Senate Approves MTEF And Launches Investigation Into NNPCL’s ₦8.48 Trillion Subsidy Funds

Senate Approves MTEF And Launches Investigation Into NNPCL’s ₦8.48 Trillion Subsidy FundsAs President Bola Tinubu prepares to present the 2025 Appropriation Bill to the National Assembly, the Senate has approved the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper. The approval came after a report was presented by the Senate’s joint Committees on Finance, National Planning, and Economic Affairs, chaired by Senator Sani Musa (APC, Niger East).....KINDLY READ THE FULL STORY HERE▶

In addition to approving the MTEF, the Senate has initiated a probe into allegations made by the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission regarding the Nigerian National Petroleum Company Limited (NNPCL). The Commission alleges that NNPCL withheld ₦8.48 trillion in subsidy claims for petrol. The investigation will also examine a report from the Nigeria Extractive Industries Transparency Initiative (NEITI), which accuses NNPCL of failing to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.

The Senate has instructed its committees on Finance, Petroleum (Upstream and Downstream), and Gas to investigate unremitted revenues from the sale of Premium Motor Spirit (petrol) by NNPCL between 2020 and 2023. The committees will also review agreements between NNPCL, the Nigerian Liquefied Natural Gas (NLNG), and the Immigration Services to ensure proper remittances to the Federation Account.

Key Projections in the MTEF

•Exchange Rate: ₦1,400/$ for 2025, 2026, and 2027

•Oil Benchmark Prices: $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027

•Domestic Crude Oil Production: Projected increase from 1.78 million barrels per day (bpd) in 2024 to 2.06, 2.10, and 2.35 million bpd in 2025, 2026, and 2027

•GDP Growth Rates: 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027

•Inflation Rates: 15.75%, 14.21%, and 10.04% for 2025, 2026, and 2027

The proposed 2025 federal budget includes ₦47.9 trillion in spending, with ₦34.82 trillion in retained revenue and ₦9.22 trillion in new borrowings (domestic and foreign). Capital expenditure is projected at ₦16.48 trillion, statutory transfers at ₦4.26 trillion, and sinking funds at ₦430.27 billion.

Calls for Action

Senator Solomon Adeola (APC, Ogun West), chairman of the Appropriations Committee, highlighted the importance of the Federal Government’s Compressed Natural Gas (CNG) initiative. He argued that the initiative could reduce foreign exchange demand and fuel costs, saying, “With the functioning of our refineries, the demand for Forex will drop. The CNG initiative will allow Nigerians to travel longer distances at much lower costs.”

Senator Jimoh Ibrahim (APC, Ondo South) called for a transactional tax, criticizing the country’s wealthy elite for paying minimal taxes. He emphasized, “The rich need to pay more. It’s not just about generating employment; they should pay more for their luxury assets.”

Former Senate Leader Yahaya Abdullahi (PDP, Kebbi North) stressed the need to support manufacturing industries to meet MTEF projections. Meanwhile, Senator Jimoh Ibrahim advocated for increased taxation on luxury assets owned by the wealthy.

Refinery Operations Under Scrutiny

The Senate Committee on Public Accounts, led by Senator Aliyu Wadada (SDP, Nasarawa West), raised concerns over transparency regarding the operations of the Port Harcourt refinery. Senator Wadada questioned the refinery’s output since it resumed operations, urging NNPCL to provide clear data on product distribution to avoid premature commendations.

Wadada stated, “We have written to NNPC and the Federal Inland Revenue Service. However, we received documents that were handwritten and tipexed, which is unacceptable.” He further questioned the refinery’s output, asking, “How many trucks have been able to lift products from the Port Harcourt refinery?”

The Senate President, Senator Godswill Akpabio, commended the joint committees for their thorough analysis of the MTEF and urged the government to ensure accountability and effective implementation of its initiatives.

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