The Nigerian Senate has approved the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), paving the way for the Federal Government’s N47.9 trillion budget proposal for 2025.
The authorised framework allots N14.2 trillion for ongoing expenses and N16.4 trillion for major projects. The three-year economic and fiscal planning guideline, known as the MTEF-FSP, sets important guidelines for the nation’s yearly budgets.
Key Projections and Economic Assumptions
The Senate endorses critical components of the framework, including:
- Oil Benchmark Price: $75 per barrel for 2025, $76.2 for 2026, and $75.3 for 2027.
- Daily Oil Production: 2.06 million barrels per day in 2025, 2.10 million barrels in 2026, and 2.35 million barrels in 2027.
- Exchange Rate: N1,400 per dollar, despite concerns about the prevailing market rate of N1,700 per dollar.
- GDP Growth Rate: 4.6% in 2025, 4.4% in 2026, and 5.5% in 2027.
The framework includes a borrowing plan of N9.22 trillion, covering both domestic and foreign loans.
Budget Breakdown
The MTEF-FSP projects N16.48 trillion for capital expenditure, excluding statutory transfers, and N4.26 trillion for statutory transfers. Recurrent expenditure, excluding debt servicing, is set at N14.21 trillion, while debt servicing is budgeted at N15.38 trillion. Additionally, N1.44 trillion is allocated for pensions and retirees’ benefits.
Legislative and Executive Actions
This approval follows the House of Representatives’ endorsement of the MTEF-FSP on November 19, 2024. President Bola Tinubu transmitted the framework to the National Assembly after its adoption by the Federal Executive Council on November 14, 2024.
President Tinubu affirms that the framework’s budgetary assumptions and parameters form the basis of the 2025 budget plan, highlighting the government’s dedication to sustainable economic growth and fiscal restraint.
