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Nigerian govt. approves 2018-2020 MTEF, targets 7% growth rate by 2020

Nigerian govt. approves 2018-2020 MTEF, targets 7% growth rate by 2020

The Federal Executive Council on Wednesday approved the 2018-2020 Medium Term Expenditure Framework Fiscal Strategy Paper which targets to achieve seven percent growth rate by 2020.

The Minister of Budget and National Planning, Udo Udoma, disclosed this to State House correspondents at the end of a weekly meeting of the council presided over by the Acting President, Yemi Osinbajo, at the Presidential Villa, Abuja.

Udoma said in order to achieve the seven per cent growth rate by 2020, the Federal Government would target 3.5 per cent growth rate in 2018; 4.5 percent in 2019; and seven percent in 2020.

The minister said, “The council approved the 2018-2020 Medium Term Expenditure Framework Fiscal Strategy Paper. As you know, we have been having extensive consultations in the last few weeks with the state governors, members of the public and the leadership of the National Assembly about the expenditure framework.

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“The highlight of it is that we are committed to achieving seven percent growth rate by 2020 in accordance with the Economic Recovery and Growth plan. Indeed the MTEFF FSPis on the economic recovery growth plan.

“In terms of the trajectory of getting to the seven percent, we have approved a slightly different trajectory in the sense our target will be 3.5 per cent growth rate in 2018, 2019 will 4.5 percent growth rate and in 2020, it will be seven percent growth rate.

“In terms of crude oil projection for next year, it is 2.3 million barrels per day and we expect it to be broken down to 1.8 million barrels per day with regular crude and 500,000 barrels per day in terms of condensed crude. The price we have projected is $45 per barrel.

“We are also committed to raising additional revenue so as to reduce the debt service to revenue ratio. That is part of the policy of this government to make sure that our borrowing is reduced and to make sure that we keep a reasonable debt service ratio which will of course help to reduce the interest rate.”

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