By Henry Umoru

THE Senate has approved the 2025–2027 Medium Term Expenditure Framework, MTEF and Fiscal Strategy Paper, FSP earlier submitted by President Bola Tinubu ahead of his presentation of the 2025 Appropriation Bill to the Joint session of the National Assembly  this week.

In the approved MTEF/ FSP, the Senate as adopted the projected oil benchmark prices at $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively.

In the three years projections, the Upper Chamber pegged the exchange rate at N1,400/$ for 2025, 2026 and 2027 respectively, just as it noted that the three-year projections for domestic crude oil production had a significant increase from 1.78m bpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027, respectively.

The approval yesterday was sequel to the consideration and adoption of  report of Senate joint Committees on Finance; and National Planning & Economic Affairs, chaired by Senator Sani Musa, APC,  Niger East during plenary.

The Senate further projected Gross Domestic Product, GDP growth rates of 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026 and 2027, even as also projected the inflation rates at 15.75 per cent, 14.21 per cent, and 10.04 per cent for 2025, 2026 and 2027 respectively.

It, however, demanded a reduction in the petrol prices against the backdrop of the commencement of production at the Port Harcourt refinery.

This was even as it  mandated its Committees on Finance; Petroleum (Upstream) and Petroleum (Downstream) as well as Gas to investigate reports from the Revenue Mobilisation, Allocation and Fiscal Responsibility Commission, RMAFC, alleging that the Nigerian National Petroleum Company Limited, NNPCL withheld N8.48 trillion as claimed subsidies for petrol.

It noted that the investigation would 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 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, however, directed the relevant committees to carry out in-depth investigation of such agreements by the NNPCL, Nigerian Liquefied Natural Gas, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.

According to the recommendations, “The projected oil benchmark prices are USD75, USD76.2 and

USD75.3 per barrel be approved for 2025, 2026 and 2027 respectively. The three-year projections for domestic crude oil production had a significant increase from 1.78 mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027 be approved.

“That the National Assembly, through its Committees on Finance, National Planning and other relevant Committees should carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.

“That the Committees on Finance, Petroleum Upstream, and Petroleum Downstream are tasked to investigate reports from the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission alleging that the NNPC withheld N8.48 trillion as claimed subsidies for petrol. Additionally, the investigation will address the NEITI report stating that NNPC failed to remit $2 billion (#3.6 trillion) in taxes to the Federal Government. The committees are further directed to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.

“The GDP growth rate which is projected at 4.6%, 4.4% and 5.5% for years 2025, 2026 and 2027 respectively, be approved.  The projected exchange rate which stands at NGN1400/USD for years 2025, 2026 and 2027 be approved subject however to review in early 2025 according to monetary and fiscal policies

” Inflation rates projections which are 15.75%, 14.21% and 10.04% for 2025, 2026 and 2027, be approved.

“Following the criteria in the overview of the framework for revenues and expenses, the 2025 FGN Budget proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained; new borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings; debt service was valued at NGN15.38 trillion; pensions, gratuities and retirees’ benefits stood at NGN1.443 trillion and fiscai deficit at NGN 13.08 trillion.

” Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers; statutory transfers stand at NGN4.26 trillion; Sinking Fund is projected at NGN430.27 billion.

“The Committee approves the respective figures for total recurrent (non-debt) at NGN14.21 trillion; special intervention for recurrent and capital is at NGN200 billion and NGN7 billion.

“That the National Assembly do approves the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of Federal Government owed to States, high priority judgments as well as liabilities incurred by Federal Ministries, Department and Agencies on behalf of Government.

” The Committee recommends that a quarterly investigative hearing with revenue generating agencies to track their compliance with the Fiscal Responsibility Act and punish those in clear contravention of the Act.

“That the Committee on Finance review and initiate inquiry into the implementation of the Nigerian Export Supervision Scheme (NESS) Act, specifically focusing on the inspection and monitoring of oil and gas exports by the Ministry of Finance and the Central Bank of Nigeria (CBN) to ensure effectiveness, compliance, and oversight mechanisms under the Act, identify gaps or challenges, and enhance revenue for the Government, through transparency, accountability and efficiency of export supervision in line with national economic objectives.

“That the Committees on Finance and Customs to initiate an investigative inquiry into the operations of the Import Duty Exemption Certificate (IDEC) program, with a focus on the administration of import waivers and their impact on revenue losses by the Ministry of Finance and the Nigeria Customs Service, as a way of evaluating compliance, identify systemic gaps or irregularities, and recommend measures to enhance transparency, accountability and optimize revenue generation for the nation.

“Committee recommends that a performance metrics be established for MDAs with poor financial reporting standards and mandate regular independent audits of their accounts to ensure compliance.”

Speaking during debate on the report, the chairman of the Senate Committee on Appropriations, Senator Olamilekan 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.

He said, “With the functioning of our refineries the demand for Forex will drop. With the CNG initiative, Nigerians will have an option for your information if you leave Benin to Lagos the amount of fuel is about 130,000 but with CNG you can’t use more than N48,000. Another issue to be addressed is the recurrent to-capital ratio which is very high.”

In his contribution, the 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 President of the Senate, 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.

Answering quetions from Journalists after the plenary,  Senator Sani Musa said projections made in the MTEF are achievable and realisable .

On the Tax reform bills , Senator Sani Musa who noted that   wider consultations  being done on them now are  very necessary, said, “So for me, the issue of tax reform requires wider consultation being done now .It’s not about this region or that region.

“For me, it’s about Nigeria. And what is good for me should also be good for my brothers.  And what is good for my brothers should also be good for me.

“So the answer I will give you about this is to allow the committee to allow the National Assembly to do the needful.”