ARTICLE
1 November 2017

Nigeria Unveils Its MTEF And Fiscal Strategy Paper 2018 – 2020

The Federal Government of Nigeria has released the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2018 to 2020 fiscal years.
Nigeria Government, Public Sector

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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