Senate Greenlights MTEF, Sets Sights On NNPCL’s Controversial ₦8.48 Trillion Subsidy Funds

The Nigerian Senate has approved the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), paving the way for the submission of the 2025 Appropriation Bill by President Bola Tinubu. The approval came after a detailed report by the Senate’s Committees on Finance and National Planning…READ MORE…

A significant move followed as the Senate launched a probe into allegations by the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission (RMAFC) that the Nigerian National Petroleum Company Limited (NNPCL) withheld ₦8.48 trillion in subsidy claims for petrol. The inquiry also delves into a report by the Nigeria Extractive Industries Transparency Initiative (NEITI) alleging NNPCL’s failure to remit $2 billion (₦3.6 trillion) in taxes from 2020 to 2023.

Key directives for the investigation include:

• Examining unremitted revenue from Premium Motor Spirit (PMS) sales.
• Reviewing agreements between NNPCL, Nigerian Liquefied Natural Gas (NLNG), and Immigration Services to reconcile remittances.

MTEF Highlights and Projections:

• Exchange Rate: ₦1,400/USD from 2025 to 2027.
• Oil Benchmark Prices: $75 to $76.2 per barrel across the period.
• GDP Growth: 4.6% in 2025, peaking at 5.5% in 2027.
• Inflation: Decreasing from 15.75% in 2025 to 10.04% in 2027.

The proposed 2025 federal budget estimates ₦47.9 trillion in spending, with ₦34.82 trillion revenue and ₦9.22 trillion in borrowings. Capital expenditure is projected at ₦16.48 trillion.

Calls for Reform:
The Senate emphasized the importance of policies like the Compressed Natural Gas (CNG) initiative to reduce forex dependency and fuel costs. Additionally, stronger taxation on luxury assets was advocated to ensure equitable contributions during economic challenges.

Transparency concerns were raised over the operations of the Port Harcourt Refinery, with demands for clarity on its output since resuming operations.

Senate President Godswill Akpabio commended the committees’ thorough analysis, urging effective implementation of strategies and accountability in governance.

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