The Nigerian Senate has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
This approval, which sets the stage for the upcoming budget proposal, was based on the report from the Senate joint committees on Finance and National Planning & Economic Affairs, chaired by Senator Sani Musa.
The Senate's decision comes amid serious allegations against the Nigerian National Petroleum Company Limited (NNPCL).
Reports from the Revenue Mobilisation, Allocation and Fiscal Responsibility Commission (RMAFC) and the Nigeria Extractive Industries Transparency Initiative (NEITI) have accused NNPCL of withholding N8.48 trillion in claimed petrol subsidies and failing to remit $2 billion (N3.6 trillion) in taxes to the Federal Government.
In response, the Senate has mandated its Committees on Finance, Petroleum (Upstream and Downstream), and Gas to conduct a thorough investigation into these claims.
Senator Solomon Adeola, chairman of the Senate Committee on Appropriations, highlighted the importance of the Federal Government’s Compressed Natural Gas (CNG) initiative, noting that "with the functioning of our refineries, the demand for Forex will drop." He emphasized that the CNG initiative offers a cost-effective alternative for Nigerians, potentially reducing fuel costs significantly.
The Senate's economic projections for the next three years include an exchange rate pegged at N1,400/$, oil benchmark prices around $75 per barrel, and a notable increase in domestic crude oil production.
Additionally, GDP growth rates are expected to rise, while inflation rates are projected to decrease, reflecting a strategic focus on economic stability and growth.
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