The Senate at its plenary session of Wednesday, 22 September 2021 considered and approved the report of its Joint Committees on Finance; National Planning and Economic Affairs; Foreign and Local Debts; Banking Insurance and Other Financial Institutions; Petroleum Resources (Upstream and Downstream) and Gas on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Presenting the Joint Committee report, the Chairman, Sen. Solomon Olamilekan Adeola (APC: Lagos) explained that the MTEF and FSP provides a basic structure for the estimates and assumptions that underlie the annual budget and highlights the policy directions of the Federal Government for the next three (3) financial years. He noted that the MTEF and FSP is deliberately designed to minimize the adverse socio-economic effects of the COVID-19 pandemic and other crisis peculiar to Nigeria.
Sen. Adeola stated that the policy objective and strategy of the Federal Government is aimed at accelerating economic growth, facilitating job creation and preservation, achieving macroeconomic stability and promoting poverty reduction and equity. In view of these, the Joint Committee urged the Senate to approve the following parameters as the 2022 Revenue and Expenditure Framework of the Federal Government:
- Daily crude oil Production – 1.88mbpd;
- Benchmark oil price – USD$57 per barrel;
- Exchange rate – N410/US$;
- GDP growth rate – 4.20%;
- Inflation growth rate – 13.00%;
- FGN retained revenue – N8.36 trillion;
- Total FGN proposed expenditure – N13.98 trillion;
- Fiscal deficit – N5.62 trillion (including GOEs);
- New Borrowings – N4.89 trillion (including Foreign and domestic Borrowing;
- Statutory transfers – N613.4 billion;
- Debt Service – N3.60 trillion;
- Sinking Fund – N292 billion;
- Pension, Gratuities & Retirees Benefits – N567 billion;
- Total FGN Expenditure – N13.98 trillion
- Total Recurrent (Non-debt) – N6.21 trillion;
- Personnel Costs (MDAs) – N3.47 trillion
- Capital Expenditure (exclusive of Transfers) – N3.26 trillion;
- Special Intervention (Recurrent) – N350 billion; and
- Special intervention (Capital) – N10 billion.
According to Sen. Adeola, these key parameters as well as other macroeconomic projections driving the medium-term revenue and expenditure framework are indicative of a gradual rebound of activities in both global and domestic economy.