Tinubu is seeking prompt legislative approval of the documents to guide preparation for the 2025 budget.

In a letter addressed to the President of the Senate, Godswill Akpabio, Tinubu said that the MTEF/FSP had been approved by the Federal Executive Council, FEC, during its meeting on November 10.

He said that the 2025 budget would be prepared based on the parameters and fiscal assumptions outlined in the MTF/FSP.

“It is imperative to seek the National Assembly’s expeditious legislative action on this submission.

“I trust that the Senate will consider the passage of this submission without delay,” the letter reads.

Akpabio, thereafter, directed that the document be referred to the Committees on Finance, National Planning and Economic Affairs for further review.

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The committees are expected to report back to the Senate in due course to facilitate timely deliberations and approval.

During the session, the senators voiced their support for the motion to refer the document to the relevant committees, with the motion receiving unanimous approval.

The Senate is expected to deliberate on the committees’ findings and provide a final resolution on the framework and strategy paper in the coming weeks.

The MTF/FSP serve as critical policy instruments for Nigeria’s fiscal planning, outlining revenue projections, expenditure priorities and economic assumptions that guide budget formulation.

Their timely approval is essential to ensure the smooth preparation and eventual implementation of the budget for the 2025 fiscal year.

Source: NAN

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The approval followed the adoption of a 16-point recommendations by the National Assembly Joint Committee Finance and National Planning which considered the MTEF and FSP documents.

Part of the recommendations approved by the Senate was to increase the Federal Government’s total expenditure estimates in the MTEF/FSP from N10.002 trillion to N10,729.4 trillion.

This amounts to an increase of additional N729 billion.

News Agency of Nigeria, NAN, reports that the joint committee had conducted a public hearing on the MTEF and FSP on October 2.

The committee had engaged revenue generating agencies in the country on the contents of the MTEF and FSP forwarded by President Muhammadu Buhari for consideration.

Following debates by over 20 senators on the recommendations, Senate adopted the 57dollars per barrel as crude oil benchmark price for the fiscal year 2020.

It also approved the retaining of N305 to one dollar to ensure economic stability.

It also adopted 2.18 mbpd as daily crude oil production output in 2020.

It noted that the 2.18mbpd approved would be realised, given concerted efforts by Nigerian National Petroleum Corporation, NNPC, and security agencies to combat oil theft and vandalism.

It also recommended an increase in the revenue target of Nigeria Customs Service (NCS) from N942.6 billion to N1.5 trillion, given the performance of the NCS in the last nine months.

It further recommended that N557.4 billion from the revenue increment of NCS be used to reduce borrowing by N200 billion and increase capital expenditure.

This, it said, would help decrease the size of the budget deficit from N1.7 trillion to N1.5trillion and also increase capital available to MDAs by N357 billion from N1.01trillion to N1.367 trillion.

It recommended the adoption of N1.5 trillion as the amount for new borrowing, adding that the borrowing must be tied to critical projects to increase productivity.

It also recommended the earmarking of 1 per cent of the consolidated revenue to finance basic healthcare.

It recommended that proper investigation be carried out on the electronic collection of stamp duties domiciled with the Central Bank of Nigeria, CBN, to ensue accountability and increase revenue base.

It also recommended proper investigation on NNPC to ascertain the actual cost associated with the joint venture oil agreements.

It recommended for a call for an urgent review of the Fiscal Responsibility Act and other laws of the revenue generating agencies to align with current realities.

It further urged the National Assembly to expedite action on the passage of the finance bill which would be brought along with the budget.

This, it said, the passage would make for easy implementation of the 2020 budget, most especially in the area of Value Added Tax, VAT.

Making his remark on the recommendations, President of the Senate, Dr. Ahmad Lawan, thanked the committees for the speedy consideration of the MTEF and FSP.

He said the passing of the MTEF and FSP would usher in the presentation of the 2020 budget by President Muhammadu Buhari.

Lawan said there was the need for the Federal Inland Revenue Services, FIRS, to widen the tax net to generate more revenue for capital expenditure.

Lawan said there was the need for other revenue generating agencies to provide their revenue performances, noting that only that of the NCS was indicated in the recommendation.

He also called for the diversification of the economy from a mono economy via agriculture, solid minerals and tourism.

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The MTEF and FSP documents came with a covering letter addressed to the President of the Senate, Ahmad Ibrahim Lawan.

Announcement of receipt of the document was made on Wednesday at the plenary.

President Buhari, in the letter read on the floor of the upper chamber commended the effort of the lawmakers towards ensuring a cordial working relationship between the legislature and executive arms of government.

The letter reads: “It is with pleasure that I hereby submit the 2020 – 2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate.

“Let me use this medium to express my gratitude for the much improved partnership between the legislative and the executive arms of the Federal government in our goal of making the budget process deliver better outcomes for the Nigerian people in particular.

“I note with further appreciation, the commitment and support that Distinguished Senators have continued to demonstrate. Pursuant to the provision of the fiscal responsibility Act 2007, the preparation towards the submission of the 2020 budget to the National Assembly is progressing well.”

The president stated that key developments of the global and domestic environments were taken into consideration in the preparation of the MTEF/FSP.

He added that the government strived to ensure that forecast revenues were not only realistic, but also reasonably challenging in the face of its significantly constrained fiscal space.

“Planned spending has been set at prudent and sustainable levels consistent with governments overall developmental objectives as set out in the Economic Recovery and Growth Plan (ERGP).

“Given our shared objective of returning the budget to a predictable January – December fiscal year, with effect from 2020, I hereby forward the 2020/2022 FSP to the Distinguished Senate and trust that it would be extensively considered in order to facilitate the 2020 MTEF budget preparation,” the president said.

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