Senate approves 2025-2027 MTEF/FSP

The Senate on Tuesday, December 2024, passed the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The Senate also approved the expenditure framework with a total spending of ₦47.9 trillion for 2014 and a new borrowing plan of ₦9.22 trillion which constitutes both domestic and foreign borrowings.

The resolutions of the Senate followed its consideration of the 2025-2027 MTEF/FSP report presented by the Chairman of the Senate Committee on Finance, Senator Sani Musa, during plenary.

The MTEF/FSP is a projection of a three-year spending plan of the federal government. The nation’s budget is predicated on the approved framework.

The lawmakers approved the framework with an exchange rate of ₦1,400 to a dollar and adopted the oil price benchmark of $75, $76.2, and $75.3 per barrel for years 2025, 2026, and 2027 respectively.

“The approved framework also contains a daily oil production output of 2.06 million, 2.10 million, and 2.35 million barrels for the three years.

The Senate also approved the sum of 15.38 trillion for Debt Service while pensions, gratuities, and retirees’ benefits would gulp ₦1.443 trillion, and the fiscal deficit at ₦13.08 trillion.

The GDP growth rate projected at 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027 respectively were approved.

According to the report, the “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.”