…Approves Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP)
The Senate has mandated an investigation into allegations that the Nigerian National Petroleum Company Limited (NNPCL) illegally withheld N8.48 trillion as claimed petrol subsidies.
The allegation was made by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
The investigation, which will be conducted by the Committees on Finance, Petroleum (Upstream), Petroleum (Downstream), and Gas, will also address findings by the Nigeria Extractive Industries Transparency Initiative (NEITI) report.
The NEITI report alleged that NNPCL failed to remit $2 billion (N3.6 trillion) in taxes to the Federation Account.
The Senate further directed its committees to verify the cumulative amount of unremitted revenue from the sale of Premium Motor Spirit (PMS) by NNPCL between 2020 and 2023.
Additionally, the committees will scrutinize revenue remittance agreements involving NNPCL, Nigerian Liquefied Natural Gas (NLNG), and Immigration Services.
Also, ahead of the 2025 budget presentation by President Bola Ahmed Tinubu, the Senate on Tuesday approved the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
This decision follows the adoption of a report presented by the Senate Joint Committees on Finance, and National Planning & Economic Affairs, chaired by Senator Sani Musa (APC, Niger East), during plenary.
The Senate made notable projections for the 2025–2027 period:
Exchange rate: N1,400 to $1 for all three years.
Oil benchmark prices: $75 per barrel in 2025; $76.2 in 2026; & $75.3 in 2027.
Domestic crude oil production: To Increase from 1.78 million barrels per day (bpd) in 2024 to 2.06 million bpd in 2025; 2.10 million bpd in 2026, & 2.35 million bpd in 2027.
GDP growth rates: 4.6% (2025), 4.4% (2026), and 5.5% (2027).
Inflation rates: 15.75% (2025), 14.21% (2026), and 10.04% (2027).
The Federal Government’s proposed 2025 budget is projected at N47.9 trillion, with retained revenue of N34.82 trillion. New borrowings of N9.22 trillion will be split between domestic and foreign sources. The capital expenditure is set at N16.48 trillion, statutory transfers at N4.26 trillion, and sinking funds at N430.27 billion.
During the debate, Senator Solomon Adeola (APC, Ogun West), chairman of the Senate Committee on Appropriation, highlighted the Federal Government’s Compressed Natural Gas (CNG) initiative as a potential game changer.
“With functioning refineries and the CNG initiative, the demand for foreign exchange will drop. For instance, traveling from Benin to Lagos costs about N130,000 with petrol, but with CNG, it’s less than N48,000,” Adeola said.
Senator Yahaya Abdullahi (PDP, Kebbi North), a former Senate Leader, emphasized the need for support to manufacturing industries to meet MTEF projections.
Commendations and Next Steps
Senate President, Godswill Akpabio lauded the joint committees for their thorough analysis and work on the MTEF/FSP document.
Fielding questions after the plenary, Senator Sani Musa expressed confidence in the achievability of the projections and underscored the importance of ongoing consultations on tax reform bills.
“The issue of tax reform requires wider consultation. It’s not about regions; it’s about what benefits all Nigerians,” Musa stated.
The stage is set for President Tinubu’s presentation of the 2025 budget to the National Assembly later this week.
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