Nigeria’s economic blueprint for 2024-2026 receives parliamentary nod
By Sodiq Adelakun
In a decisive move, the House of Representatives of Nigeria has given its approval to the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the years 2024 through 2026.
The framework, which was passed on Tuesday, outlines a significant borrowing plan where the government is set to borrow N7.8 trillion in 2024.
Under the newly approved MTEF/FSP, the House has established oil price benchmarks for the next three years, setting the prices at $73.96, $73.76, and $69.90 per barrel for 2024, 2025, and 2026, respectively.
The daily crude oil production levels have been pegged at 1.78 million barrels per day (Mbps) for 2024, with a slight increase projected for the subsequent years, reaching 1.81 Mbps by 2026.
The exchange rate proposed by the executive for the period from 2024 to 2026 has been set at N700, N665.61, and N669.79 to the US dollar, which the House has agreed upon.
Inflation rates are anticipated to be 21.40 percent in 2024, gradually decreasing to 18.60 percent by 2026. The GDP growth rates are expected to be on an upward trajectory, starting at 3.76 percent in 2024 and potentially reaching 4.78 percent in 2026.The House has maintained the 2024 parameters of the MTEF/FSP document, which includes a proposed federal government spending of N26 trillion and retained revenue of N16.9 trillion.
The budget deficit is projected at N9 trillion, with new borrowings accounting for N7.8 trillion of that amount. Statutory transfers are expected to be N1.3 trillion, with a substantial N8.2 trillion allocated for debt service costs.
The sinking fund is marked at N243.6 billion, and pension, gratuity, and retiree benefits are set at N1.27 trillion. The total recurrent (non-debt) expenditure is projected at N10.2 trillion, with personnel costs for Ministries, Departments, and Agencies (MDAs) amounting to N4.49 trillion and capital expenditure (exclusive of transfers) at N5.9 trillion.
In a related development, the House committees on debt management, loans, and finance have recommended the dissolution and deregistration of the subsidiaries of the Nigerian Postal (NIPOST) Service following findings that they were irregular and unlawful.
Furthermore, the House has called for an investigation into the potential mismanagement of the NIPOST restructuring and recapitalization plan, including the retrieval of the N10 billion earmarked by the Ministry of Finance for the initiative.
This move signals the House’s commitment to ensuring transparency and accountability in government operations.
