14th November 2024
By Idris Buba
The Federal Executive Council, FEC, on Thursday, approved the Medium Term Expenditure Framework for 2025-2027 and the Fiscal Strategy Paper.
The proposed budget size stands at N47.9tn, with new borrowings of N9.22tn.
Minister of Budget and Economic Planning, Atiku Bagudu, made the announcement while briefing journalists at the end of the FEC meeting presided over by President Bola Tinubu at the State House, Abuja.
According to him, FEC pegged the price of crude oil at $75 exchange rate of N1400 to 1$ dollar and oil production of 2.06million barrels per day.
Bagudu said, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, presented by the Director General of the Budget Office, Tanimu Yakubu, on the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2025-2027.”
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He noted that the Council will transmit the framework to the National Assembly on Friday, November 15, or Monday, November 18.
“For 2025, the Federal Government’s budget estimate for aggregate expenditure is N47tn, including a borrowing of N13.8tn, which is 3.87 per cent of the estimated GDP.
He added, “ We aim to sustain the commendable market deregulation of petroleum prices and the exchange rate, compel the Nigerian National Petroleum Corporation Limited to significantly lower its oil and gas production costs, and potentially amend relevant sections of the Petroleum Industry Act 2021 to address key risks to the Federation.”
He noted that the MTEF included a review of the 2024 budget implementation, highlighting promising progress in revenue collection and expenditure management.
“Despite some lags in prorated targets, the overall trajectory shows that fiscal efforts are on track, with key non-oil streams performing better than anticipated,” said Bagudu.
Bagudu added that the Federal Government is working to ensure a January-December budget circle.
