Senate Approves Fiscal Strategy Paper and MTEF, Orders Probe into NNPCL Subsidy Claims

In preparation for President Bola Tinubu's 2025 budget presentation to the National Assembly, the Senate on Tuesday approved the Fiscal Strategy Paper (FSP) and Medium Term Expenditure Framework (MTEF) for 2025–2027. The approval followed the adoption of a report by the Senate joint committees on finance and national planning, chaired by Senator Sani Musa (APC, Niger East), during a plenary session.

As part of its resolutions, the Senate instructed its Finance Committees to investigate reports from the Revenue Mobilisation, Allocation and Fiscal Responsibility Commission (RMAFC) that the Nigerian National Petroleum Company Limited (NNPCL) withheld N8.48 trillion in alleged petrol subsidies. The Nigeria Extractive Industries Transparency Initiative (NEITI) also revealed that the NNPCL failed to remit $2 billion (N3.6 trillion) in taxes to the Federal Government.

Additionally, the Senate tasked its committees with verifying the total unremitted revenue from the NNPCL's sale of Premium Motor Spirit (PMS) between 2020 and 2023. To ensure accountability, it ordered a thorough reconciliation of remittances by the NNPCL, Nigerian Liquefied Natural Gas (NLNG), and Immigration Services to the Federation Account.

The Senate’s three-year crude oil production projections show an increase from 1.78 million barrels per day in 2024 to 2.06 million, 2.10 million, and 2.35 million barrels per day in 2025, 2026, and 2027, respectively. It also forecasted GDP growth rates of 4.6%, 4.4%, and 5.5%, alongside inflation rates of 15.75%, 14.21%, and 10.04% for the same years.

Given the anticipated commencement of operations at the Port Harcourt refinery, the Senate called for a reduction in petrol prices. Senator Solomon Adeola (APC, Ogun West), chairman of the Senate Committee on Appropriations, highlighted the Federal Government’s Compressed Natural Gas (CNG) project as a critical initiative to stabilize the exchange rate at N1,400 to $1.

“With the functioning of our refineries, the demand for Forex will drop. The CNG initiative will provide an affordable alternative. For instance, traveling from Benin to Lagos with CNG will cost around N48,000, compared to N130,000 using petrol,” he said.

Former Senate Leader Senator Yahaya Abdullahi (PDP, Kebbi North) emphasized the importance of supporting the manufacturing sector to achieve the MTEF’s economic projections.

The 2025 budget proposal projects a total expenditure of N47.9 trillion, with N34.82 trillion retained revenue. New borrowings are estimated at N9.22 trillion, comprising domestic and foreign debt. Capital expenditure is pegged at N16.48 trillion, while statutory transfers and sinking funds stand at N4.26 trillion and N430.27 billion, respectively.

Senate President Godswill Akpabio commended the joint committees for their diligent work, stating that the approved frameworks would provide a solid foundation for the President’s upcoming budget presentation.