President Bola Tinubu has submitted the Medium-Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) for 2025-2027 to the National Assembly, requesting expeditious consideration and approval.
The President also sought approval for a fresh $2.2 billion external loan to finance the federal government’s budget deficit.
In letters read on the floors of both the Senate and the House of Representatives on Tuesday, Tinubu emphasized the importance of swift legislative action.
He noted that the 2025 budget would be based on the fiscal parameters outlined in the MTEF and FSP.
“The Senate is invited to note that, as the 2025 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2025-2027 MTEF&FSP, it is imperative to seek National Assembly’s expeditious legislative action on this submission,” Tinubu said.
Federal Government Proposes N47.9 Trillion Expenditure for 2025
The Federal Executive Council (FEC), led by Atiku Bagudu, Minister of Budget and Economic Planning, has approved the MTEF and proposed a total expenditure of N47.9 trillion for the 2025 budget, a significant increase from N28.17 trillion in 2024.
Bagudu expressed optimism that the 2025 budget would be passed and signed into law before December 2024.
$2.2 Billion Loan to Finance Budget Deficit
President Tinubu’s letter also seeks legislative approval to borrow $2.2 billion (N1.7 trillion at N800/$) to address the N9.1 trillion budget deficit.
The president cited provisions of the Debt Management Office (DMO) Act, 2003 and referenced the 2024 Appropriation Act, which already authorized N7.8 trillion in new borrowings—split between N6.06 trillion domestic borrowing and N1.77 trillion external borrowing.
“In accordance with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Act, 2003, and the approval of the Federal Executive Council, I write to request a resolution of the National Assembly to raise the sum of N1,767,610,321,779.00 (equivalent of USD2,209,512,902.22 at the Budget Exchange Rate of USD1.00/N800) to part finance the budget deficit of N9.179 trillion,” the president stated.
