The Nigerian Senate has approved the 2024–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), allowing the Federal Government to move forward with its fiscal plans.
The decision followed the presentation of a report by Senator Mohammed Sani Musa, Chairman of the Joint Committees on Finance and National Planning & Economic Affairs.
During the session on Tuesday, the Senate directed its Committees on Finance, Petroleum, and Gas to investigate allegations of withheld funds by the Nigerian National Petroleum Company (NNPC). Reports by the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission highlighted NGN 8.48 trillion in petrol subsidies and $2 billion (NGN 3.6 trillion) in unpaid taxes. The Auditor-General of the Federation also confirmed receiving documentation to verify a separate N2.7 trillion fuel subsidy claim by the NNPC.
The Senate approved an exchange rate projection of NGN 1,400 to the dollar for 2025–2027, with a review planned in 2025 based on monetary and fiscal policies. Lawmakers emphasized that any excess funds from the exchange rate would be allocated to debt servicing. Inflation rate projections for the period were set at 15.75% for 2025, 14.21% for 2026, and 10.04% for 2027. The 2025 federal budget anticipates spending of NGN 47.9 trillion, with NGN 34.82 trillion in retained revenue and NGN 9.22 trillion in new borrowing from both domestic and foreign sources. Capital expenditure is projected at NGN 16.48 trillion, statutory transfers at NGN 4.26 trillion, and sinking funds at NGN 430.27 billion.
Lawmakers also discussed reducing petrol prices in light of the expected commencement of operations at the Port Harcourt Refinery. Senator Adeola Olamilekan highlighted the Federal Government’s Compressed Natural Gas (CNG) initiative as a way to lower fuel demand and foreign exchange pressure, explaining that the cost of travel using CNG would be significantly less than petrol. Senator Yahaya Abdullahi urged support for manufacturing industries to ensure the projections in the MTEF are achievable.