The House of Representatives is taking steps to review the parameters of the 2024 budget in response to the weakening of the Naira against major currencies.

The House has tasked its Committees on National Planning and Economic Development, Appropriation, and Finance to specifically examine the exchange rate used in the budget.

This decision was made following a motion raised by Kafilat Ogbara during the Thursday plenary session.

The Naira experienced a prolonged period of decline after the decision to float the currency, but recent interventions by the Central Bank of Nigeria have resulted in some stabilization. However, the current value of the Naira is significantly different from the rate used in preparing the 2024 budget, which was set at N800 to a dollar, with the Naira currently trading at N1,605 to a dollar.

Mrs. Ogbara highlighted that the fluctuations in the exchange rate have led to inflationary pressures, impacting the prices of goods and services beyond the original budget estimates. She emphasized the need for the National Assembly to review and possibly amend the 2024 Appropriation Act to accommodate these changes.

The House has instructed the committees to conduct a thorough assessment of how the foreign exchange fluctuations affect the 2024 budget and to propose adjustments to align with the current exchange rate. They are also tasked with evaluating the impact of these fluctuations on the purchasing power and efficiency of the budget. Additionally, the committees will evaluate expected government revenue from various sources to ensure budgetary effectiveness.

The motion was unanimously adopted by the House, and the committees have been given six weeks to complete their assessment.