FG approves N54tn medium-term expenditure framework for 2026–2028
By Kunle Sanni –
The Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper, projecting a federal spending envelope of about N54.43tn for the 2026 fiscal year.
The framework, which sets key budgetary assumptions, adopts an oil benchmark price of $64.85 per barrel and a budget exchange rate of N1,512 to the dollar.
Addressing State House correspondents after Wednesday’s FEC meeting at the Presidential Villa, the Minister of Budget and Economic Planning, Atiku Bagudu, said the document will be transmitted to the National Assembly on or before Monday, December 8. He revealed that the MTEF was prepared with input from ministries, the private sector, civil society groups, and development partners.
Bagudu disclosed that two oil production figures were adopted: an ambitious target of 2.06 million barrels per day for the industry to pursue, and a more cautious benchmark output of 1.8 million barrels per day for budgeting purposes.
He added that the oil price benchmark was deliberately set below Nigeria’s typical crude oil receipts to safeguard revenue projections, noting that Bonny Light crude sells at a premium on the international market.
The minister further explained that the 2026 macroeconomic outlook includes a growth rate of 4.68 per cent and reflects expected election-year pressures on the exchange rate.
Gross Federation revenue for 2026 is estimated at N50.74tn, with the Federal Government projected to receive N22.60tn, states N16.30tn, and local governments N11.85tn. Total federal revenue from all sources is projected at N34.33tn, including N4.98tn from government-owned enterprises, representing a 16 per cent decline from the 2025 estimate.
