Reps approve 2025-2027 MTEF, to probe NNPC, NIS partnerships with investors

The House of Representatives has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), retaining all the parameters proposed by the executive.

The approval followed the consideration of a report submitted by the Chairman of the House Committee on Finance, James Faleke, during plenary on Wednesday.

The Committee of Supply, chaired by Deputy Speaker Ben Kalu, conducted a clause-by-clause consideration of the 15 recommendations submitted by the committee.

President Bola Tinubu transmitted the 2025-2027 rolling plan to the National Assembly for approval last week Tuesday.

Subsequently, the finance committees of the Senate and the House held a joint hearing on the proposal on Monday this week.

Based on the House’s approval, it appears lawmakers retained most of the proposals submitted by the executive.

The recommended oil prices of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027 respectively were adopted.

Meanwhile, daily oil production was fixed at 2.06 million, 2.10 million, and 2.35 million barrels for the respective years.

Additionally, the GDP growth rates projected at 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027 respectively were approved, with an exchange rate of ₦1,400 to a dollar adopted for the entire period.

The House also approved the proposed spending of ₦47.9 trillion and new borrowings of ₦9.22 trillion, comprising both domestic and foreign loans. Debt service was valued at ₦15.38 trillion, pensions, gratuities, and retirees’ benefits at ₦1.443 trillion, and the fiscal deficit at ₦13.08 trillion.

“Capital expenditure is projected at ₦16.48 trillion, which is exclusive of transfers; statutory transfers stand at ₦4.26 trillion; the sinking fund is projected at ₦430.27 billion, while total recurrent (non-debt) expenditure is projected at ₦14.21 trillion,” the report reads in part.

Accusations Against NNPC and Immigration

Meanwhile, in the report, the committee accused the state-owned oil company, NNPC Limited, the Nigeria Immigration Service (NIS), and other revenue-generating agencies of entering into public-private partnerships that are detrimental to the country’s revenue growth.

It, therefore, called for an investigation into the deals, a recommendation adopted by the House.

“The National Assembly Committees on Finance, National Planning, and other relevant committees should carry out an in-depth investigation of such agreements by the NNPC, NLNG, and Immigration Services with a view to reconciling remittances to the Federation Account,” the resolution reads.

The House also noted that “most revenue-generating agencies violate the Fiscal Responsibility Act due to the lack of punitive provisions in the Act.”

Additionally, it highlighted “non-compliance with the Nigerian Export Supervision Scheme (NESS) Act by relevant government agencies, specifically in the inspection and monitoring of oil and gas exports as well as non-oil exports.”

The House identified systemic gaps and irregularities in the operations of the Import Duty Exemption Certificate (IDEC) and observed that Federal Government Ministries, Departments, and Agencies (MDAs), as well as Government-Owned Enterprises (GOEs), are not adhering to financial reporting standards.

It resolved that “performance metrics be established for MDAs with poor financial reporting standards and that regular independent audits of their accounts be mandated to ensure compliance.”

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Debate

Several members raised concerns about some of the projections in the rolling plans, particularly the inflation rate, oil output, and growth rate.

The Minority Leader, Kingsley Chinda (PDP, Rivers), described most of the projections in the document as “over-ambitious,” adding that many of them are not feasible.

But Mr Faleke noted that the parameters are “merely projections,” explaining that “ambitious projections” can motivate agencies and investors to perform better.

The debate over the report lasted about 45 minutes. Nevertheless, none of the recommendations was altered or rejected by the House.