Senate Passes 2021-2023 MTEF/FSP, Pegs Oil Benchmark At $40 Per Barrel

*Exchange Rate At N379/1US$

The Senate has passed the 2021-2023 Medium Term Expenditure
Framework (MTEF) and the Fiscal Strategy Paper (FSP) while pegging
the crude oil benchmark at $40 per barrel for the 2021 budget.

This was done after a harmonised report of the Joint Finance
Committee of the Senate and House of Representatives was
considered.

Chairman of the Senate Committee, Senator Olamilekan Solomon
Adeola, said after due deliberations, the joint committee also
recommended that daily crude oil production should be 1.86 million
barrels per day (mbpd); exchange rate at N379 to $1; Gross Domestic
Product (GDP) rate at three per cent; inflation growth rate at
11.95%; and the Federal Government retained revenue at N7.99
trillion.

The proposed expenditure was pegged at N13.58trn while the
fiscal deficit is N5.60trn. The new borrowing is N4.28trn (both
foreign and domestic), statutory transfers at N484.4 billion, debt
service is N3.12trn, and sinking fund is N220bn.

Other indices considered include pension, gratuities and
retirees’ benefits, N520.6bn; total expenditure, N13.58trn; and
total recurrent (non-debt) N5.66trn.

The personnel cost for FG’s Ministries, Departments and Agencies
(MDAs) is N3.05trn; capital expenditure (excluding transfers) is
N3.58trn; special intervention (recurrent) N350bn; and special
intervention (capital) is N20bn.

*Exchange Rate At N379/1US$

The Senate has passed the 2021-2023 Medium Term Expenditure
Framework (MTEF) and the Fiscal Strategy Paper (FSP) while pegging
the crude oil benchmark at $40 per barrel for the 2021 budget.

This was done after a harmonised report of the Joint Finance
Committee of the Senate and House of Representatives was
considered.

Chairman of the Senate Committee, Senator Olamilekan Solomon
Adeola, said after due deliberations, the joint committee also
recommended that daily crude oil production should be 1.86 million
barrels per day (mbpd); exchange rate at N379 to $1; Gross Domestic
Product (GDP) rate at three per cent; inflation growth rate at
11.95%; and the Federal Government retained revenue at N7.99
trillion.

The proposed expenditure was pegged at N13.58trn while the
fiscal deficit is N5.60trn. The new borrowing is N4.28trn (both
foreign and domestic), statutory transfers at N484.4 billion, debt
service is N3.12trn, and sinking fund is N220bn.

Other indices considered include pension, gratuities and
retirees’ benefits, N520.6bn; total expenditure, N13.58trn; and
total recurrent (non-debt) N5.66trn.

The personnel cost for FG’s Ministries, Departments and Agencies
(MDAs) is N3.05trn; capital expenditure (excluding transfers) is
N3.58trn; special intervention (recurrent) N350bn; and special
intervention (capital) is N20bn.