The Nigerian Senate has given its nod to the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), laying the foundation for a proposed N47.9 trillion budget for 2025.
The framework, a blueprint for the nation’s fiscal and economic policies over the next three years, includes a N16.4 trillion allocation for capital projects and N14.2 trillion for recurrent expenditure.
The MTEF-FSP outlines key economic assumptions such as a $75 per barrel oil benchmark for 2025, daily crude oil production at 2.06 million barrels, and an exchange rate of N1,400 to $1. The Senate’s approval underscores its agreement with these projections, which are integral to President Bola Tinubu’s fiscal policy for the coming year.
A significant portion of the plan includes a N9.22 trillion borrowing proposal, split between domestic and foreign sources. Additionally, N15.38 trillion has been earmarked for debt servicing, while N1.44 trillion is allocated for pensions and retirees’ benefits, reflecting the government’s commitment to financial stability and social welfare.
The Senate’s approval follows a comprehensive review of the fiscal strategy paper, which serves as a precursor to the formal budget presentation. The framework also includes projected GDP growth rates of 4.6% for 2025, 4.4% for 2026, and 5.5% for 2027, signaling optimism about the nation’s economic recovery and development trajectory.
President Tinubu had earlier transmitted the MTEF-FSP to the National Assembly following its endorsement by the Federal Executive Council on November 14, 2024. This approval by both legislative chambers paves the way for the implementation of fiscal measures aimed at achieving infrastructural development, economic growth, and fiscal discipline in the coming years.