The Senate has passed the Revised 2022-2024 MTEF/FSP ahead of President Muhammadu Buhari’s budget presentation on Thursday.
After considering the report from its finance committee, the Senate on Wednesday approved the aggregate expenditure of N16.39 trillion, retained revenue of N10.3 trillion, and a fiscal deficit of N635 billion.
President Buhari had on Monday submitted the revised 2022-2024 Medium Term Fiscal Framework (MTEF) for the consideration and approval of the House of Representatives.
According to the President, the revision was necessitated by the need to reflect the new fiscal terms in the Petroleum Industry Act (PIA) 2021, as well as other critical expenditures in the 2022 Budget.
“The underlying drivers of the 2022 fiscal projections, such as oil price benchmark, oil production volume, exchange rate, GDP growth, and inflation rate reflect emergent realities and the macroeconomic outlook, and remain unchanged as in the previously approved 2022-24 MTEF&FSP,” he said in a letter addressed to the lawmakers and read during Tuesday’s plenary.
“The PIA establishes a progressive fiscal framework aimed at encouraging investment in the Nigerian petroleum industry. This significantly alters the oil and gas fiscal terms and has necessitated changes in the 2022-2024 Medium Term Fiscal Framework.
“The fiscal effects of PIA implementation are assumed to kick in by mid-year 2022. The revised 2022-24 Fiscal Framework is premised on a hybrid of January-June (based on the current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA”.