On Tuesday, December 3, 2024, the Senate approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), setting the stage for the federal government’s financial planning over the next three years.
In the decision, the Senate greenlighted a total expenditure of ₦47.9 trillion for 2024, with a new borrowing plan of ₦9.22 trillion, which includes both domestic and international loans.
The approval followed the presentation of the MTEF/FSP report by Senator Sani Musa, Chairman of the Senate Committee on Finance, during the plenary session.
The MTEF/FSP outlines the government’s spending projections for the years 2025 through 2027, serving as the foundation for the national budget.
Key elements of the approved framework include an exchange rate assumption of ₦1,400 to the dollar and an oil price benchmark of $75 per barrel in 2025, $76.2 in 2026, and $75.3 in 2027. Additionally, oil production estimates were set at 2.06 million barrels per day in 2025, 2.10 million in 2026, and 2.35 million in 2027.
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The Senate’s approval also allocated ₦15.38 trillion for debt servicing, with ₦1.44 trillion earmarked for pensions, gratuities, and retirees’ benefits.
The fiscal deficit was set at ₦13.08 trillion. Projected GDP growth rates were set at 4.6% for 2025, 4.4% for 2026, and 5.5% for 2027.
Furthermore, the framework includes ₦16.48 trillion for capital expenditure, excluding transfers, while statutory transfers were approved at ₦4.26 trillion, and the sinking fund was pegged at ₦430.27 billion. Recurrent expenditure, excluding debt servicing, was set at ₦14.21 trillion.
These resolutions mark a significant step in shaping Nigeria’s financial direction for the next three years, balancing fiscal discipline with targeted investments in critical sectors.
 and Fiscal Strategy Paper (FSP), setting the stage for the federal government's financial planning over the next three years.){kind=link}