ANALYSIS OF THE 2024 PROPOSED AGRICULTURE BUDGET

ANALYSIS OF THE 2024 PROPOSED AGRICULTURE BUDGET

As of December 2023, approximately 70 million Nigerians live in extreme poverty. 89 per cent of these citizens are in rural areas, while 11 per cent are in urban areas. Extreme poverty is characterised by severe deprivation of basic human needs, including food, clean water, shelter, education, and healthcare.

Following a comprehensive analysis of the proposed 2024 budget for the agriculture sector, several observations have been identified:
1.
The allocation dedicated to the agricultural sector within the overall budget has consistently oscillated between 1 and 2 percent over the past seven years. This persistent pattern deviates from the expected trajectory of a progressive increase aimed at bolstering the sector, with the figure for 2024 standing at 1.32%.
2.
Notably, there exists an erratic trend in the percentage distribution between capital and recurrent budgets within the primary ministry, the Federal Ministry of Agriculture and Food Security (FMAFS).
3.
It is crucial to acknowledge the potential impact of inflation on diminishing the real value of the budget, thereby compromising the efficacy of the capital budget to facilitate substantive sectoral development. This consideration assumes paramount importance and warrants due attention.
4.
Certain components within both the capital and overhead budgets pose challenges in terms of monitoring, as the budgetary documentation lacks comprehensive information regarding essential details such as specifications of what, where, when, who, and how pertaining to specific line items. This opacity hampers effective oversight.
In light of these findings, it is recommended that a more transparent and detailed budgetary framework be pursued to foster accountability and effective monitoring, thereby ensuring optimal utilization of resources for the advancement of the agriculture sector.

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