The House of Representatives has passed the Medium term Expenditure Framework, MTEF and Fiscal Strategy paper FSP, submitted to the National Assembly last week.
The document which received a unanimous approval by the lawmakers, put the oil bench mark at $57 per barrel, two dollars higher than the executive proposal, oil production quota of 2.18million barrel per day as against the 2.1m submitted to the lawmakers.
This was in view of concerted effort by NNPC and security agencies to combat the menaces of oil theft and vandalism of oil facilities.Exchange rate was maintained at N305 to a dollar.
The lawmakers recommended an immediate amendment of Act of the National Assembly on Production sharing Contracts with independent Oil Companies as well as proper investigation be carried out on NNPC so as to ascertain the actual cost associated with the Joint Venture agreements.
They recommended more work on the part of the Minister of Finance and all economic advisers, on improving the economic growth by increasing the GDP and reducing the inflation rate to single digit.
While adopting N15 trillion as the amount to be borrowed to finance the budget as a result of reduction of N200 billion which was sourced from the increase of revenue target of the Nigeria Custom Service, the lawmakers however stressed that borrowing must be project-tied.
They said:“In borrowing more government must remain focused and ensure that it used to fund critical projects that will increase productivity and contribute to finance such debt.”
Presenting and passing of the MTEF/FSP indicates the willingness of the lawmakers to consider and passed the 2020 budget on time so that the plan to return the budget cycle to January-December will be achieved.