Ahead of the 2025 budget presentation by President Bola Tinubu the Senate has approved the 2024-2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for implementation.
This is as the Senate launched an investigation into the Nigerian National Petroleum Company Limited (NNPCL) regarding unremitted funds amounting to N8.48 trillion, allegedly related to petrol subsidies.
The senate says the investigation will address the Nigeria Extractive Industries Transparency Initiative, NEITI report, stating that NNPCL failed to remit $2 billion (N3.6 trillion) in taxes to the Federal Government.
The approval followed the adoption of the report of Senate Joint Committees on Finance; and National Planning & Economic Affairs, chaired by Senator Sani Musa during plenary.
The Senate further directed its committees to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit, PMS also known as petrol by the NNPCL between 2020 and 2023.
It also directed the relevant committees to carry out an in-depth investigation of such agreements by the NNPCL, Nigerian Liquefied Natural Gas, NLNG, and Immigration Services to reconcile remittances to the Federation Account.
Chairman of the Senate Committee on Public Accounts, Aliyu Wadada, accused the federal inland revenue service of presenting suspicious documents tip-exed and handwritten claims is from international finance firm, aaaaJ P Morgan before his senate panel on Petroleum Profit Tax.
Senator Wadada says the Central Bank oaaaf Nigeria, CBN also failed to remit N6trilion -profit from ways & means into the Federation Account, money he said should have been added to the planned expenditure of N47.9 trillion in 2025.
A breakdown of the planned expenditure for 2025 reveals that a new borrowing of N9.22 trillion will be required to fund the budget.
Meanwhile, Capital expenditure is projected at N16.48 trillion with total recurrenat spending standing at N14.21 trillion.
Senate’s approval is however based on several economic projections – a qqqqGDP growth rate of 4.6% in 2025 that is expected to rise to 5.5% in the next two years, and the exchange rate pegged at N1,400 to the US dollar.
The senate report approved the inflation rate at 15.75% for 2025 and projects the oil benchmark price at $75.3 per barrel with a daily crude oil production of 2.06 million barrels.
The approved MTEF/FSP document is expected to provide the basis for the much anticipated 2025 budget to be presented by President Bola Tinubu.
Chairman Senate Committee on Appropriations, Senator Solomon Adeola (APC Ogun West) referenced the Federal Government’s Compressed Natural Gas, CNG, initiative as the underlying imperative for the adoption of the N1,400 to one dollar.
In his contribution, former Senate Leader, Senator Yahaya Abdullahi (PDP Kebbi North), stressed the need to support the manufacturing industries if the projections of the MTEF are to be achieved.
In his remarks, the Senate President, Senator Godswill Akpabio commended the chairman and members of the joint committees for their in-depth analysis and general good work done on the document.
(Editor: Oloyede Oworu)
