Senate sets oil benchmark at $40 per barrel, passes 2021-2023 MTEF, FSP

The Senate on Thursday passed for third reading, the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).  

Senator representing Lagos West and chairman, Senate Committee on Finance, Olamilekan Solomon Adeola presented the Conference Report of the Joint Committee of the Senate and House of Representatives on Finance on the floor of the Red Chamber.  

Senator Adeola, in his presentation, said the Conference Report of both chambers of the National Assembly was harmonised, based on differences contained in the 2021-2023 MTEF/FSP document. 

Senator Adeola enunciated the recommendations of the joint committee after exhaustive deliberations to include crude oil production ceiling at 1.86mbpd at US$40 per barrel, exchange rate at N379 to $1USD; Gross Domestic Growth (GDP) rate at 3 per cent; inflation growth rate at 11.95 per cent; and FGN retained revenue at N7.99 trillion.

The joint committee further proposed total proposed expenditure at N13.58 trillion; Fiscal deficit at N5.60 trillion; New borrowings N4.28 trillion (including Foreign and Domestic Borrowing); Statutory Transfers at N484.4 billion; Debt Service N3.12 trillion; Sinking Fund N220 billion; Pension, Gratuities and Retirees Benefits N520.6 billion; Total FGN expenditure N13.58 trillion; and Total Recurrent (Non-Debt) N5.66 trillion.

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Personnel Costs for Ministries, Departments and Agencies of Government (MDAs) was put at N3.05 trillion.

Capital Expenditure (exclusive of Transfers) at N3.58 trillion; Special Intervention (Recurrent) N350 billion; and Special Intervention (Capital) – N20 billion. 

Tribune Online checks revealed that the passage of the MTEF, FSP documents by the Senate was a prelude to the final passage it planned to carry out on the 2021 budget along with the House of Representatives.

President of the Senate, Ahmad Lawan further disclosed that the Senate would sit on Monday for final consideration and passage of the 2021 budget.

He said: “Both chambers of the National Assembly need to make the sacrifice of sitting on Monday next week close to Christmas for the sole purpose of passing the 2021 budget.

“We believe that after doing that on Monday, the budget will be given presidential assent before the year runs out for the implementation to commence in January 2021 for the betterment of Nigerians.”


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