The Nigerian government has unveiled its Medium Term Expenditure Framework (MTEF) for 2025-2027, proposing a total expenditure of ₦47.9 trillion for the 2025 fiscal year. This ambitious plan aims to drive economic growth and development across various sectors.
The MTEF includes several critical assumptions and projections:
- Total Expenditure: ₦47.9 trillion for 2025.
- New Borrowing: ₦9.22 trillion to finance the deficit.
- Oil Benchmark: $75 per barrel.
- Oil Production: 2.06 million barrels per day.
- Exchange Rate: ₦1,400 to the dollar.
- GDP Growth Rate: Projected at 4.6% for 2025.
The MTEF is a crucial document that outlines the government’s fiscal strategy and expenditure plans over a three-year period. It serves as a guide for budget preparation and ensures that government spending aligns with its economic goals.
The proposed expenditure reflects the government’s commitment to addressing key areas such as infrastructure, education, and healthcare. “Investing in these critical sectors is essential for sustainable development,” said Finance Minister Zainab Ahmed. “Our goal is to create a more resilient and diversified economy.”
The framework also emphasizes the importance of revenue diversification. With the global oil market’s volatility, Nigeria aims to reduce its dependency on oil revenues. “We are focusing on enhancing non-oil revenue sources, including taxes and customs duties,” Ahmed added.
Debt management is another significant aspect of the MTEF. The government plans to borrow ₦9.22 trillion to finance the budget deficit, ensuring that borrowing practices remain sustainable. “We are committed to maintaining debt sustainability while financing our developmental projects,” stated the Finance Minister.
The MTEF 2025-2027 represents a balanced approach to fiscal discipline and developmental goals. Effective implementation and continuous monitoring will be key to achieving the framework’s objectives.
