Quote from Alex bobby on December 17, 2024, 9:15 AM

President Bola Ahmed Tinubu Postpones Presentation of N47.9 Trillion 2025 Budget to December 18, 2024

The much-anticipated presentation of Nigeria’s 2025 national budget by President Bola Ahmed Tinubu has been postponed. Initially scheduled for Tuesday, December 17, 2024, the budget presentation will now take place on Wednesday, December 18, 2024.

According to a report by Vanguard, credible sources within the Senate revealed that the shift in schedule was confirmed by a top-ranking management staff member of the National Assembly. While an official statement regarding the postponement is yet to be released, it is expected to be issued in the coming hours.

Background: Medium-Term Expenditure Framework and Fiscal Strategy Paper Approval

The postponement of the budget presentation comes on the heels of the Senate’s approval of the 2025-2027 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) on December 3, 2024. These documents serve as the foundational blueprint for the federal government’s fiscal policy and budgetary allocations over the next three years.

The approved MTEF outlines a proposed total spending of N47.9 trillion for the 2025 fiscal year, along with projections for subsequent years. It also features a significant borrowing plan of N9.22 trillion, comprising both domestic and foreign loans. This borrowing strategy reflects the government’s effort to finance its expenditures and critical developmental projects amidst economic challenges.

Key Highlights of the MTEF and Fiscal Strategy Paper

The 2025-2027 Medium Term Expenditure Framework (MTEF) incorporates the following economic assumptions:

1. Exchange Rate Projection: The MTEF sets the exchange rate at N1,400 to a dollar, which will serve as a guiding benchmark for revenue and expenditure calculations.
2. Oil Price Benchmarks:
   • $75 per barrel in 2025
   • $76.2 per barrel in 2026
   • $75.3 per barrel in 2027

   These oil price assumptions reflect the government’s cautious optimism regarding global oil market stability. Given Nigeria’s dependence on crude oil revenue, the benchmarks are crucial in determining the fiscal sustainability of the national budget.

3. Borrowing Plan: The approved borrowing plan of N9.22 trillion signals the government’s reliance on credit to meet revenue shortfalls and fund key infrastructural projects. This borrowing includes a mix of domestic and external loans, aiming to ensure minimal disruption to ongoing and future development initiatives.
4. Spending Focus: While specific budgetary allocations are yet to be presented, the MTEF emphasizes fiscal discipline, improved revenue generation, and prudent spending across key sectors. This is particularly vital as Nigeria continues to navigate global economic headwinds and domestic challenges, including inflation and foreign exchange volatility.

Importance of the MTEF in Budget Planning

The Medium Term Expenditure Framework (MTEF) serves as a strategic fiscal plan that enables the government to manage its financial resources effectively. It outlines revenue projections, expenditure limits, and borrowing strategies, providing a three-year roadmap for Nigeria’s fiscal policy. The budget presentation, which is based on the MTEF, offers an opportunity for the federal government to detail its plans for economic growth, infrastructure development, poverty reduction, and job creation.

The adoption of realistic oil price benchmarks and exchange rate projections is critical to ensuring that the budget remains implementable and sustainable. By approving the MTEF and FSP, the Senate has paved the way for a comprehensive and transparent budget presentation by President Tinubu.

Implications of the Postponement

The shift in the budget presentation date raises a few questions regarding the government’s preparedness. However, postponements are not uncommon in Nigeria’s legislative history. The decision to push the presentation to December 18, 2024, may provide the executive and legislative arms of government with additional time to finalize budgetary details and address any outstanding concerns.

Given the economic challenges Nigeria faces, stakeholders are keen to see how the N47.9 trillion budget will address pressing issues such as:

• Rising inflation and cost of living
• Unemployment and job creation
• Infrastructure deficits in transportation, energy, and healthcare
• Diversification of the economy away from oil dependency
• Stabilization of the Naira and Forex management

Conclusion

The postponement of President Bola Ahmed Tinubu’s presentation of the N47.9 trillion 2025 budget to December 18, 2024, highlights the significance of this fiscal document in Nigeria’s economic planning. With the recent approval of the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, the government has laid the groundwork for prudent fiscal management over the next three years.

As Nigerians await the full details of the 2025 budget, attention will be focused on how the federal government plans to address economic challenges, ensure fiscal sustainability, and improve the lives of its citizens. The official statement regarding the postponement is expected to shed more light on the reasons behind the shift, as stakeholders prepare for what is expected to be a pivotal moment in Nigeria’s fiscal calendar