President Bola Tinubu, on Tuesday, forwarded the medium-term
expenditure framework (MTEF) and the fiscal strategy paper (FSP) to the
national assembly for consideration and approval.
Tinubu is also seeking the approval of the senate and house
of representatives for a fresh $2.2 billion loan.
The president’s request was contained in letters read on the
floor of the senate and house of representatives on Tuesday.
On November 14, the federal government proposed N47.9 trillion as the total expenditure in the 2025 budget.
Atiku Bagudu, the minister of budget and economic planning,
said the federal executive council (FEC) also approved MTEF for 2025-2027.
Speaking on the approval of the MTEF and fiscal strategy
papers (FSP), Bagudu said the executive would put efforts in place to ensure
the 2025 budget is passed and signed before December 2024.
Upon approval by the national assembly, the annual budget
will rise from N28.17 billion in 2024 to N47.9 trillion in 2025.
Tinubu asked that his request be given “expenditous”
approval.
“The Senate is invited to note that, as the 2025 budget of
the Federal Government will be prepared based on the parameters and fiscal
assumptions of the approved 2025-2027 (MTEF&FSP), it is imperative to seek
National Assembly’s expeditious legislative action on this submission,” Tinubu
said.
Furthermore, the president seeks to raise $2.2 billion (N1.7
trillion using N800/$) to finance the the budget deficit of N9.1 trillion.
“In accordance with the provisions of Sections 21(1) and
27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act, 2003, and
the approval of the Federal Executive Council, I write to request for a
Resolution of the National Assembly (NASS) to raise the sum of
N1,767,610,321,779.00 (equivalent of USD2,209,512,902.22 at the Budget Exchange
Rate of USD1.00/N800) provided as New External Borrowing in the 2024
Appropriation Act to part finance the budget deficit of N9.179 trillion,”
Tinubu added.
“The Right Honourable Speaker may wish to recall that the
2024 Appropriation Act approved the sum of N7,828,529,477,860.00 as New
Borrowings to part-finance the 2024 budget deficit of N9.179 trillion.
“The total New Borrowings of N7.828 trillion was further
subdivided into New Domestic Borrowing of N6.061 trillion and New External
Borrowing of N1.767 trillion.”
At the last federal executive council (FEC) meeting, $2.2
billion external borrowing plan was also
approved to strengthen the country’s finances and support economic reforms.
According to Wale Edun, minister of finance and coordinating
minister of the economy, the financing package will be raised through a
combination of eurobonds and sukuk.
He said approximately $1.7 billion is expected from the
eurobond offer and $500 million from the sukuk financing.
Edun also said the borrowing would happen this fiscal year,
stressing that the ultimate funding arrangement would be decided by market
conditions and the transaction adviser’s counsel.
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