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Senate Passes 2021-2023 MTEF/FSP, Pegs Oil Benchmark at $40/B

The Senate on Thursday passed the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The passage of the document was sequel to the consideration of a harmonized conference report of the Joint Committee of the Senate and House of Representatives.

In his presentation, Chairman of the Committee on Finance, Senator Olamilekan Solomon Adeola, said the Conference Report of the joint committee of the Legislature was a harmonized position of both chambers upon examination of the differences contained in the 2021-2023 MTEF/FSP document.

According to the lawmaker, the Joint Committee of the two chambers after due deliberations recommended that daily crude Oil production be pegged at 1.86mbpd; Benchmark oil price at US$40 per barrel; Exchange rate at N379 to $1USD; Gross Domestic Growth (GDP) rate at 3 percent; Inflation growth rate at 11.95 percent; and FGN retained revenue at N7.99 trillion.

In addition, the joint committee’s report pegged total Federal Government proposed expenditure at N13.58 trillion; Fiscal deficit at N5.60 trillion; New borrowings N4.28 trillion (including Foreign and Domestic Borrowing); Statutory Transfers at N484.4 billion; Debt Service N3.12 trillion; Sinking Fund N220 billion; Pension, Gratuities and Retirees Benefits N520.6 billion; Total FGN expenditure N13.58 trillion; and Total Recurrent (Non-Debt) N5.66 trillion.

Similarly, the committee estimated Personnel Costs for Ministries, Departments and Agencies of Government (MDAs) at N3.05 trillion; Capital Expenditure (exclusive of Transfers) at N3.58 trillion; Special Intervention (Recurrent) N350 billion; and Special Intervention (Capital) – N20 billion.

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