Senate Passes MTEF/FSP, To Probe N8.4tn Withheld Subsidy Funds By NNPCL
To be put into action by the federal government, the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the years 2024–2026 have been approved by the Senate.
In his capacity as chairman of the Joint Committees on Finance and National Planning & Economic Affairs, Sen. Musa Mohammed Sani (Niger East) gave a report prior to the passing.
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Senate Committees on Gas, Petroleum, and Finance have been directed to probe claims that the NNPC had withheld payments totalling NGN 3.6 trillion (or $2 billion) in unpaid taxes and NGN 8.48 trillion (or petrol subsidies).
Both the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission and the Nigeria Extractive Industries Transparency Initiative (NEITI) published reports that brought attention to the accusation.
The move comes after the statement by the Office of the Auditor-General of the Federation that it has obtained all the required paperwork to validate the N2.7 trillion fuel subsidy claim that the Nigerian National Petroleum Company Limited has lodged against the federal government.
The 1,400 USD exchange rate prediction for 2025–2027 was adopted by the Senate, with a provision to reassess it in early 2025 in light of current fiscal and monetary policy.
Debt service would also be covered by any surplus above the stated sum, according to their agreement.
In view of the recent inauguration of the Port Harcourt Refinery, Senator Sani Musa (APC, Nigeria East), who is the Chairman of the Senate Committee on Appropriations, presented a report. During the discussion, members of the legislature called for a decrease in petrol prices.
According to Senator Adeola Olamilekan, who is in charge of the Senate Committee on Appropriations, the N1400 for one dollar was pushed forward because of the federal government’s compressed natural gas effort.
When our refineries are doing well, he claims, we won’t need as much foreign currency. Just so you know, the amount of gasoline needed to go from Benin to Lagos is around 130,000 Naira, but with the CNG initiative, you may just spend 48,000 Naira. Another problem that needs fixing is the high ratio of recurring expenses to total capital.
Supporting the manufacturing industry is crucial to satisfy the MTEF’s estimates, according to Senator Yahaya Abdullahi of the Peoples Democratic Party, Kebbi North.
For2025,2026, and 2017, the Senate projected an inflation rate of 15.55%, 14.21%, and 10.14%, respectively, in their resolutions.
The report states that out of a total budget of N47.9 trillion for 2025, the federal government of Nigeria will keep N34.82 trillion. Both local and international borrowings contributed to the total amount of N9.22tn in new borrowings.
The total estimated capital expenditure is 16.48 trillion naira, with statutory transfers amounting to 4.26 trillion naira and sinking funds being N430.27 billion.