Senate Approves ₦47.9 Trillion Budget Framework to Boost Nigeria’s Economy

The Nigerian Senate has officially approved the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) following a comprehensive review.

The framework, which outlines a ₦47.9 trillion budget proposal for 2025, is designed to enhance strategic planning aimed at strengthening the national economy over the next three years.

It was gathered that the framework seeks to establish a solid foundation to bolster Nigeria’s economic performance during this period, thereby mitigating the hardships currently looming in the country.

The framework highlights the following measures to ensure economic growth:

• Oil benchmark prices will be set at USD 75 per barrel for 2025, USD 76.2 per barrel for 2026, and USD 75.3 per barrel for 2027.
• Crude oil daily production is projected to rise to 2.06 million barrels per day in 2025, with further increases expected, reaching 2.35 million barrels per day by 2027.
• Exchange rate will be fixed at ₦1,400 to USD1, compared to the current market rate of ₦1,700 to USD1.

To achieve the objectives of the 2025–2027 MTEF-FSP, the Senate has allocated ₦16.4 trillion for capital projects and ₦14.2 trillion for recurrent expenditure.

Additionally, the Senate approved ₦9.22 trillion in domestic and foreign borrowing to enhance infrastructural development.

Furthermore, ₦15.38 trillion has been earmarked for debt servicing, while ₦1.44 trillion is set aside for pensions and retirees’ benefits, reflecting the government’s commitment to fiscal stability and social security.

Similarly, a report by the NTA revealed that ₦16.4 trillion will be allocated to capital projects, and ₦14.2 trillion has been earmarked for recurrent expenditure.

The approved framework aligns with President Bola Ahmed Tinubu’s request to the House of Representatives for 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.