$40 oil benchmark, N360/$1… Buhari sends 2021-2023 MTEF to n’assembly

President Muhammadu Buhari has sent the medium term expenditure framework (MTEF) and fiscal strategy paper (FSP) to the national assembly ahead of his presentation of 2021 budget estimates.

This comes a week after the federal executive council (FEC) approved the MTEF/FSP and  N12.66 trillion as the budget for 2021.

Budgets are predicated on the assumptions contained in the MTEF and FSP documents.

Key assumptions of the expenditure framework show that the executive fixed $40 as oil benchmark.

The federal government, which is targeting to produce 1.86 million barrels per day, pegged the exchange rate at N360 to a dollar, inflation was fixed at 11.95 percent.

The sum of N132,592 billion was targeted for non-oil gross domestic product (GDP).

In the letter accompanying the MTEF/FSP, the president said he is sending the document early so the federal lawmakers would have enough time to review it.

“It is my pleasure, I forward the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the kind consideration of the distinguished senate,” Buhari said.

“Let me seize this opportunity to express my deep gratitude, support and cooperation of the leadership and distinguished members of the senate in our collective efforts to restore the January-December financial year. In line with our commitment, we have worked very hard to achieve an earlier submission of the MTEF/FSP.

“This is to allow the national assembly time to perform its important constitutional duty to review the framework, I herewith forward the 2021-2023 MTEF/FSP as the 2021 budget will be prepared based on the parameters fiscal assumptions of the 2021-2023 MTEF/FSP.

“I seek the cooperation of the national assembly for expeditious legislative action.”