Nigeria lawmakers pass 2024-2026 budget framework with naira at 700 to dollar next year

ABUJA (Reuters) – Nigeria’s lower house of parliament passed the medium-term expenditure framework for 2024-2026 on Tuesday, a set of assumptions that will be used to prepare the country’s budget over the next three years.

The document, which was agreed by President Bola Tinubu’s cabinet before going to the House of Representatives for approval, expects the naira currency to be around 700 naira per dollar next year before firming slightly in 2025 and 2026.

The naira last week briefly slumped to a record low of 1,105 against the dollar on the official market, bringing the official exchange rate within touching distance of the parallel market rate. The currency later recovered to around 800 naira.

The government is projecting a slight rise in crude production and gross domestic output growth, with a moderation in double-digit inflation.

The fiscal framework must also be passed by the upper chamber of parliament.

Tinubu is also due to send the country’s 2024 spending plan of 26 trillion naira ($34 billion) to parliament for approval.

Below are some of the assumptions in the medium-term expenditure framework:

2024 2025 2026

Exchange rate 700 naira 665.61 naira 669.79 naira

(per $)

Oil production 1.78 mln 1.80 mln 1.81 mln

(per barrel)

Oil Price ($) $73.96 $73.76 $69.90

GDP growth 3.76% 4.22% 4.78%

Inflation rate 21.40% 20.30% 18.60%

(Reporting by Camillus Eboh in Abuja; Writing by Chijioke Ohuocha; Editing by Alexander Winning and Matthew Lewis)