The Senate has approved the 2024–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), allowing for its implementation by the Federal Government.
This decision followed the presentation of a report by Senator Mohammed Sani Musa, chairman of the Joint Committees on Finance, National Planning, and Economic Affairs.
In a significant move, the Senate has tasked its Committees on Finance, Petroleum, and Gas to investigate allegations that the Nigerian National Petroleum Company (NNPC) has withheld funds, including NGN 8.48 trillion in petrol subsidies and $2 billion (approximately NGN 3.6 trillion) in unpaid taxes.
These allegations were based on reports by the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission.
This action comes after the Office of the Auditor-General announced that it had received all necessary documentation to verify NNPC’s NGN 2.7 trillion fuel subsidy claim.
The Senate also approved a projected exchange rate of NGN 1,400 to $1 for 2025–2027, with a provision for a review in early 2025, depending on prevailing fiscal and monetary conditions. Lawmakers agreed that any excess revenue from exchange rates would be directed toward debt servicing.
During debates on the framework, Senator Sani Musa and other lawmakers called for reduced petrol prices in light of the imminent operation of the Port Harcourt Refinery.
Senator Adeola Olamilekan pointed to the Federal Government’s Compressed Natural Gas (CNG) initiative, explaining that it would reduce the demand for foreign exchange and provide a more affordable alternative to petrol.
“With our refineries functioning, the demand for forex will drop significantly. For instance, traveling from Benin to Lagos costs about NGN 130,000 using petrol, but with CNG, it would cost no more than NGN 48,000,” Olamilekan said.
The Senate also adopted inflation rate projections of 15.75%, 14.21%, and 10.04% for 2025, 2026, and 2027, respectively.
According to the MTEF recommendations, the 2025 federal budget proposes total expenditure of NGN 47.9 trillion, with NGN 34.82 trillion in retained revenue and NGN 9.22 trillion in new borrowings, both domestic and foreign.
Capital expenditure is estimated at NGN 16.48 trillion, statutory transfers at NGN 4.26 trillion, and sinking funds at NGN 430.27 billion.
Senator Yahaya Abdullahi (PDP, Kebbi North) stressed the importance of supporting the manufacturing sector to achieve the MTEF’s projections. “If we want these figures to become a reality, strengthening our local industries is non-negotiable,” he noted.
The Senate’s actions highlight its commitment to fiscal oversight and ensuring transparency in public finance management.
