Buhari has written to the Senate, seeking for the consideration and subsequent approval of the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) as required by the Fiscal Responsibility Act. President of the Senate, Senator Ahmad Lawan read the letter from President Buhari yesterday during plenary. President Buhari in the letter commended the Senate for its commitment towards sustaining the restoration of the January to December financial timeline under the ninth assembly. While seeking the expeditious consideration of the National Assembly, the President said that its timely passage would facilitate the early preparation of the 2022 budget based on approved parameters by the upper chamber.
The letter titled ‘Submission of the Federal Government of Nigeria 2022 – 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper’ read, “It is with pleasure that I forward the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the kind consideration and approval of the distinguished Senate. Let me use this medium to express my deep gratitude for the enduring collaboration and commitment of the leadership and distinguished Senators in our collective efforts to sustain the restoration of the January to December Financial year. On our part, we have worked very hard to sustain the early submission of the MTEF/FSP. This is to allow the National Assembly sufficient time to perform its important statutory duty of reviewing the framework and strategy paper. I herewith forward the 2022-2024 MTEF/FSP, as the 2022 budget of the federal government will be prepared based on the parameters and fiscal assumptions of the approved 2022-2024 MTEF/FSP.
“I seek the cooperation of the National Assembly for expeditious legislative action on the submission.” To fast track the passage, the Senate however set down the rules to enable the President of the Senate refer the communication to the appropriate committee. Thereafter, the President of the Senate refered the communication to the Joint Committees on Finance, National Planning, Banking, Insurance and other Financial institutions; Petroleum on Downstream, Upstream, Gas Resources and Foreign and local Debts. Accordingly, Lawan then asked the Committee to work on today, tomorrow and to be considered and passed tomorrow. Federal Executive Council (FEC) had on Wednesday last week approved the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) as required by the Fiscal Responsibility Act, projecting revenue generation of N6.54 trillion and N2.62 trillion to accrue to the Federation Account and VAT, respectively. The council also authorised the funding of a N5.26 trillion budget deficit through borrowings.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed who briefed State House Correspondents at the end of the meeting, had said that said she presented a memo on behalf of the ministry to FEC with a 2022 projected revenue of N6.54 trillion and N2.62 trillion to accrue to the Federation Account and VAT, respectively. The Minister who noted that this revenue is projected to increase in 2023 to 9.15 trillion, explained that the MTF FSP describes the Federal Government’s socio economic and developmental objectives and priorities for the reporting period of 2022 to 2024 as well as the fiscal strategies to be put in place, and policies to achieve in the priorities. The minister further explained that the report to council highlighted the key drivers of government’s revenue and the spending plans. “The goal for us is to improve the nation’s macro economic situation or reposition the economy on the path of inclusive diversified as well as sustainable. The MTF FSP consists of medium term macro economic projections, fiscal targets and estimates of revenue and expenditure including government’s financial obligations. We have also presented to the federal government the projected revenues for the 2022 to 2024. Specifically for 2022.
“The revenue that we expect is 6.54 trillion and 2.62 trillion to accrue to the Federation account on VAT respectively. And then there will be a net oil and gas revenue available for the Federation account account FAAC for distribution will be 6.15 1 trillion in 2022. This revenue is projected to increase in 2023 to 9.15 trillion. The total expenditure that we are expecting we have projected and approved by Council is an aggregate expenditure of 13.98 trillion Naira. This includes 1.1 trillion Naira of government owned enterprises expenditure as well as grants and donor funds donor funded projects in the sum of 62.24 billion. This means that this budget is just 3% higher than the 2021 budget in terms of the size of expenditure. We also reported to council the budget deficit and the financing items for the expenditure. The budget deficit that is projected for 2022 is 5.62 trillion, up from 5.60 trillion in 2021. This amount represents 3.05% of the estimated GDP, which is slightly above the 3% threshold that is specified in the fiscal responsibility, Act.”