The Federal Government of Nigeria has approved the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the period 2025–2027. This crucial fiscal planning document outlines a proposed N47.9 trillion budget for 2025, with new borrowings amounting to N9.22 trillion.
This announcement was made by the Minister of Budget and Economic Planning, Abubakar Bagudu, following the Federal Executive Council (FEC) meeting at Aso Rock Villa, Abuja, on Thursday, November 14, 2024. The MTEF, a critical tool for fiscal policy, sets the macroeconomic assumptions and targets that guide national budgeting over the next three years.
Key Highlights of the 2025–2027 MTEF:
- Proposed 2025 Budget: N47.9 trillion, with a borrowing plan of N13.8 trillion (3.87% of GDP).
- Macroeconomic Assumptions:
- Oil price benchmark: $75 per barrel.
- Oil production target: 2.06 million barrels per day.
- Exchange rate: N1,400 to the US dollar.
- GDP growth rate: 4.6%.
- 2024 Budget Performance:
- Actual spending as of August 2024 stood at N16.98 trillion out of a prorated target of N23.37 trillion.
- Debt servicing accounted for N7.41 trillion, while N3.65 trillion was released for capital projects.
Bagudu emphasized that the MTEF reflects Nigeria’s economic resilience amid global challenges, noting a 3.19% GDP growth in the second quarter of 2024. However, he acknowledged ongoing challenges such as inflation and the need for targeted support to vulnerable populations and high-employment sectors.
Enhancing Budgetary Discipline
The MTEF also underscores the Federal Government’s focus on sustaining reforms, including:
- Deregulating petroleum prices and exchange rates.
- Lowering oil and gas production costs.
- Potential amendments to the Petroleum Industry Act (PIA) 2021 to mitigate fiscal risks.
2025 Budget Submission Timeline
Bagudu assured that the MTEF would reach the National Assembly by November 18, 2024, paving the way for an expeditious review and approval process. Despite the delayed submission, the government remains committed to maintaining the January–December budget cycle.
Conclusion
The MTEF and FSP for 2025–2027 provide a roadmap for Nigeria’s fiscal management, aiming to balance economic stability and growth. With projected increases in non-oil revenue and enhanced cooperation between the executive and legislature, the Federal Government is poised to achieve its fiscal targets while addressing pressing economic challenges.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
