Budget plans for 2026–2028 came into focus on Wednesday at Abuja’s State House, where President Bola Tinubu and the Federal Executive Council (FEC) approved the Medium-Term Expenditure Framework (MTEF).
Budget Plans Take Centre Stage
The framework outlines Nigeria’s expected revenue, spending priorities, and key economic assumptions for the next three years.
It also provides a roadmap for fiscal discipline and investment planning across government sectors.
Revenue And Spending Outlook
Minister of Budget and Economic Planning, Senator Atiku Bagudu, stated that total revenue for 2026 will reach ₦34.33 trillion, including nearly ₦5 trillion from government-owned enterprises.
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Moreover, he explained that federal allocations will drop by 16%, while statutory transfers are expected to total around ₦3 trillion, reflecting tighter fiscal space.
In addition, FEC set oil production at 2.6 million barrels per day, although the budget will use a conservative 1.8 million barrels.
The council also approved an oil price benchmark of $64 per barrel and an exchange rate of ₦1,512 per dollar.
Bagudu noted that these assumptions reflect anticipated economic and political developments ahead of the 2027 elections.
Fiscal Limits And Economic Outlook
Furthermore, the cabinet reviewed all comments before approving the Medium-Term Fiscal Expenditure Ceiling, which defines expenditure limits.
Earlier, the Senate endorsed the 2025–2027 MTEF and Fiscal Strategy Paper, including a $21.5 billion external borrowing plan.
Finally, President Tinubu projected inflation falling from 34.6% to 15% and the naira strengthening, signalling cautious optimism for the economy.
