House Approves MTEF, Pegs Exchange Rate At N1,400/$, Oil Benchmark At $75

Adedayo Akinwale in Abuja 

The House of Representatives has approved the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted by President Bola Tinubu.

To this end, the green chamber pegged the exchange rate at N1,400/$ for 2025, 2026 and 2027 respectively.

It also projected oil benchmark prices at $75, $76.2 and $75.3 per barrel for 2025, 2026 and 2027 respectively.

The resolution of the House followed the adoption of the report submitted by its Committees on Finance and National Planning, chaired by Hon. James Faleke at plenary Wednesday.

The House added that the three-year projections for domestic crude oil production had a significant increase from 1.78m bpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027.

The House further projected Gross Domestic Product (GDP) growth rates of 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026 and 2027. 

It projected the inflation rates at 15.75 per cent, 14.21 per cent, and 10.04 per cent for 2025, 2026 and 2027 respectively.

It, however, lamented that the critical agencies such as NNPCL, NLNG, Immigration Services and others that are relevant to the attainment of set revenue targets engage in Public Private Partnership and Joint Venture Arrangements that are inimical to the revenue growth of the country.

The House decried non-remittance of operating surpluses into the Federation Account by the NNPCL due to what it called under recovery with the claim that the federating units owed it the sum of N10 trillion.

It pointed out that most revenue generating agencies violate the Fiscal Responsibility Act due to the lack of punitive provisions in the Act.

The House noted: “That the GDP growth rate which is projected at 4.6 per cent, 4.4 per cent  and 5.5 per cent for years 2025, 2026 and 2027 respectively, be approved.

“That the projected exchange rate, which stands at N1,400/$ for years 2025, 2026 and 2027 be approved subject however to review in early 2025 according to monetary and fiscal policies.

“That the Inflation rates projections, which are 15.75 per cent, 14.21 per cent and 10.04 per cent for 2025, 2026 and 2027, be approved.

“That the projected oil benchmark prices are USD75, USD76.2 and USD75.3 per barrel be approved for 2025, 2026 and 2027 respectively.

“That the three-year projections for domestic crude oil production had a significant increase from 1.78 mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027 be approved.”

The House, however, directed its Committees on Finance, National Planning and other relevant committees to carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account. 

It also mandated its Committees on Finance, Petroleum Upstream, and Petroleum Downstream to investigate reports from the Revenue Mobilisation, Allocation and Fiscal Responsibility Commission (RMAFC), alleging that the NNPC withheld N8.48 trillion as claimed subsidies for petrol. 

It noted that the investigation would address the NEITI report, stating that NNPCL failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.

The House further directed its committees to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) also known as petrol by the NNPCL between 2020 and 2023.