The Senate at its plenary session of Tuesday, 5 December 2017, approved the report of its Joint Committees on Finance, Appropriations, and National Planning on the 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

Presenting the report, Sen. Yahaya Abdullahi (APC: Kebbi) informed Members of the Senate that the MTEF and FSP is a planning tool used by the Federal Government to define its economic, social and developmental objectives and priorities. He stated that the MTEF and FSP highlight the key assumptions behind revenue projections, strategic objectives behind its expenditure framework and fiscal targets over the period.

Sen. Abdullahi mentioned that the review of the 2017-2019 MTEF and FSP by the Joint Committees was made in collaboration with the National Assembly Budget and Research Office (NABRO) and the National Institute for Legislative Studies (NILS). According to him, an interactive session with various Ministries, Department and Agencies (MDAs) such as the Ministries of Finance, Budget and Planning, the Nigerian Customs Service, Federal Inland Revenue Service (FIRS), Debt Management Office (DMO), Office of the Accountant General of the Federation, and the Department of Petroleum Resources (DPR) was conducted to enable the Committees formulate its proposals.

Following his submissions, Sen. Abdullahi noted the recommendations of the Joint Committee on the 2018-2020 MTEF and FSP as follows:

1. The adoption of an oil output level of 2.3million barrels per day (mbpd) as proposed by the Executive in the 2018 Budget.
2. The adoption of $47 per barrel as oil benchmark price for the 2018 Budget as against $45 per barrel proposed by the Executive in the 2018 Budget.
3. The adoption of N305/$ as proposed by the Executive in the 2018 Budget. However, with the proviso that the Central Bank of Nigeria (CBN) initiate measures that will close the gap between the parallel market and the official exchange rate.
4. The adoption of the projected non-oil revenue of N5.279trillion as against N6.607trillion proposed by the Executive in the 2018 Budget.
5. The adoption of N1.699trillion as new borrowing proposed by the Executive in the 2018 Budget.
6. The adoption of a GDP growth rate of 3.5% as proposed by the Executive in the 2018 Budget
7. The constant oversight of MDAs on the implementation of projects highlighted in the 2018 Budget to ensure effective equal distribution of resources among States.
8. The amendment of relevant sections of the Fiscal Responsibility Act, 2007 to allow for MDAs to deposit a certain percentage of their gross revenue into the Consolidated Revenue Fund (CRF) rather than a percentage of their operating surplus.

Similarly, the House of Representatives approved the 2018-2020 MTEF and FSP. It would be recalled that President Muhammadu Buhari had submitted the 2018-2020 MTEF and FSP to the National Assembly on Tuesday, 17 October 2017.

Click here to view the full report of the Joint Committees