The Nigerian Senate has approved the 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). They also approved crude oil production of 1.69 million barrels per day (bpd) for 2023.
This comes as President Muhammadu Buhari is expected to present Nigeria’s 2023 budget on Friday, as finance minister, Zainab Ahmed says the federal government’s 2023 budget proposal is N19.76 trillion, with a deficit of N11.3 trillion.
The MTEF was approved following a motion for the adoption of the report by the Senate Committee on Finance.
What they said:
The Nigerian Senate revealed that as part of the concession to approve the policy, it requested that 10 out of the 63 government-own enterprises (GOEs) be exited from the budget and placed on the cost of collections to serve as a test case for others in the future.
The agencies include Nigeria Communication Commissions (NCC,) Cooperate Affairs Commission (CAC), Nigeria Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Services (FIRS), Nigeria Customs Service (NCS), Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Joint Admission and Matriculation Board (JAMB) and National Agency for Food and Drug Administration and Control (NAFDAC).
The Senate also approved daily crude oil production of 1.69 million bpd for 2023, 1.83 million BPD for 2024, and 1.83 million bpd for 2025.
What you should know
Nairametrics reported last week that President Muhammadu Buhari sent the 2023-2025 Medium Term Expenditure framework and fiscal strategy paper to the Senate for approval.
The House of Representatives Committee on Finance on the 2023-2025 Medium-Term Expenditure Framework has been sitting on the paper, as finance minister, Zainab Ahmed says the federal government’s 2023 budget proposal is N19.76 trillion, with a deficit of N11.3 trillion.
Finance Minister, Zainab Ahmed told the House of Reps that the government was projecting revenue of N8.46 trillion for 2023. She added that N1.9 trillion would come from oil-related sources while the balance would come from non-oil sources.
She added that the budget would be premised on $70 per barrel of crude oil and an exchange rate of N435.57 to the dollar, citing that oil production for 2023 was pegged at 1.69 million barrels per day, a real GDP growth rate of 3.7% and an inflation rate of 17.16% for the year.
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