The National assembly passed the 2018-2020 Medium Term Expenditure Framework (MTEF) on Tuesday following the adoption of the report by the Joint Committee on Finance, Appropriations and National Planning and Economic Affairs.
The presentation of the recommendations to the National Assembly was made by the Joint Committee Chair, Sen. Yahaya Abdullahi of the APC from Kebbi State.
Here are three key takeaways:
- Non Oil revenue projections was reduced by almost 6% from 5.597 trillion to 5.279 trillion which may mean that the National Assembly is not fully convinced of the diversification strategy of the Federal Government.
- Oil Benchmark was increased from the proposed $45 per barrel to $47 in a show of optimism by the National Assembly.
- The National Assembly adopted the 2.3 million barrels per day oil production output proposed by the executive.
- 1.699 trillion naira was adopted as the amount to be borrowed to fund the budget.
- The National Assembly intends to amend the Fiscal Responsibility Act and 2018 Appropriation Act – to insert a clause that makes it mandatory for the executive to seek NASS approval for any expenditure above the approved benchmarks.
- NASS adopted the projected GDP growth rate of 3.5% in the MTEF.
- FOREX rate of N305 to $1 was maintained by NASS