Senate Passes 2021-2023 MTEF/FSP, Pegs Oil Benchmark At $40

…Exchange Rate at N379 to $1; Inflation Rate –11.95%

The Nigerian Senate on Thursday approved the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The MTEF was passed after approving the harmonized conference report of the Joint Committee of the Senate and House of Representatives.

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Chairman of Senate Committee on Finance, Senator Olamilekan Solomon Adeola, said the Conference Report was a harmonized position of both chambers upon examination of the differences contained in the 2021-2023 MTEF/FSP document.

Olamilekan said the Joint Committee of the two chambers after due deliberations gave the following recommendations: “that Daily crude oil production be pegged at 1.86mbpd; Benchmark oil price at US$40 per barrel; Exchange rate at N379 to $1USD; Gross Domestic Growth (GDP) rate at 3 percent; inflation growth rate at 11.95 percent; and FGN retained revenue at N7.99 trillion.”

The federal government proposed expenditure was put at N13.58 trillion; Fiscal deficit at N5.60 trillion; New borrowings N4.28 trillion (including Foreign and Domestic Borrowing); Statutory Transfers at N484.4 billion; Debt Service N3.12 trillion; Sinking Fund N220 billion; Pension, Gratuities and Retirees Benefits N520.6 billion; Total FGN expenditure N13.58 trillion; and Total Recurrent (Non-Debt) N5.66 trillion.

Personnel Costs for Ministries, Departments and Agencies of Government (MDAs) was pegged at N3.05 trillion; Capital Expenditure (exclusive of Transfers) at N3.58 trillion; Special Intervention (Recurrent) N350 billion; and Special Intervention (Capital) – N20 billion.

The senate has pledged commitment to pass the 2021 budget, at a special session to be held on Monday.

Senate President, Ahmed Lawan had on Wednesday said “this is in keeping with our legislative agenda of ensuring that the annual budget has a January to December cycle. We did that last year, and by the grace of God, we will do it again.”

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