Senate approves ‪2024-2026‬ medium term expenditure, N7.8trn borrowing plan

THE Senate has approved the medium-term expenditure framework (MTEF) for ‪2024-2026‬ and the fiscal strategy paper (FSP) which contains projections for budget appropriations over the next three years.

The upper legislative chamber gave the approval after considering the report of the joint committee chaired by Sani Musa, Chairman Senate Committee on Finance during plenary on Wednesday, November 22 in Abuja.

The lawmakers approved $73.96, $73.76, and $69.90 per barrel, respectively, as benchmark oil prices for daily crude oil production of 1.78 million bpd, 1.80 million bpd, and 1.81 million bpd for 2024, 2025, and 2026.

The approval is, however, subject to the confirmation of the Nigerian National Petroleum Company Limited(NNPCL) on actual and verifiable deliverables.

Also, the Senate approved the Federal Government’s recommended spending of N26 trillion, with N16.9 trillion in retained revenue, a N9 trillion budget deficit, and N7.8 trillion in new borrowings (including borrowing from foreign and domestic sources).

It also approved N1.3 trillion worth of statutory transfers, an estimated N8.2 trillion in debt service, N243.6 billion in the sinking fund; N1.27 trillion in pension, gratuity, and retiree benefits.

The upper chamber also approved the exchange rate of N700 to $1, 665.61 to $1, and N669.79  to $1 as proposed by the executive for 2024, 2O24, and 2026 respectively.






     

     

    At the debates on the report, some lawmakers proposed that the exchange rate be increased to N900 to reflect current realities, but when put to a voice vote, lawmakers agreed that the committee’s report be sustained.

    The Senate recommended that all items locally produced for the Nigerian market should be outrightly banned from importation and customs tariff be amended accordingly.

    It approved that the Central Bank of Nigeria (CBN) should ensure that banks can access dollars to prevent patronage at the parallel markets.

    The Senate also approved gross domestic product (GDP) growth rates of 3.76 per cent, 4.22 per cent, and 4.78 per cent in 2024, 2025, and 2026; and an inflation rate of 21.4 per cent, 20. 3 per cent , and 18.6 per cent for 2024, 2025, and 2026 respectively.

     

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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