The Federal Government of Nigeria, during the Federal Executive Council (FEC) meeting on Thursday approved the Medium Term Expenditure Framework and the Fiscal Strategy Paper for 2025 – 2027 fiscal year.
The MTEF revealed a proposed budget of N47.9tn, with a borrowing of 9.22tn.
The Minister of Budget and Economic Planning, Atiku Bagudu disclosed the details of the budget while speaking to State House Correspondents, after the week’s FEC meeting.
According to the minister, the budget will be presented to the Nation Assembly on Friday, November 15, or Monday, November 18.
Bagudu said, “The Federal Executive Council approved the memorandum by the Ministry of Budget and Economic Planning presented to the Director General of the Budget Office, Tanimu Yakubu on the Medium Term Expenditure Framework and Fiscal Strategy for 2025 – 2027.”
The minister outlined the key parameters of the budget, which include: a Gross Domestic Product (GDP) growth rate of 4.6 percent, an oil price benchmark of $75 per barrel in 2025, oil production of 2.06 million barrels per day, and an exchange rate of N1400 to $1.”
He said, “The federal government’s aggregate expenditure for 2025 is estimated at N47tn, including a borrowing of N13.8tn, which is 3.78 percent of the estimated GDP.”
“This includes projection, especially for the first time, provisions for contribution to the development commissions that have been approved or are in the process of being approved by the National Assembly.”
“The fiscal objectives were conservative because we want to steady the course much as we believe the projections will be exceeded.”
He added, “The budget size approved for presentation to the National Assembly in the MTEF is N47.9tn with new borrowings of N9.22tn to finance the budget deficit of 2025. We aim to sustain the commendable market deregulation of petroleum prices and the exchange rate, and compel the Nigerian National Petroleum Corporation Limited to significantly lower its oil and gas production cost.”
Bagudu further noted that the MTEF included reviews of the 2024 budget implementation, pointing out promising projects in revenue collection and expenditure management.
