- The Senate has approved the 2025-2027 Medium Term Expenditure Framework and the Fiscal Strategy Paper
- Some of the key assumptions and projections of the framework are an exchange rate of N1,400/$, oil prices and production benchmark, and GDP growth rates
- The framework was earlier approved by the House of Representatives
The Senate has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).
The approved framework contains total spending of N47.9 trillion and a new borrowing plan of N9.22 trillion, which includes 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 Wednesday, December 4.
The MTEF was considered at the Senate Committee on Supply chaired by the Senate President, Godswill Akpabio.
The MTEF is a projection of a three-year spending plan of the Federal Government, which also determines the country's annual budget for the period.
Recall that President Bola Tinubu transmitted the 2025-2027 framework to the National Assembly for approval in November and was referred to the Senate Committee on Finance for further legislative action.
The House of Representatives approved the 2025-2027 MTEF/FSP on November 19, with a N47.9 trillion budget proposal for 2025.
Key assumptions and projections of the framework
The approved framework contains key economic assumptions such as oil benchmark price, daily crude oil production, Gross Domestic Product (GDP) growth, and an exchange rate projection.
In the framework, the lawmakers approved the foreign exchange rate at N1,400/$1 and adopted the oil prices of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027 respectively.
The framework also projects daily oil production at 2.06 million, 2.10 million, and 2.35 million barrels for the three years.
It valued debt service at N15.38 trillion, pensions, gratuities, and retirees’ benefits at N1.443 trillion, and the fiscal deficit at N13.08 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.
The report read, “Capital expenditure is projected at N16.48 trillion, which is exclusive of transfers; statutory transfers stand at N4.26 trillion; the sinking fund is projected at N430.27 billion, while total recurrent (non-debt) expenditure is projected at N14.21 trillion.”
FG to allocate N6.5trn for personnel costs in 2025 due to new minimum wage
Meanwhile, TheRadar earlier reported that the Federal Government disclosed that its expenditure on personnel costs will rise by at least 60 per cent in 2025, following the implementation of the newly approved national minimum wage and consequential salary adjustments for federal civil servants.
According to the newly released Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF), the government’s personnel costs will increase by N2.46 trillion, bringing the total personnel budget to approximately N6.56 trillion for the 2025 fiscal year.
