The Federal Government of Nigeria (FGN) has released the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2018 to 2020 fiscal years. The MTEF/FSP, issued pursuant to the provisions of the Fiscal Responsibility Act, documents FGN’s economic agenda, fiscal policies and strategies, as well as projected revenue and expenditures over the three-year period. These set the tone for FGN’s 2018 to 2020 budget which are expected to be prepared in line with the agenda, policies and strategies described in the MTEF/FSP.
The document highlights FGN’s plans for achieving its defined objectives which include a 7% gross domestic product (GDP) growth by 2020, in alignment with goals set out in the Economic Recovery and Growth Plan (ERGP). Based on the MTEF/FSP, some of the fiscal strategies FGN intends to pursue to achieve the objectives include:
- broadening revenue receipts by identifying and plugging revenue leakages
- improving efficiency and quality of capital spending with greater emphasis on critical infrastructure
- rationalising recurrent expenditure; and
- gradually consolidating fiscal measures to maintain the fiscal deficit at below 3% of GDP
Overall, the MTEF/FSP demonstrates FGN’s efforts towards multi-year budgeting with a view to appropriately balancing the allocation of public resources among competing needs on a rolling basis over the medium term.
Please expect our newsletter which will cover the details of the MTEF/ FSP and highlight the possible implications on Nigeria’s economy. A copy of the MTEF/ FSP can be accessed HERE.