{"id":2874,"date":"2022-09-06T10:50:29","date_gmt":"2022-09-06T10:50:29","guid":{"rendered":"https:\/\/placng.org\/Legist\/?p=2874"},"modified":"2022-09-06T10:50:32","modified_gmt":"2022-09-06T10:50:32","slug":"nigerias-2023-2025-mtef-points-to-dire-economic-crisis","status":"publish","type":"post","link":"https:\/\/placng.org\/Legist\/nigerias-2023-2025-mtef-points-to-dire-economic-crisis\/","title":{"rendered":"Nigeria\u2019s 2023-2025 MTEF Points to Dire Economic Crisis"},"content":{"rendered":"\n<p>The Federal Government\u2019s Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF\/FSP) paints a gloomy economic outlook for Nigeria. Minister of Finance, Budget and National Planning, Zainab Ahmed appeared before the House of Representatives Committee on Finance on Monday, 28<sup>th<\/sup> August 2022 to speak on the 2023-2025 MTEF\/FSP. According to the Minister, the projection for the 2023 national budget is an aggregate expenditure of N19.76 trillion, a 15.4% increase from the 2021 budget sum. The budget projection also puts crude oil price at $70 per barrel with production rate of 1.69 million barrels per day and an exchange rate of N435.57 to $1. The government also projects a Gross Domestic Product (GDP) growth rate of 3.7% with inflation put at 17.16%.<\/p>\n\n\n\n<p>Unbundling the budget however, it is shown that a\ndeficit of N11.3 trillion is expected with government projecting to borrow this\nsum to fund the budget. The budget deficit surpasses the deficit threshold\nstipulated by the Fiscal Responsibility Act 2007 (three per cent of the GDP)\nand would require the approval of the National Assembly. Revenue for the year\nis put at N8.46 trillion, with government projecting to spend a scandalous\nN3.36 trillion as petrol subsidy in the first half of 2023. The government\u2019s\nmanagement of the oil sector in spite of the so-called unbundling and\nprivatisation of the Nigerian National Petroleum Company (NNPC) Limited has\nbeen very questionable. <\/p>\n\n\n\n<p>Out of the projected revenue of N8.46 trillion, N1.9\ntrillion is expected to come from oil-related sources and the rest from non-oil\nsources. The sum of N9.32 trillion out of the N11.30 trillion deficit is expected\nto be financed through new borrowings comprising N7.4 trillion from domestic sources\nand N1.8 trillion from foreign sources. The sum of N206.1 billion is expected to\nbe generated as privatisation proceeds from the sale of government assets and\nN1.7 trillion from multilateral project-tied loans. <\/p>\n\n\n\n<p>The Minister noted that the 2023 budget may not make\nprovision for treasury funded capital projects as a result of the magnitude of\nthe country\u2019s debts. She also decried the challenges in oil production, which have\nadversely affected revenue generation. According to her, the sum of $3.2\nbillion spent on pipeline security to address the incidence of vandalism is not\nyielding the expected result as evidenced by the decline in oil production. <\/p>\n\n\n\n<p>The Minister noted that although Nigeria had overshot its\ncurrent budgetary allocation for debt servicing, measures are in place to mitigate\nthe situation. However, citizens are worried about the trend of Nigeria\u2019s debt\nservicing, in which more monies are borrowed to pay off existing debts. <\/p>\n\n\n\n<p>Also, the absence of concrete measures to improve revenue\ngeneration, beyond tax administration and collection raises concern about how\nthe country will recover. The challenges in crude oil production and rising\ncost of petrol subsidy continue to pose threats to revenue generation and\nutilisation, respectively. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Government\u2019s Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF\/FSP) paints a gloomy economic outlook for Nigeria. Minister of Finance, Budget and National Planning, Zainab Ahmed appeared before the House of Representatives Committee on Finance on Monday, 28th August 2022 to speak on the 2023-2025 MTEF\/FSP. According to the Minister, the projection for [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-2874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts\/2874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/comments?post=2874"}],"version-history":[{"count":2,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts\/2874\/revisions"}],"predecessor-version":[{"id":2882,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts\/2874\/revisions\/2882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/media\/2880"}],"wp:attachment":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/media?parent=2874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/categories?post=2874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/tags?post=2874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}