The Senate has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), projecting a total expenditure of ₦47.9 trillion. The plan includes new domestic and foreign borrowings amounting to ₦9.22 trillion.
The approval was based on a report presented by Senator Sani Musa, Chairman of the Senate Committee on Finance, during Wednesday’s plenary session. The MTEF serves as a foundation for the nation’s annual budget, outlining a three-year spending and revenue projection.
Key parameters in the approved framework include an exchange rate of ₦1,400 to a dollar and benchmark oil prices of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively. Daily oil production is estimated at 2.06 million, 2.10 million, and 2.35 million barrels for the same period.
The framework also allocates ₦15.38 trillion for debt servicing, ₦1.443 trillion for pensions, gratuities, and retirees’ benefits, and sets a fiscal deficit of ₦13.08 trillion. Gross Domestic Product (GDP) growth rates are projected at 4.6%, 4.4%, and 5.5% for the three years.
Other highlights include a capital expenditure projection of ₦16.48 trillion, statutory transfers of ₦4.26 trillion, a sinking fund of ₦430.27 billion, and recurrent (non-debt) expenditure of ₦14.21 trillion.
The approved framework is expected to guide Nigeria’s fiscal policy and budgetary allocations, aiming to stimulate economic growth and address critical development needs.
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