Tinubu sends 2025-2027 MTEF to n’assembly, seeks approval for $2.2bn loan

President Bola Tinubu, on Tuesday, forwarded the medium-term expenditure framework (MTEF) and the fiscal strategy paper (FSP) to the national assembly for consideration and approval.

Tinubu is also seeking the approval of the senate and house of representatives for a fresh $2.2 billion loan.

The president’s request was contained in letters read on the floor of the senate and house of representatives on Tuesday.

On November 14, the federal government proposed N47.9 trillion as the total expenditure in the 2025 budget.

Atiku Bagudu, the minister of budget and economic planning, said the federal executive council (FEC) also approved MTEF for 2025-2027.

Speaking on the approval of the MTEF and fiscal strategy papers (FSP), Bagudu said the executive would put efforts in place to ensure the 2025 budget is passed and signed before December 2024.

Upon approval by the national assembly, the annual budget will rise from N28.17 billion in 2024 to N47.9 trillion in 2025.

Tinubu asked that his request be given “expenditous” approval.

“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.

Furthermore, the president seeks to raise $2.2 billion (N1.7 trillion using N800/$) to finance the the budget deficit of N9.1 trillion.

“In accordance with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act, 2003, and the approval of the Federal Executive Council, I write to request for a Resolution of the National Assembly (NASS) 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) provided as New External Borrowing in the 2024 Appropriation Act to part finance the budget deficit of N9.179 trillion,” Tinubu added.

“The Right Honourable Speaker may wish to recall that the 2024 Appropriation Act approved the sum of N7,828,529,477,860.00 as New Borrowings to part-finance the 2024 budget deficit of N9.179 trillion.

“The total New Borrowings of N7.828 trillion was further subdivided into New Domestic Borrowing of N6.061 trillion and New External Borrowing of N1.767 trillion.”

At the last federal executive council (FEC) meeting, $2.2 billion external borrowing  plan was also approved to strengthen the country’s finances and support economic reforms.

According to Wale Edun, minister of finance and coordinating minister of the economy, the financing package will be raised through a combination of eurobonds and sukuk.

He said approximately $1.7 billion is expected from the eurobond offer and $500 million from the sukuk financing.

Edun also said the borrowing would happen this fiscal year, stressing that the ultimate funding arrangement would be decided by market conditions and the transaction adviser’s counsel.