Written by 
- Red Chamber okays N47.9tr aggregate expenditure for 2025
- Senate probes NNPCL over alleged N12.08tr withheld revenue
The Senate yesterday passed the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
It also approved the expenditure framework with a total spending of N47.9 trillion for 2025 and a new borrowing plan of N9.22 trillion for domestic and foreign borrowings.
The Red Chamber directed that the National Assembly, through its Committees on Finance, National Planning and other relevant committees, carry out in-depth investigation into Public Private Partnership (PPP) and Joint Venture Agreements (JVAs) “considered inimical to the revenue growth of the country” by the NNPCL, NLNG, and Immigration Services with a view to reconciling remittances to the Federation Account.
The Senate mandated its Committees on Finance, Petroleum Upstream, and Petroleum Downstream to investigate reports from the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission alleging that the NNPCL withheld N12.08 trillion, as claimed subsidies for petrol.
The resolutions of the Senate followed its consideration of the 2025-2027 MTEF/FSP report presented by Chairman of the Senate Joint Committee on Finance, and National Planning and Economic Affairs, Sani Musa, during plenary and co-chaired by Yahaya Abudullahi.
The MTEF/FSP is a projection of a three-year spending plan of the Federal Government, while the budget is predicated on the approved framework.
The lawmakers approved the framework with an exchange rate of N1,400 to a dollar and adopted the oil price benchmark of $75, $76.2 and $75.3 per barrel for year 2025, 2026, and 2027.
The approved framework also contains a daily oil production output of 2.06 million, 2.10 million, and 2.35 million barrels for the three years.
The Senate also approved N15.38 trillion for Debt Service while pensions, gratuities, and retirees’ benefits would gulp ₦1.443 trillion, and the fiscal deficit at ₦13.08 trillion.
The Red Chamber approved the projected gross domestic product (GDP) growth rate at 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026, and 2027.
The Senate’s report reads: “Capital expenditure is projected at ₦16.48 trillion, which is exclusive of transfers; statutory transfers stand at ₦4.26 trillion; the sinking fund is projected at ₦430.27 billion, while total recurrent (non-debt) expenditure is projected at ₦14.21 trillion.”
According to the report, the summary of the revenue and expenditure framework upon which the 2025 Federal Government’s budget will be predicated is as follows:
Daily Crude Oil Production – 2.06mbpd; Oil Price Benchmark – $75 per barrel; Exchange Rate – N1,400/USD; GDP Growth Rate – 4.6 per cent; Inflation Rate – 15.75 per cent; FGN Retained Revenue – N34.82 trillion; Proposed FGN Expenditure – N47.9 trillion; Fiscal Deficit – N13.08 trillion; New Borrowings (including local & foreign) – N9.22 trillion; Personnel Costs (MDAs) – N7.174 trillion and Pensions, Gratuities and Retirees Benefits – N1.443 trillion.
Others are: Capital Expenditure (exclusive of transfers) – N14.48 trillion; Statutory Transfers – N4.26 trillion; Debt Service – N15.38 trillion; Sinking Fund – N430.27 billion; Total Recurrent (Non-Debt) – N14.21 trillion; Special Intervention (Recurrent) – N200 billion and Special Intervention (Capital) – N7 billion.
The recommendations of the committee, as approved by the Senate, include: “The projected oil benchmark prices are: USD75, USD76.2 and USD75.3 per barrel be for 2025, 2026, and 2027.
“The three-year projections for domestic crude oil production had a significant increase from 1.78 mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027 be approved.
“That the National Assembly, through its Committees on Finance, National Planning and other relevant Committees, should carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.
“That the Committees on Finance, Petroleum Upstream, and Petroleum Downstream are tasked to investigate reports from the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission alleging that the NNPC withheld N8.48 trillion as claimed subsidies for petrol.
“Additionally, the investigation will address the NEITI report, stating that NNPCL failed to remit $2 billion (N3.6 trillion) in taxes to the Federal Government.
“The committees are further directed to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.
“The GDP growth rate, which is projected at 4.6 per cent, 4.4 per cent and 5.5 per cent for years 2025, 2026, and 2027 respectively, be approved.
“The projected exchange rate which stands at NGN1400/USD for years 2025, 2026, and 2027 be approved subject however to review in early 2025 according to monetary and fiscal policies.
“Inflation rates projections which are 15.75 per cent, 14.21 per cent and 10.04 per cent for 2025, 2026, and 2027, be approved.
“Following the criteria in the overview of the framework for revenues and expenses, the 2025 FGN Budget proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained; new borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings; debt service was valued at NGN 15.38 trillion; pensions, gratuities and retirees’ benefits stood at NGN1.443 trillion and fiscal deficit at NGN13.08 trillion.”
Other recommendations approved by the Senate include: “Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers; statutory transfers stand at NGN4.26 trillion; Sinking Fund is projected at NGN430.27 billion.
“The committee approves the respective figures for total recurrent (non-debt) at NGN14.21 trillion; special intervention for recurrent and capital is at NGN200 billion and NGN7 billion.
“That the National Assembly do approves the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of Federal Government owed to States, high priority judgments as well as liabilities incurred by Federal Ministries, Department and Agencies on behalf of Government.
“The committee recommends that a quarterly investigative hearing with revenue generating agencies to track their compliance with the Fiscal Responsibility Act and punish those in clear contravention of the Act.
“That the Committee on Finance review and initiate inquiry into the implementation of the Nigerian Export Supervision Scheme (NESS) Act, specifically focusing on the inspection and monitoring of oil and gas exports by the Ministry of Finance and the Central Bank of Nigeria (CBN) to ensure effectiveness, compliance, and oversight mechanisms under the Act, identify gaps or challenges, and enhance revenue for the Government, through transparency, accountability and efficiency of export supervision in line with national economic objectives.
“That the Committees on Finance and Customs to initiate an investigative inquiry into the operations of the Import Duty Exemption Certificate (IDEC) program, with a focus on the administration of import waivers and their impact on revenue losses by the Ministry of Finance and the Nigeria Customs Service, as a way of evaluating compliance, identify systemic gaps or irregularities, and recommend measures to enhance transparency, accountability and optimise revenue generation for the nation.
“Committee recommends that a performance metrics be established for MDAs with poor financial reporting standards and mandate regular independent audits of their accounts to ensure compliance.”
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