The Nigerian government expects the country to produce 1.88 million barrels per day of crude oil in 2022 and will use a benchmark oil price of $57 per barrel for its budget planning, according to a document approved by the Senate on Wednesday.
The Medium-Term Expenditure Framework (MTEF), a crucial part of the annual budget preparation cycle, also showed projected GDP growth of 4.2% and inflation of 13% in 2022.
The red chamber retained the exchange rate of N410.15 per dollar proposed by the Executive and also approved the projected Gross Domestic Product growth rate of 4.20 per cent.
The Senate retained the projected Inflation rate of 13 per cent Fiscal deficit estimate of N5.62 trillion.
Buhari’s projected new borrowings of N4.89 trillion, including foreign and domestic borrowing, were also retained and approved.
Also, the $3.5 bn International Monetary Fund loan at the rate of 0.01 per cent to 0.02 per cent proposed by the President was also approved to shore up the internal borrowing and to reduce external borrowing because of the exchange rate risks.
The Senate retained the Federal Government’s 2022 revenue projection of N8.36 trillion; and expenditure of N13.98 trillion.
Others parameters contained in the MTEF/FSP submitted by the President and retained by the red chamber are Statutory transfers (N613.4 billion; Debt Service (N3.12 trillion); Sinking Fund (N292); Pension, Gratuities & Retirees Benefits of N567 billion; and Aggregate Expenditure of N13.98 trillion.
The aggregate expenditure is made up of total recurrent (non-debt) of N6.21 trillion; and Personnel Costs (MDAs) of N3.47 trillion.
Others are, Capital expenditure (exclusive of Transfers) N3.26 trillion; Special Intervention (Recurrent) amounting to N350 billion; and Special intervention (Capital) of N10billion.