Senate Passes 2021-2023 Medium Term Expenditure Framework

…Pegs oil benchmark at $40 per barrel, exchange rate at N379/1US$

The Senate on Thursday passed the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), shortly before it adjourned plenary.

The passage of the document was sequel to the consideration of a harmonized conference report of the Joint Committee of the Senate and House of Representatives.

While presenting the Report, Chairman of the Committee on Finance, Senator Olamilekan Solomon Adeola (APC – Lagos West), said the Conference Report of the Senate and House of Representatives was a harmonized position of both chambers upon examination of the differences contained in the 2021-2023 MTEF/FSP document.

Adeola said that the Joint Committee of the two chambers after due deliberations recommended 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 joint committees also pegged the total Federal Government proposed expenditure 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.

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