Senate Passes 2025-2027 MTEF/FSP with ₦47.9 Trillion Expenditure and New Borrowing Plan
On Tuesday, December 3, 2024, the Nigerian Senate passed the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which outlines the federal government’s financial projections and expenditure plans for the next three years.
The approved expenditure framework has a total budget of ₦47.9 trillion for 2024, with a new borrowing plan set at ₦9.22 trillion, combining both domestic and foreign borrowings. The framework serves as the basis for the federal government’s budget and guides its fiscal policies.
Key components of the approved framework include:
- An exchange rate of ₦1,400 to $1 for the three years.
- Oil price benchmarks of $75 for 2025, $76.2 for 2026, and $75.3 for 2027 per barrel.
- Daily oil production projections of 2.06 million barrels for 2025, 2.10 million for 2026, and 2.35 million for 2027.
- Debt service allocation of ₦15.38 trillion.
- Pensions, gratuities, and retirees’ benefits budgeted at ₦1.443 trillion.
- A fiscal deficit of ₦13.08 trillion.
- Projected GDP growth rates of 4.6% for 2025, 4.4% for 2026, and 5.5% for 2027.
- Capital expenditure forecasted at ₦16.48 trillion, with statutory transfers amounting to ₦4.26 trillion.
- The sinking fund set at ₦430.27 billion, and total recurrent expenditure (excluding debt) pegged at ₦14.21 trillion.
This passage follows extensive discussions in the Senate, where the Committee on Finance, led by Senator Sani Musa, presented the report for the 2025-2027 fiscal years. The new framework aims to ensure the country’s economic stability and growth while managing its debt and expenditures effectively.
