope Infrastructure Projects and other critical infrastructure projects to be undertaken across the country and the sum of N3,000,000,000,000 to meet further recurrent expenditure requirements necessary for the prosper operation of the federal government.

“They shall be funded by accruing to the federal government of Nigeria.”

Tinubu asked the national assembly to amend the Finance Act of 2023 to tax windfalls gotten by banks owing to “foreign exchange gains”.

“Furthermore, the proposed amendments to the Finance Acts 2023 are required to a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare as well as welfare initiatives all which are components of the Renewed Hope Agenda,” he said.

On September 12, 2023, the Central Bank of Nigeria (CBN) directed banks to stop utilising gains from the revaluation of the naira to pay dividends or finance operations.

The financial regulator said a review of the foreign exchange (FX) regime change showed the banks are in a position to profit from the policy because of its potential to significantly increase the naira value of banks’ foreign currency (FCY) assets and liabilities.

On June 14, the CBN officially unified the multiple FX rate systems, collapsing all FX windows into the investors’ and exporters’ (I&E) window.

The policy resulted in a significant depreciation of the local currency, causing significant levels of volatility in the FX market.