The House of Representatives on Wednesday approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) presented by President Bola Ahmed Tinubu.
The passage of the MTEF/FSP by the National Assembly sets the stage for the president’s presentation of the 2025 budget.
The MTEF/FSP outlines the key parameters for preparing the annual budget, including projections for the exchange rate, oil benchmark, and inflation rates.
After a clause-by-clause review by the Committee of the Whole, the framework was approved following the presentation of the report by the Committees on Finance, National Planning, and Economic Development during plenary.
The approved key parameters of the MTEF/FSP include oil benchmark prices of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively. The projected exchange rate for 2025, 2026, and 2027 was set at N1,400 to the dollar, while inflation rate projections are 15.75%, 14.21%, and 10.04% for the same years.
In anticipation of increased domestic crude oil production, the House raised the daily oil production projections from 1.78 million barrels per day (mbpd) to 2.06 mbpd, 2.10 mbpd, and 2.35 mbpd for 2025, 2026, and 2027, respectively.
The proposed 2025 budget is set at N47.9 trillion, excluding transfers, with debt service accounting for N15.38 trillion, proposed capital expenditure of N16.48 trillion, and a fiscal deficit of N13.08 trillion.
The report further noted that, based on the framework’s revenue and expenditure criteria, the proposed spending for the 2025 budget stands at N47.9 trillion, with N34.82 trillion allocated for retention.
