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As President Bola Tinubu prepares to submit the 2025 Appropriation Bill to the National Assembly, the Senate on Tuesday approved the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper.
The approval followed a report presented by the Senate’s joint Committees on Finance and National Planning and Economic Affairs, chaired by Senator Sani Musa (APC, Niger East).
The Senate also initiated a probe into allegations from the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission that the Nigerian National Petroleum Company Limited (NNPCL) withheld ₦8.48 trillion in subsidy claims for petrol.
The probe will examine a Nigeria Extractive Industries Transparency Initiative (NEITI) report, which alleges NNPCL failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.
The Senate directed its committees on Finance, Petroleum (Upstream and Downstream), and Gas to investigate the unremitted revenue from the sale of Premium Motor Spirit (petrol) by NNPCL from 2020 to 2023.
The committees will also examine agreements between NNPCL, Nigerian Liquefied Natural Gas (NLNG), and Immigration Services to reconcile remittances to the Federation Account.
Key Projections in the MTEF
– Exchange Rate: ₦1,400/$ for 2025, 2026, and 2027.
– Oil Benchmark Prices: $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively.
– Domestic Crude Oil Production: From 1.78 million barrels per day (bpd) in 2024 to 2.06, 2.10, and 2.35 million bpd in 2025, 2026, and 2027.
– GDP Growth Rates: 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027.
– Inflation Rates: 15.75%, 14.21%, and 10.04% for 2025, 2026, and 2027.
The proposed 2025 federal budget includes ₦47.9 trillion in spending, with ₦34.82 trillion retained revenue and ₦9.22 trillion in new borrowings (domestic and foreign).
Capital expenditure is projected at ₦16.48 trillion, statutory transfers at ₦4.26 trillion, and sinking funds at ₦430.27 billion.
Calls for Action
Senator Solomon Adeola (APC, Ogun West), chairman of the Appropriations Committee, highlighted the importance of the Federal Government’s Compressed Natural Gas (CNG) initiative.
He emphasized its potential to reduce forex demand and fuel costs, stating, “With the functioning of our refineries, the demand for Forex will drop. With the CNG initiative, Nigerians will have an option for your information if you leave Benin to Lagos the amount of fuel is about ₦130,000 but with CNG you can’t use more than ₦48,000. Another issue to be addressed is the recurrent to-capital ratio which is very high.”
In his remarks, Senator Jimoh Ibrahim (APC, Ondo South) pushed for a transactional tax, lamenting the minimal tax payments made by the country’s wealthy elite.
He said, “They need to pay more. It is comfortable for them to pay. I know they say they generate employment but they need to pay more for their luxury assets.
“This is the area we should develop. I am looking at laws that will actually police transactional costs. Government provides incentives for your business. What we are looking at is profit from your investment.
“The GDP to tax ratio is 18%. About 72% left out of the tax net. We should not worry that 72% are not in the tax net. I am not saying we should go and tax the poor population but the rich need to do more in these difficult times.”
Former Senate Leader Yahaya Abdullahi (PDP, Kebbi North) stressed the need to support manufacturing industries to meet MTEF projections, while Senator Jimoh Ibrahim (APC, Ondo South) advocated for increased taxation on luxury assets owned by the wealthy.
Refinery Operations Under Scrutiny
The Senate Committee on Public Accounts, led by Senator Aliyu Wadada (SDP, Nasarawa West), raised concerns about transparency in the Port Harcourt refinery’s operations.
Wadada questioned the refinery’s output since it began operations, urging NNPCL to provide data on product distribution to avoid premature commendations.
He said, “The committee has written both NNPC and the federal inland revenue service.
“Federal inland revenue service responded with documents that have been tipexed and handwritten acclaimed to be from JP Morgan, this is extremely unacceptable and all efforts for the needful to be done has not been achieved.”
“On Port Harcourt refinery, our colleagues were there, they saw what they saw but the question I have is from the day NNPC said Port Harcourt Refinery has commenced operation, how many trucks have been able to lift products from Port Harcourt Refinery.
“Technically, I have this for this senate to know about Port Harcourt Refinery, and unless and until NNPCL answers this question, we will not be bambosed into rushing to commending NNPC on Port Harcourt Refinery.”
The Senate President, Senator Godswill Akpabio, commended the joint committees for their comprehensive analysis of the MTEF, while urging accountability and effective implementation of government initiatives.
