The Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, CON, addressed the Senate Press Corps today following the passage of the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) by the Senate.
Senator Musa provided a detailed account of the deliberations and decisions taken during the consideration of the MTEF/FSP. He explained that the framework was reviewed based on inputs from key government agencies, and comprehensive comparisons were made to ensure realistic projections.
Key Highlights from the Briefing:
1. Economic Parameters and Projections:
Revenue projections and debt-to-GDP ratios were analyzed, with the outlook suggesting a positive trajectory.
Economic assumptions, including crude oil prices, production output, foreign exchange rates, and inflation, were critically examined.
Inflation, currently at double digits, is projected to reduce to 15.75% by 2025, while GDP growth is expected to reach 4.6%.
2. NNPC Remittances and Production Output:
Concerns about non-remittance by the NNPC were addressed, with the issue referred to relevant committees for further investigation.
The methodology used to ascertain crude oil production output will also be scrutinized by the Committees on Finance, Petroleum (Upstream and Downstream), Gas, and National Planning.
3. Revenue Allocation and FAAC Meetings:
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) was tasked with providing clarity on issues discussed during FAAC meetings, particularly on revenue distribution.
4. Fiscal Recommendations:
The Senate approved all recommendations submitted by the Finance Committee, aiming to enhance fiscal responsibility and economic stability.
Responding to questions on the Tax Reform Bills from reporters during the briefing:
Senator Musa emphasized that tax, while important, is not the sole driver of economic growth. According to him, “What transforms economies is production; tax revenues are derived from robust production activities.” He highlighted the need to secure borders, combat smuggling, and achieve targeted inflation rates to ensure sustainable economic growth.
The Senator reaffirmed the commitment of the Senate to fiscal discipline and economic development, noting that the approved MTEF/FSP lays the foundation for the 2025 fiscal strategy.
End.