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The Senate has approved President Muhammadu Buhari’s revised submission of the 2022-2024 Medium Term Expenditure Framework, MTEF.
The red chamber, in its recommendation approved the aggregate expenditure of N16.39 trillion from the previous N13.98 trillion for the 2022 fiscal year.
It also endorsed the retention of N10.3 trillion revenue and N635.4 billion fiscal deficit.
These approvals were sequel to the consideration of a report by the Senate Committee on Finance, chaired by Senator Solomon Adeola (APC Lagos West) after the revised MTEF received from President Muhammadu Buhari was referred to the committee on Tuesday for expeditious consideration ahead of today’s budget presentation to the joint session of the National Assembly by the President.
The upper legislative chamber commended the Budget Office of the Federation and the Federal Ministry of Finance, Budget and National Planning for insisting that ministries, departments and agencies, MDAs submit their revenue profile as premise for being captured in the 2022 budget proposal.
In his presentation, Senator Adeola, said that gross revenue projection was decreased by N341.57 billion, from N8.870 trillion to N8.528 trillion.
According to him, deductions for federally-funded upstream projects costs and 13 percent derivation was slashed by N335.3 billion and N810.25 million, respectively.
He added that while Net Oil and Gas revenue projection declined by N5.42 billion from N6.540 trillion to N6.535 trillion, Non-oil taxes remain unchanged.
The chairman explained that the federal government’s retained revenue is projected to increase by N1.773 trillion, from N8.36 trillion to N10.13 trillion.
Senator Adeola disclosed further that the new increase to the FGN Expenditure is N5.241 trillion.
Meanwhile, President Buhari in letter to the Senate dated October 4, 2021, explained that the revision was necessitated by the need to reflect the new fiscal terms in the Petroleum Industry Act, 2021, as well as other critical expenditures in the 2022 budget.
According to him, the underlying drivers of the 2022 fiscal projections, such as oil price benchmark, oil production volume, exchange rate, GDP growth, and inflation rate reflect emergent realities and the macroeconomic outlook, and remain unchanged as in the previously approved 2022-2024 MTEF/FSP.
“The PIA established a progressive fiscal framework aimed at encouraging investment in the Nigerian Petroleum Industry.
