In an attempt to bolster Nigeria’s economic framework, President Bola Tinubu has transmitted the Medium Term Expenditure Framework (MTEF) for 2025 to the National Assembly. This submission is part of the government’s broader strategy to enhance fiscal management and economic stability. Alongside the MTEF, President Tinubu is seeking legislative approval for a fresh external loan of $2.2 billion, which is intended to support ongoing economic reforms and infrastructure projects.
The MTEF outlines a proposed budget of N47.9 trillion for the 2025 fiscal year, marking a 35% increase from the previous year’s budget of N35.5 trillion. This expansionary budget aims to address poverty and stimulate economic growth in Nigeria.
The framework anticipates a GDP growth rate of 4.6%, with projections for crude oil prices set at $75 per barrel and oil production at 2.06 million barrels per day.
The proposed $2.2 billion loan consists of $1.7 billion from Eurobond financing and $500 million from Sukuk financing. This funding is expected to enhance the government’s financial capacity and support its macroeconomic agenda.
The submission of the MTEF is in accordance with the Fiscal Responsibility Act of 2007, which mandates that the government present its financial plans to the National Assembly at least four months before the start of the new fiscal year.
The House of Representatives has expressed the need for timely submission of the MTEF to allow adequate time for legislative scrutiny and approval of the budget, emphasizing the importance of adhering to the established budget cycle.
This initiative reflects the government’s commitment to improving Nigeria’s economic landscape and ensuring that financial resources are effectively allocated to meet the needs of its citizens.
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