Reps Approve 2024-2026 Budget Framework with N7.8 trillion Borrowing Next Year

The House of Representatives approved the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) on Tuesday, which includes a borrowing plan of N7.8 trillion for 2024.

For 2024, 2025, and 2026, the House of Representatives set benchmark oil prices of $73.96, $73.76, and $69.90 per barrel, respectively.

The lower chamber also set daily crude oil production levels of 1.78 Mbps, 1.80 Mbps, and 1.81 Mbps.

The executive’s proposed exchange rate for the period 2024–2026 was N700, N665.61, and N669.79 to USD$1, and these rates were likewise agreed by the lower house.

Inflation rates of 21.40% in 2024, 20.30% in 2025, and 18.60% in 2026 were proposed by the lower chamber, which also suggested GDP growth rates of 3.76%, 4.22%, and 4.78%, respectively.

Key parameters for 2024

The MTEF/FSP document’s parameters for 2024 were maintained as follows:

FGN recommended spending N26 trillion, with N16.9 trillion in retained revenue.
N9 trillion budget deficit
N7.8 trillion in new borrowings
N1.3 trillion for statutory transfers
N8.2 trillion debt service cost
N243.6 billion in the sinking fund
N1.27 trillion in pension, gratuity, and retiree benefits
Total recurrent (non-debt) of N10.2 trillion; personnel costs (MDAs) of N4.49 trillion; capital expenditure (exclusive of transfers) of N5.9 trillion.

NIPOST restructuring

In addition, the House’s committees on debt management, loans, and finance recommended winding up and deregistering the subsidiaries of the Nigerian Postal (NIPOST) Service as soon as it was determined that they were irregular and unlawful.

The House also ordered an investigation into the possible mismanagement of the NIPOST restructuring and recapitalization plan, which would involve the return of the N10 billion that the Ministry of Finance had set aside for the project.

They further stated that no tax waiver should be issued unless it is directly related to a non-governmental or non-profit organization, and that the appropriate House committee should investigate all tax waivers that have been granted since 2015 forward.