House of Representatives on Wednesday, approved the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) which was transmitted to the National Assembly by President Bola Ahmed Tinubu in preparation for the presentation of the 2025 budget.
The House, while adopting the recommendation of the report of the Hon. James Abiodun Faleke, led committees on Finance and National Planning and Economic Development at the Plenary and approved the $75 oil sale benchmark price.
Hon Faleke while presenting the report said that it was the result of a joint meeting between both the House and Senate Committees, alongside relevant government agencies
The House also approved the three-year projections for domestic crude oil production with a significant increase from 1.78 Mbps to 2.06, 2.10, and 2.35 for the years 2025, 2026, and 2027.
In addition, the House endorsed a projected END GDP growth rate of 4.6%. 4.4% and 5.5% for years 2025, 2026, and 2027, and the projected exchange rate,e, which stands at N1400/USD for years 2025, 20,26, and 2,027, sub,ject, ho, however, to review in early 2025 according to monetary and fiscal policies.
The House also approved the Inflation rate projections of 15.75%, 14 21%, and 10 04% for years 2025, 2026, and 2027.
The House explained that based on the criteria in the overview of the framework for revenues and expenses, the 2025 Federal Budget proposed spending is to stand at NGN47. 9 trillion, of which NGN34. 82 trillion was retained.
The House further explained that new borrowings stood at N9.22 trillion, which constitutes both domestic and foreign borrowings, just as debt service was valued at N15. 38 trillion; pensions, gratuities, and retirees benefits stood at N 1.443 trillion, and the fiscal deficit at N13.08 trillion.
The House agreed that the capital expenditure is projected at N16.48 trillion which is exclusive of transfers ; statutory transfers stand at N4.26 trillion ; Sinking Fund is projected at N430.27 billion.
The House also approved the respective figures for total recurrent (non-debt) at N14.21 trillion; special intervention for recurrent and capital is at N200 billion and N7 billion.
The House further approved the promissory Note Programme and Bond Issuance to set the outstanding claims and liabilities of the Federal Government owed to States, high priority judgments, as well as liabilities incurred by Federal Ministries, Department, and Agencies on behalf of the Government.
The House directed the Committee on Finance to conduct review and initiate an inquiry into the implementation of the Nigerian Export Supervision Scheme, NESSS Act, specifically focusing on the inspection and monitoring of oil and gas exports by the Central Bank of Nigeria, CBN to ensure effectiveness, compliance, and oversight mechanism under the Act, identify gaps or challenges and enhance revenue for the government throughout transparency, accountability and efficiency of export supervision in line with the nation’s economic Policy
As expected, the stage is now set for the President to present the budget proposal to the joint sitting of the two chambers of the Nation’s Assembly by next week.
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