The Federal Government on Thursday approved the Medium-Term Expenditure Framework for 2025 – 2027 and Fiscal Strategy Paper.

According to the MTEF, the proposed 2025 budget size is N47.9tn, with new borrowings of N9.22tn, the Minister of the Budget and Economic Planning, Abubakar Bagudu, told State House Correspondents after this week’s Federal Executive Council meeting at Aso Rock Villa, Abuja.

Bagudu announced, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, which was presented by the Director-General of the Budget Office [Mr Tanimu Yakubu] on the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025 – 2027.”

The disclosure comes after weeks of delay as President Bola Tinubu prepares to present the 2025 Appropriation Bill to the National Assembly, his second since assuming office in May 2023.

The MTEF, a critical tool the FG uses to outline its fiscal strategy over three years, establishes macroeconomic assumptions and targets that guide national budgeting. It also includes projections of key economic variables such as oil prices, exchange rates, inflation, and growth rates.

For the 2025-2027 period, the MTEF sets out parameters, including an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, an exchange rate of N1,400 to the US dollar, and a GDP growth rate of 4.6 percent.

The FG’s projected aggregate expenditure for 2025 is N47.9tn, with planned borrowing of N13.8tn, equating to 3.87 percent of GDP.

The minister explained, “For the 2025-2027 period, the MTEF sets out parameters including an oil price benchmark of $75 per barrel for 2025, oil production of 2.06 million barrels a day, as well as an exchange rate of N1400 to the dollar and GDP growth of 4.6 percent.”

“It is expected that for 2025, the Federal Government’s budget estimate, the aggregate expenditure is estimated at N47tn, and this includes a borrowing of N13.8tn, which is 3.87 percent of the estimated GDP.

“The budget size that was approved for presentation to the National Assembly in the MTEF is N47.9tn with new borrowings of N9.22tn to finance the budget deficit in 2025 as well as noting that we need to sustain the commendable market deregulation of petroleum prices and exchange rate, and to compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly, and even to consider the need to amend the relevant sections of the Petroleum Industry Act 2021 to address the significant risk to Federation.”

“The figures were only for 2025, even though there are projections for 2026 and 2027 in the document, which have different figures for the oil price benchmark for the two years,” he added.

Bagudu said Thursday’s memorandum sought the council’s endorsement of the MTEF for submission to the National Assembly, a requirement under the Fiscal Responsibility Act 2007.

The MTEF begins with a macroeconomic overview. It notes that despite global economic challenges, the Nigerian economy is on a positive trajectory, showing two consecutive quarters of growth, with a 3.19 percent increase in real terms in the second quarter of 2024, the budget minister explained.

However, he acknowledged the need to combat inflation, strengthen economic resilience, support vulnerable populations, bolster high-employment sectors, improve the business climate, and effectively implement youth and social investment programs.

He revealed that the framework, alongside the FSP, also includes a review of the 2024 budget implementation, highlighting progress in revenue collection and expenditure management, though some targets have fallen short. The report also shows that non-oil revenue streams outperform expectations, Bagudu said.

On the 2024 budget performance, he said, “Actual spending as of August 2024 ending was N16.98tn as against the prorated spending target of N23.37tn at the end.

“Of this amount, N7.41tn was for debt service, and N3.7tn for personnel costs including pension. Further, N3.65tn has been released for capital projects. Most of the delays for capital project release have been earlier legacy issues, in the sense that the new procedure for upload requires a lot of capacity building and delayed uploads.”

N28.75tn was earmarked for the 2024 budget. However, it grew to N35.6tn after amendments by the National Assembly added N6.2tn to the pile.

Responding to queries from journalists, the budget minister said the MTEF would reach the National Assembly on Monday, November 18.

“We are submitting it, I believe, tomorrow [Friday] or, at the latest, on Monday. The office of Mr President will forward the Medium-Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly,” he stated.

The minister also argued that despite the late approval for the MTEF, the FG will maintain the January-December budget implementation cycle.

He affirmed, “We are confident because we have built a respectable relationship with the National Assembly. We have narrowed the areas of misunderstanding. And because of that mutual respect, Mr President is very transparent with the National Assembly leadership. And the National Assembly appreciates that openness.

“He [President] has instructed all his teams to ensure we cooperate with the National Assembly. For instance, the team led by the Coordinating Minister of the Economy has been mandated not only to wait but also to engage the National Assembly and answer all questions at the committee hearings.

“So, I’m confident because of this combination of factors. With this cooperation, I believe we’ll see an expeditious consideration, and immediately we are aware of the approval, we will finalize the budget because the MTEF precedes the budget preparation.”

• Shareholders to receive one new share for five existing shares

• Further strengthens regulatory capital and positions Group for growth in lending, digital banking and unique diversified global banking Strategy

Africa’s Global Bank, United Bank for Africa (UBA) Plc, will raise N239.4 billion through a Rights Issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share.

The Rights Issue, which opened on Friday, November 15, 2024, gives existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.

In his letter to the shareholders informing them, the Group Chairman of United Bank for Africa, Tony Elumelu, noted that following the resolution of the Group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400 billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.

“UBA’s Rights Issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders. The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu said.

Explaining the use of proceeds, the Group Chairman noted that, beyond regulatory compliance, the funds will expand the Group’s lending capacity, investment in digital infrastructure, support sustainable business practices and expanding the Group’s African operations.

Elumelu also highlighted how UBA is driving economic growth across Africa. “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development”.

The issuance is in compliance with the revised minimum capital requirements for Nigerian commercial banks announced by the apex banking regulator in Nigeria – the Central Bank of Nigeria (CBN) earlier this year.

UBA has consistently demonstrated growth and resilience, evidenced by the Group’s strong financial performance and recent recognition within the industry. UBA’s progressive dividend policy, which has seen an increase by 14.8% annualised dividend yield has demonstrated the Group’s ability to reward shareholders consistently. In 2023/2024, UBA won “Bank of the Year” Awards in eight of its subsidiaries – Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.

Application for the provisional allotment of the Rights to the new ordinary Shares will be made exclusively through the NGX e-offer portal during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter. Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With a unique international presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa and globally, through retail, commercial, corporate and institutional banking, innovative cross-border payments and remittances, trade finance and related banking services.

Nigerian entrepreneur and brand strategist Abisoye Fagade is setting out to revitalize the National Hospitality and Tourism Institute, leveraging his extensive experience and exposure to global best practices. With a rich background in media, advertising, and business development, Fagade believes he can turn the institute into a world-class training ground that prepares Nigerian students to excel in the hospitality and tourism industries both domestically and abroad.

As the founder of Sodium Brand Solutions and a leading figure in Nigeria’s media space, Fagade’s understanding of brand positioning and customer-centric service is well-suited to transform the institute’s operations and curriculum. He aims to instill a new culture of professionalism, global competitiveness, and innovation within the institute, ensuring it becomes a vital force in shaping the nation’s hospitality standards.

• Modernizing Curriculum for Global Competitiveness

Fagade’s first step is to overhaul the institute’s curriculum, introducing practical, industry-relevant courses that reflect current global trends in hospitality and tourism. He plans to bring in seasoned industry experts and form international partnerships to expose students to the skills needed to thrive in a globalized market. This includes collaborations with renowned hotels, tourism agencies, and hospitality schools worldwide, offering students opportunities for internships, exchange programs, and real-world learning experiences.

“Hospitality is about people and experiences, and in today’s world, it is essential to train students to understand both local and international guests,” Fagade said in a recent statement. “We need a curriculum that combines practical skills, cultural sensitivity, and an understanding of global standards.”

• Embracing Digital Tools and Sustainable Practices

As digital transformation sweeps across industries, Fagade envisions the National Hospitality and Tourism Institute embracing technology to improve training and services. By integrating digital tools, software applications, and e-learning platforms, he intends to make training more accessible and interactive, preparing students to use the tech solutions that are becoming essential in hospitality management.

Additionally, Fagade places a strong emphasis on sustainability, which has become a focal point in global tourism. His strategy includes training students on eco-friendly practices, resource management, and sustainable tourism models that protect Nigeria’s cultural and natural heritage. “Our institute should set an example, showing that Nigeria can offer world-class tourism that respects our environment and our traditions,” Fagade noted.

• Expanding Opportunities Through Global Collaborations

To ensure the institute reaches international standards, Fagade plans to develop exchange programs and collaborative initiatives with leading hospitality institutions in Europe, Asia, and the Americas. These programs will enable Nigerian students to gain exposure abroad and learn from established markets, bringing back valuable insights and experiences that can be adapted to the local industry. This global perspective, he believes, will create a pool of Nigerian hospitality professionals who are both globally informed and deeply rooted in their own cultural identity.

• Long-Term Vision: Establishing a National Legacy

Abisoye Fagade’s mission is not merely about modernizing an institution but about fostering national pride and economic growth. He believes that Nigeria’s tourism sector holds significant potential to diversify the economy, and a well-trained workforce is key to making that vision a reality. “Our people are the heart of Nigeria’s hospitality,” he said. “We are known for our warmth and welcoming spirit. By enhancing our standards, we can ensure our tourism industry is a leader in Africa and an inspiration worldwide.”

As he undertakes this ambitious journey, Fagade’s leadership and forward-thinking approach are expected to transform the National Hospitality and Tourism Institute into a beacon of excellence, establishing a legacy that will elevate Nigeria’s status on the world tourism map.

Seun Oloketuyi

Founder /Chairman Advisory board

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Writes from Lagos