The House of Representatives initiated a comprehensive evaluation of President Tinubu’s 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) during Wedneday’s legislative proceedings. Chairman of the House Committee on Finance, James Faleke, steered an interactive session with ministers and permanent secretaries from diverse ministries, emphasizing the crucial role of this examination.
Faleke stressed the significance of shaping a realistic MTEF/FSP before the unveiling of the 2024 annual budget, asserting its instrumental role in molding the financial trajectory of the nation in the coming years. He assured a commitment to devising indigenous solutions to address the financial challenges currently plaguing the country, expressing concern over issues like the $11 billion P and ID contract scandal and the substantial monthly payment of $30 million by Nigeria Bulk Electricity Trading Plc (NBET) to Azura Power.
Among the financial issues under scrutiny are the substantial revenue loss from waivers and exemptions amounting to over N2.7 trillion, as projected in the 2024 budget estimates. Faleke underlined the pivotal role of the MTEF as the foundation of the annual budget, serving as the backbone for the implementation of the Federal Government’s plans and policies.
“The House Committee on Finance aims to ensure that MDAs negotiate favorable terms for the country in their agreements, particularly in light of recent costly agreements. Additionally, we will investigate factors contributing to revenue shortfalls, such as oil theft and NNPC agreements affecting revenue deductions at source,” affirmed Faleke.
Drawing attention to the mammoth significance of government revenue, Faleke underscored the committee’s commitment to surpassing the revenue estimates submitted by the Budget Office through the operations of government-owned agencies. However, he expressed apprehension regarding the country’s debt scenario, citing that deficit budgets have driven substantial domestic and foreign borrowing, with debt servicing payments accounting for over 95 percent of last year’s revenues.
In response, Faleke outlined the committee’s persistent efforts in the creative Revenue Monitoring Exercise, aiming to elevate the collective revenue profile of the country. “With the global economy facing challenges, including rising interest rates in developed countries, the committee recognizes the need to increase revenues,” he stated, emphasizing the goal of attracting investments and adeptly navigating Nigeria’s economic challenges.
Faleke concluded by highlighting the committee’s legislative scrutiny and proactive approach, reaffirming their dedication to addressing crucial financial matters and securing a robust economic future for the nation.
