- The House of Representatives approved the 2025-2027 Medium Term Expenditure Framework, setting the stage for President Tinubu’s 2025 budget presentation
- Key highlights include an oil benchmark of $75 per barrel and projected inflation rates of 15.75% for 2025
The House of Representatives has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), submitted by President Bola Ahmed Tinubu. This approval lays the groundwork for the president’s presentation of the 2025 budget.
The MTEF/FSP outlines key fiscal parameters for the annual budget, including projected exchange rates, oil benchmarks, and inflation rates.
The approval followed a clause-by-clause review at the Committee of the Whole, based on reports presented by the Finance, National Planning, and Economic Development Committees.
- Oil Benchmark Prices: $75 (2025), $76.2 (2026), and $75.3 (2027) per barrel.
- Exchange Rate: Set at ₦1,400/USD for 2025, 2026, and 2027.
- Inflation Projections: 15.75% (2025), 14.21% (2026), and 10.04% (2027).
- Daily Oil Production Targets: Increased from 1.78 mbpd to 2.06 mbpd (2025), 2.10 mbpd (2026), and 2.35 mbpd (2027).
- GDP Growth Rates: Projected at 4.6% (2025), 4.4% (2026), and 5.5% (2027).
The total proposed budget for 2025 is ₦47.9 trillion (excluding transfers). Key allocations include:
- Debt Service: ₦15.38 trillion.
- Capital Expenditure: ₦16.48 trillion.
- Fiscal Deficit: ₦13.08 trillion.
The retained revenue for the year is estimated at ₦34.82 trillion, in line with the framework’s revenue and expenditure criteria.