The House of Representatives has approved President Bola Tinubu’s “2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper.”
The House passed the document on Wednesday after considering and approving the recommendations of its Joint Committee on Finance and National Planning, which laid its report at today’s plenary.
Regarding the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper, Nairametrics previously reported that Tinubu had invited the House to note that the 2025 budget of the Federal Government would be prepared based on the parameters and fiscal assumptions of the approved 2025-2027 framework.
He emphasized the importance of expeditious legislative action from the National Assembly on this matter.
The decision on the framework was adjourned for further legislative action amid its committee’s report.
What transpired at the plenary
- At today’s plenary, the House passed the framework while adopting the projected oil benchmark prices, pegged at $75 per barrel for 2025, as well as $76.20 and $75.30 per barrel for 2026 and 2027, respectively.
- The framework also projects domestic crude oil production for 2025 at 2.06 million barrels per day.
- The country’s Gross Domestic Product (GDP) growth rate is projected at 4.6%, 4.4%, and 5.5% for 2025 to 2027, respectively, while the projected exchange rate is pegged at 1,400 Naira to the US Dollar for the years 2025, 2026, and 2027, according to NTA.
What you should know
The passage of the framework was part of the president’s request to the lawmakers at previous proceedings.
- He also asked the House of Representatives to approve the implementation of a new external borrowing of $2.209 billion in the 2024 Appropriation Act, as well as the National Social Investment Program Agency Establishment Amendment Bill 2024.
- Nairametrics previously reported that the Federal Executive Council (FEC) recently granted approval for a $2.2 billion financing program to support the Federal Government’s external borrowing plan.
- The decision was disclosed by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, following a briefing after Wednesday’s FEC meeting in Abuja.
- Edun emphasized the significance of this approval as a critical part of the federal government’s borrowing strategy to meet financial needs and support its economic recovery efforts.
“We just had the Federal Executive Council meeting, and I am privileged to present two memoranda to the Federal Executive Council. The first one was to complete the borrowing program of the Federal Government in terms of external borrowing with the approval of a $2.2 billion financing program,” Edun said.
The proposed financing package will include access to the international capital market, specifically targeting the issuance of Eurobonds and Sukuk bonds.
