The Senate and the House of Representatives has approved the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) following the consideration of its Reports of the Joint Committees on Finance, Appropriations, National Planning & Economic Affairs and Local & Foreign Debts.
Presenting the report of the Senate Joint Committees, the Chairman Sen. Mohammed Musa Sani (APC: Kaduna), stated that the 2024-2026 MTEF/FSP is a multi-year planning tool that is designed to communicate the developmental plans of the government highlights the fiscal parameters and assumptions for the preparation of the 2024 annual budget.
Speaking on the activities of the Joint Committees, Sen. Sani explained that public hearings on the 2024-2026 MTEF/FSP was conducted to avail Revenue Generating Agencies, the Ministries of Finance, Budget, and National planning as well as the Budget Office the opportunity to present justifications on their economic and fiscal estimates; enable scrutiny of the revenue pattern contained therein and review the revenue projections for the year 2024 -2026.
In his submission, Sen. Mohammed explained that outcomes and deliberations from the public hearing indicated that the new administration provided an enabling environment for an increased oil production volume from an average 1.2million barrels per day and 1.81million barrels per day from previous years to a projection of 1.78million barrel per day for 2024, 1.80million barrels per day for 2025, and 1.81million barrels per day for 2026.
In addition, Sen. Sani stated that the Joint Committee also observed that the Central Bank of Nigeria (CBN) had taken steps to control the inflation rate and lessen pressure on the value of Naira in the foreign exchange market. Resultantly, the CBN has estimated inflation rate to reduce from 27.33% in October 2023 to an average of 21.40% in 2024, 20.3% in 2025 and 18.6% in 2026.
In view of the observations, Sen. Sani urged the Senate to consider and approve the following as parameters for the 2024 Federal Government Revenue and Expenditure Framework as contained in the 2024-2026MTEF/FSP:
- Bench Oil Price of USD$73.96, $73.76 and $69.90 per barrel for 2024, 2025, and 2026 respectively.
- Daily crude oil production of 1.78 Mbps, 1.80 Mbps, and 1.81 Mbps, for 2024, 2025, and 2026 respectively (subject to confirmation of actual and verifiable deliveries by NNPC Ltd)
- Exchange Rate of N700, N665.61 and N669.79 to US$1
- Inflation rate of 21.40% in 2024, 20.30% in 2025, and 18.60% in 2026
- Projected New Borrowings: N7.8 trillion (including borrowing from foreign and domestic sources).
Other parameters include:
- FGN recommended spending N26 trillion, with N16.9 trillion in retained revenue.
- N9 trillion budget deficit (including GOEs)
- N1.3 trillion worth of Statutory transfers
- An estimated N8.2 trillion in debt service
- N243.6 billion in the Sinking Fund
- N1.27 trillion in pension, gratuity, and retiree benefits; and
- Total Recurrent (non-debt) of N10.2 trillion; Personnel Costs (MDAs) of N4.49 trillion.
- Capital Expenditure (exclusive of Transfers) of N5.9 trillion; Special Intervention (Recurrent) of N200 billion; and Special Intervention (Capital) of N7 billion comprise the aggregate FGN Expenditure of N26 trillion.
In the House of Representatives, the same report presented by the Chairman of the Joint Committee, Hon. James Faleke (APC: Lagos) was considered and approved at the plenary session of Tuesday, 21 November 2023
