The Federal Executive Council on Wednesday approved the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2026 to 2028.
The Minister of Budget and Economic Planning, Atiku Bagudu, briefed journalists after the meeting in Abuja. He said the document will be sent to the National Assembly on or before December 8.
Bagudu said the framework sets an oil price benchmark of $64.85 per barrel and adopts two oil production figures: a 2.06 million barrels per day target and a 1.8 million barrels per day benchmark for budgeting.
He explained that the benchmark price is lower than Nigeria’s average crude oil selling price but is being used as a precaution.
He also said the 2026 projections include a 4.68 per cent growth rate and a budget exchange rate of N1,512 per dollar.
According to him, gross Federation revenue for 2026 is expected to be N50.74 trillion, with the Federal Government receiving N22.60 trillion, states N16.30 trillion, and local governments N11.85 trillion.
Total Federal Government revenue from all sources is projected at N34.33 trillion, including N4.98 trillion from government-owned enterprises.
Bagudu said this is 16 per cent lower than the 2025 estimate.
He listed major expenditure items as about N3 trillion for statutory transfers, N15.91 trillion for debt servicing, and N15.27 trillion for personnel and pensions.
The projected deficit is N20.10 trillion, about 3.61 per cent of GDP, bringing the expected spending plan to about N54.43 trillion.
Bagudu said the framework includes reviews of the 2025 budget implementation and inputs from government agencies and other stakeholders. He also said President Bola Tinubu has received approval from the National Economic Council for stronger coordination of fiscal and monetary policies and more spending on security, especially on rehabilitating training institutions.
He added that FEC approved measures to curb revenue losses in the oil, gas and solid minerals sectors and to support key infrastructure projects.
The MTEF/FSP provides the basis for preparing the 2026 national budget.
