President Muhammadu Buhari has transmitted the revised 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly for consideration.
In his letter to the Senate and House of Representatives, President Buhari stated that a revision to the MTEF and FSP is necessitated by the need to reflect the new fiscal terms in the Petroleum Industry Act (PIA), 2021 which establishes a progressive fiscal framework aimed at encouraging investment in the Nigerian petroleum industry.
According to President Buhari, the changes to be made to the 2022 projections in the MTEF and FSP focuses on some key parameters captured under the following:
- Federation Account Revenue arising from the decrease and deductions in gross revenue projections, federal-funded upstream projects and Net oil and gas revenue projections.
- FGN Retained Revenue arising from an increase in the revenues of Government-Owned Enterprises (GOEs), the introduction of Education Tax and Dividend from the Bank of industry, and the FGN share of oil price royalty which is expected to be transferred to the Nigerian Sovereign Investment Authority (NSIA) based on provisions in the PIA, 2021.
- FGN Expenditure arising from an increase in additional expenditure for INEC to cater for the 2023 general elections, and for Service Wide Votes.
- Fiscal Deficit arising from an increase in aggregate deficit.
In view of this, he noted that 2022 Budget will eventually be prepared based on the assumptions of the revised 2022-2024 MTEF and FSP approved by the National Assembly.