President Muhammadu Buhari has sent the 2019-2021 medium term expenditure framework (MTEF) and fiscal strategy paper (FSP) to the national assembly for consideration.
In a letter attached to the document, Buhari said the MTEF and FSP were prepared against the background of “a generally uncertain economic environment as well as fiscal challenges in the domestic economy”.
The president said the preparation towards the submission of the 2019 budget to the national assembly “is progressing well”.
“I write to submit the 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the distinguished senate pursuant to provisions of the fiscal responsibility act 2007,” he said.
“The preparation towards the submission of the 2019 budget to the national assembly is progressing well, the MTEF and FSP were prepared against the background of a generally uncertain economic environment as well as fiscal challenges in the domestic economy to ensure the [development of] sustainable levels and is consistent with overall government developmental and inclusive growth.
“I hereby forward the 2019-2021 MTEF/FSP to this senate and trust that it will be considered in order to bring the 2019 budget process to timely closure.”
On October 24, the federal executive council (FEC) approved a budgetary proposal of N8.73 trillion for 2019 fiscal year. The proposal is N400 billion less than the 2018 budget.
Key assumptions being proposed for 2019 budget include oil price benchmark of $60 dollars per barrel, oil production of 2.3 million barrels per day, an exchange rate of N305/$1, and GDP growth rate of 3.01 percent.