2025 Budget: Senate approves President Tinubu’s 2025-2027 Medium-Term Framework

According to a report by NTA, the proposed budget includes N16.4 trillion allocated to capital projects, while N14.2 trillion is earmarked for recurrent expenditure.

This 2025–2027 MTEF-FSP serves as a guide for budgeting and economic planning over the next three years. By approving it, the Senate has agreed to the fiscal and economic assumptions within the framework. The nation’s budget is predicated on this framework.

Key economic assumptions such as oil benchmark price, daily crude oil production, GDP growth, and an exchange rate projection of N1,400/$1 were also approved.

This move follows a comprehensive review of the framework, which serves as a guide for the nation’s fiscal and economic strategy over the next three years.

The Senate’s decision on the framework includes several key financial allocations. A total of N16.4 trillion has been earmarked for capital projects, while N14.2 trillion is allocated to recurrent expenditure.

The Senate also approved a N9.22 trillion borrowing plan, covering both domestic and foreign borrowings.

Additionally, the N15.38 trillion set aside for debt servicing and N1.44 trillion for pensions and retirees’ benefits reflect the government’s priority on fiscal stability and social security.

Several economic assumptions were also approved as part of the framework:

The passage of the framework was part of the president’s request to the lawmakers at previous proceedings.

He also asked the House of Representatives to approve 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.