Senate has approved Tinubu’s MTEF 2024-2025 document containing the N9 trillion borrowing plan.
NaijaOnPoint Nigeria reports that the Senate has approved the Medium Term Expenditure Framework (MTEF) of the President Bola Tinubu-led Nigerian government.
This Nigeria news platform understands that the Senate made the approval after the resolutions of the Senate which followed the consideration of the 2025-2027 MTEF/FSP report presented by the Chairman of the Senate Committee on Finance, Senator Sani Musa, during plenary.
The approval which came Tuesday, is for the framework of the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Based on the approval, the total spending of N47.9 trillion for 2025 and a new borrowing plan of N9.22 trillion which constitutes both domestic and foreign borrowings.
The MTEF/FSP is a projection of a three-year spending plan of the federal government. The nation’s budget is predicated on the approved framework.
The document and expenditure projection are based on an average exchange rate of ₦1,400 to a dollar and adopted the oil price benchmark of $75, $76.2, and $75.3 per barrel for years 2025, 2026, and 2027 respectively.
The approved framework also contains a daily oil production output of 2.06 million, 2.10 million, and 2.35 million barrels for the three years.
A review of the medium-term expenditure framework of the government by NaijaOnPoint showed that the Central Bank of Nigeria’s credit to the government would hit N53.6 trillion by 2027.
The net credit to government is projected to grow from N38.717 trillion in 2024, to N43.7 trillion in 2025, representing an increase of N5 trillion.
It is projected to grow up to N48.8 trillion in 2026, showing new borrowings of N5.2 trillion between 2025 and 2026.
Although Nigeria has surpassed its target for CBN credit to government in 2024, as of September, the credit to the government stood at N42 trillion as against N38 trillion projection.
CBN credit to government is a kind of loan facility that the apex bank provides to the federal government.
They are usually advances and overdrafts on government accounts at the CBN.
The aim of the financing is to make up for the shortfalls of the government.
There have been concerns about the government’s reliance on loans for financing its fiscal activities.