Reps approve 2025 Budget, set ₦1400/$ exchange rate
The House of Representatives has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), paving the way for the 2025 federal budget.
The framework, submitted by President Bola Ahmed Tinubu, includes a projected exchange rate of ₦1400 to the US dollar, a crude oil price of $75 per barrel, and an oil production target of 2.06 million barrels per day.
However, lawmakers raised concerns about financial transparency, particularly regarding the Nigerian National Petroleum Corporation (NNPC), and called for an investigation into the alleged ₦8.48 trillion withheld from the Federation Account for fuel subsidies.
The House of Representatives has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), setting the stage for the 2025 federal budget. The framework, presented by President Bola Ahmed Tinubu, includes an exchange rate of ₦1400 to the US dollar, a crude oil price of $75 per barrel, and a production target of 2.06 million barrels per day.
Lawmakers raised concerns about financial transparency, particularly regarding the Nigerian National Petroleum Corporation (NNPC), and called for inquiries into allegations that NNPC withheld ₦8.48 trillion in fuel subsidy claims and failed to remit ₦2 billion in taxes between 2020 and 2023.
James Abiodun Faleke, Chairman of the House Committee on Finance, emphasized that the framework aims to drive economic growth and sustainable development. While the exchange rate of ₦1400 to the dollar was confirmed, lawmakers opposed the 15.75% inflation rate forecast, calling it too optimistic. They proposed a more cautious approach, suggesting an oil price of $77 per barrel and a reduced production target of 2 million barrels per day.
The House also approved a Promissory Note Programme to settle federal liabilities, endorsed quarterly hearings to enforce compliance with the Fiscal Responsibility Act, and initiated reviews of the Nigerian Export Supervision Scheme (NESS) Act and the Import Duty Exemption Certificate (IDEC) program.
The 2025 budget, pegged at ₦47.9 trillion, includes ₦16.48 trillion for capital expenditure and ₦14.21 trillion for recurrent expenditure, with a projected fiscal deficit of ₦13.08 trillion.
Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.
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