The Nigerian Senate approves the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), setting the stage for the Federal Government’s N47.9 trillion budget proposal for 2025.
The approved framework allocates N16.4 trillion for capital projects and N14.2 trillion for recurrent expenditure. Serving as a guide for economic and fiscal planning over three years, the MTEF-FSP establishes key parameters for the country’s annual budgets.
Key Projections and Economic Assumptions
The Senate endorses critical components of the framework, including:
- Oil Benchmark Price: $75 per barrel for 2025, $76.2 for 2026, and $75.3 for 2027.
- Daily Oil Production: 2.06 million barrels per day in 2025, 2.10 million barrels in 2026, and 2.35 million barrels in 2027.
- Exchange Rate: N1,400 per dollar, despite concerns about the prevailing market rate of N1,700 per dollar.
- GDP Growth Rate: 4.6% in 2025, 4.4% in 2026, and 5.5% in 2027.
The framework includes a borrowing plan of N9.22 trillion, covering both domestic and foreign loans.
Budget Breakdown
The MTEF-FSP projects N16.48 trillion for capital expenditure, excluding statutory transfers, and N4.26 trillion for statutory transfers. Recurrent expenditure, excluding debt servicing, is set at N14.21 trillion, while debt servicing is budgeted at N15.38 trillion. Additionally, N1.44 trillion is allocated for pensions and retirees’ benefits.
Legislative and Executive Actions
This approval follows the House of Representatives’ endorsement of the MTEF-FSP on November 19, 2024. President Bola Tinubu transmitted the framework to the National Assembly after its adoption by the Federal Executive Council on November 14, 2024.
President Tinubu confirms that the 2025 budget proposal is built on the parameters and fiscal assumptions outlined in the framework, emphasizing the government’s commitment to fiscal discipline and sustainable economic growth.
, setting the stage for the Federal Government's N47.9 trillion budget proposal for 2025.){kind=link}