The Federal Government’s proposed N47.9 trillion budget for 2025 has been described as holding no hope for Nigerians.
Lead Director of Centre for Social Justice (CSJ), Barr. Eze Onyekpere in his reaction to the announcement of the approval of the medium-term expenditure framework (MTEF) 2025-2027 by the Federal Executive Council (FEC) in Abuja today, said though it is too early to comment as the details are not yet made public, the N47.9 is approximately N48 trillion which is equivalent to $28.2 billion at an exchange rate of N1,700/$.
“Nothing to cheer about,” he said. “Check the budget of peers like South Africa and Egypt and you will know we are joking in the name of budgeting. No hope in the renewed hope after putting Nigerians through unprecedented misery.”
Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu who briefed journalists after the FEC meeting presided over by President Bola Tinubu, did not provide details, but simply said the council approved the medium-term expenditure framework (MTEF) for 2025-2027.
He also said the government pegged the crude oil benchmark at $75 per barrel and oil production at 2.06 million barrels per day (bpd)
The budget minister said the exchange rate was pegged at N1,400 per dollar, noting that the government is targeting a gross domestic product (GDP) growth rate of 6.4 percent.
Nigerians had expressed worry over the delay in the submission of the MTEF 2025-2027 to the National Assembly few weeks to the end of the year, a situation they fear may also delay the presentation of the 2025 budget to the National Assembly and affect the quality of debate on the budget.
Fiscal Responsibility Act (FRA) mandates the Minister of Budget and Economic Planning to, before the end of the second quarter of each financial year, present the Medium-Term Expenditure Framework (MTEF) to the Federal Executive Council (FEC) for consideration and endorsement. Thereafter, the MTEF as endorsed by the FEC shall take effect upon approval by a resolution of each House of the National Assembly.
If that provision was observed, the MTEF 2025-2027 should have been endorsed by the Federal Executive Council by the end of June 2024 and should have been presented to the National Assembly in August 2024.
Professor of Accounting and Financial Development, Lead City University, Ibadan, Professor Godwin Oyedokun, said the late approval of the MTEF for 2025-2027 by the Federal Executive Council (FEC) is a cause for concern for several reasons because, accordingto him, it compromised budgetary process.
“The late approval significantly undermines the quality of the budgetary process. It limits the time available for thorough scrutiny, analysis, and public input,” he said.
He said the Lawmakers may be forced to to rush through the budget approval process, increasing the risk of errors and omissions.
However, he said it is important not to sacrifice quality scrutiny on the alter of meeting deadlines.
According to him, “Even if the budget proposal came late, lawmakers should conduct a thorough review of the budget proposal, paying close attention to revenue projections, expenditure allocations, and debt sustainability.
“They should engage with civil society organizations, experts, and the public to gather feedback and ensure that the budget aligns with the needs of the people. And of course they should ensure that the budget adequately funds critical sectors such as education, healthcare, and infrastructure.”