The Federal Government has given its approval to the Medium Term Expenditure Framework (MTEF) for the 2025-2027 period, along with the Fiscal Strategy Paper.
The proposed budget for the period is set at N47.9 trillion, with plans to raise N9.22 trillion through new borrowings.
Minister of Budget and Economic Planning, Abubakar Bagudu, shared these details with State House correspondents after this week’s Federal Executive Council (FEC) meeting at the Aso Rock Villa, Abuja.
Bagudu explained, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, presented by the Director General of the Budget Office, Tanimu Yakubu, on the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2025-2027.”
He added that the MTEF would be sent to the National Assembly by Friday, November 15, or Monday, November 18.
Key parameters in the framework include an oil price benchmark of $75 per barrel for 2025, an oil production target of 2.06 million barrels per day, an exchange rate of N1400 to $1, and a GDP growth projection of 4.6 percent.
Regarding the budget for 2025, Bagudu noted, “The Federal Government’s budget estimate for aggregate expenditure is N47 trillion, including a borrowing of N13.8 trillion, which is 3.87 percent of the estimated GDP.”
He further stated, “This includes projections, with, for the first time, provisions for contributions to the development commissions that have been approved by the National Assembly.”
The minister confirmed that the MTEF sets the proposed budget size at N47.9 trillion, with new borrowings of N9.22 trillion aimed at covering the 2025 budget deficit. He emphasized efforts to maintain the deregulation of petroleum prices and exchange rates, as well as to reduce production costs in the Nigerian National Petroleum Corporation Limited (NNPCL), with potential amendments to the Petroleum Industry Act (PIA) 2021.
Bagudu also highlighted progress in the implementation of the 2024 budget, noting improvements in revenue collection and expenditure management. “Despite some lags in prorated targets, the overall trajectory shows that fiscal efforts are on track, with key non-oil streams performing better than anticipated,” he concluded