Nigerian Senate Passes 2021-2023 MTEF/FSP, Pegs Total at Expenditure at $35bn

The Nigerian Senate on Thursday passed the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) shortly before it adjourned plenary.

The passage of the document was sequel to the consideration of a harmonized conference report of the Joint Committee of the Senate and House of Representatives.

In his presentation, Chairman of the Committee on Finance, Senator Olamilekan Solomon Adeola said the Conference Report of the Senate and House of Representatives was a harmonized position of both chambers upon examination of the differences contained in the 2021-2023 MTEF/FSP document.

According to the lawmaker, the Joint Committee of the two chambers after due deliberations gave the following recommendations: “that Daily crude oil production be pegged at 1.86 million barrels per day (mbpd); Benchmark oil price at US$40 per barrel; Exchange rate at N379 to $1USD; Gross Domestic Growth (GDP) rate at 3 percent; inflation growth rate at 11.95 percent; and FGN retained revenue at N7.99 trillion”.

In addition, Total Federal Government proposed expenditure was pegged at N13.58 trillion (about $35bn); Fiscal deficit at N5.60 trillion (about $14bn); New borrowings N4.28 trillion (about $11.2bn) – including Foreign and Domestic Borrowing; Statutory Transfers at N484.4 billion (about $1.2m); Debt Service N3.12 trillion (about $8bn); Sinking Fund N220 billion (about $567m); Pension, Gratuities, and Retirees Benefits N520.6 billion; Total FGN expenditure N13.58 trillion (about $35bn); and Total Recurrent (Non-Debt) N5.66 trillion (about $14.6bn).

Personnel Costs for Ministries, Departments, and Agencies of Government (MDAs) was put at N3.05 trillion; Capital Expenditure (exclusive of Transfers) at N3.58 trillion; Special Intervention (Recurrent) N350 billion; and Special Intervention (Capital) – N20 billion.

By Abel Ejikeme

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