THE Senate On Tuesday, December 3, approved the 2025-2027 medium-term expenditure framework (MTEF) and the fiscal strategy paper (FSP).
The Senate also tasked its committees on finance and petroleum as well as gas to investigate allegations of withheld funds by the NNPC, including NGN 8.48 trillion in petrol subsidies, and $2 billion (NGN 3.6 trillion) in unpaid taxes.
The MTEF is a projection of a three-year spending plan of the federal government. The nation’s budget is predicated on this framework and backed by relevant laws from the Fiscal Responsibility Act (FRA) 2007.
The upper legislative chamber approved the expenditure framework with a total spending of ₦47.9 trillion and a new borrowing plan of ₦9.22 trillion which includes both domestic and foreign borrowings.
The approval followed the consideration of a report presented by the chairman of the Senate Committee on Finance, Sani Musa, during the plenary on Tuesday.
The lawmakers approved the framework with an exchange rate of ₦1,400 to a dollar and adopted the oil prices of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027 respectively.
The framework also has daily oil production fixed at 2.06 million, 2.10 million, and 2.35 million barrels for the three years.
Debt service was valued at ₦15.38 trillion, pensions, gratuities, and retirees’ benefits at ₦1.443 trillion, and the fiscal deficit at ₦13.08 trillion.
The GDP growth rates were projected at 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026, and 2027 respectively.
“Capital expenditure is projected at ₦16.48 trillion, which is exclusive of transfers; statutory transfers stand at ₦4.26 trillion; the sinking fund is projected at ₦430.27 billion, while total recurrent (non-debt) expenditure is projected at ₦14.21 trillion,” the report reads.
Also, the passage followed the presentation of a report of the Joint Committees on Finance and National Planning & Economic Affairs presented by Senator Musa, Mohammed Sani (Niger East).
The allegation of withheld funds by the NNPCL was highlighted by reports from the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission.
The development comes following the Office of the Auditor-General of the Federation, saying it received the necessary and complete documents required to verify the N2.7 trillion fuel subsidy claim by the NNPCL against the government.
The ICIR reported that the House of Representatives had also passed the medium-term expenditure framework (MTEF) and fiscal strategy paper (FSP) for 2025-2027.
The approval followed the adoption of the Joint Committee on Finance and National Planning’s recommendations during plenary on Wednesday, November 27.
The ICIR reports that the MTEF also outlines Nigeria’s fiscal policy objectives and macroeconomic projections for the next three years and provides a framework for annual budget preparations.
The FRA also states that MTEF shall form the anchor and the basis for the preparation of the annual budget so that policy, planning and project activities can be linked for the effectiveness of public expenditure.
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.