The Senate has considered and passed the 2025/2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to it by President Bola Tinubu.
The passage followed the consideration of a report presented by Chairman of the Senate Committee on Finance, Senator Sani Musa, during the plenary
The red chamber approved the expenditure framework with a total spending of ₦47.9 trillion and a new borrowing plan of ₦9.22 trillion that includes both domestic and foreign borrowings
Presenting the joint committee report of committees on Finance and National Planning and Economic Development.at the Plenary, Senator Musa said the MTEF/FSP projected oil benchmark prices proposed for three years are achievable.
He said the MTEF/FSP projected oil benchmark prices of USD75, USD76.2 and USD75.3 per barrel for 2025, 2026 and 2027 respectively;
Additional recommendations in the paper are: “The three-year projections for domestic crude oil production had a significant increase from 1.78 mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027.
iii) Some critical agencies such as NNPC, NLNG, Immigration Services and others that are relevant to the attainment of set revenue targets in Public Private Partnership
iv) Historical non-remittance of operating surpluses into the Federation Account by the NNPCL due to what it called under recovery with the claim that the federating units owed it the sum of Ten Trillion Naira and many others.
The senators approved the framework with an exchange rate of ₦1,400 to a dollar and adopted the oil prices of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027
The framework also has daily oil production fixed at 2.06 million, 2.10 million, and 2.35 million barrels for the three years.
Debt service was also valued at ₦15.38 trillion, pensions, gratuities, and retirees’ benefits at ₦1.443 trillion,
The GDP growth rates were projected at 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026, and 2027
Capital expenditure is projected at ₦16.48 trillion, which is exclusive of transfers; statutory transfers stand at ₦4.26 trillion; the sinking fund is projected at ₦430.27 billion, while total recurrent (non-debt) expenditure is projected at ₦14.21 trillion,” the report reads.
Senator Musa told the legislators to consider the report of the committees and approve the recommendation therein.
The approval of the 2025-2027 Expenditure, Fiscal Strategy Paper will enable President Tinubu present the 2025 Budget proposal to the joint session of the National Assembly.
The approval will also avail various government Ministries, Departments and Agencies (MDAs) the opportunity to present justifications on their economic and fiscal estimates contained in the period under review. As presented by senator Sani musa
According to President Tinubu, the 2025-2027 MTEF/FSP was approved at the Federal Executive Council meeting on November 14, 2024.
He further explained that the Nigerian Federal government’s 2025 budget was prepared based on the parameters and fiscal assumptions outlined in the approved MTEF/FSP.
President Bola Tinubu few weeks ago submitted the Medium Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly for consideration.
