Abuja: The Federal Executive Council (FEC) on Wednesday approved the 2026-2028 Medium-Term Expenditure Framework (MTEF), outlining revenue projections, fiscal assumptions, and spending priorities for the next three years. The Minister of Budget and Economic Planning, Sen. Atiku Bagudu, briefed State House Correspondents after the meeting presided over by President Bola Tinubu. He said the Federal Government expects to generate N34.33 trillion in revenue in 2026.
According to News Agency of Nigeria, Bagudu explained that the total Federal Government of Nigeria revenue from all sources is projected at N34.33 trillion, inclusive of N4.98 trillion returned by government-owned enterprises. This figure is N6.55 trillion lower than the previous estimates. The Federal Government allocation is projected at N9.4 trillion, or 16% lower than the 2025 budget estimate. The expenditure breakdown by major heads shows that statutory transfers will be around N3 trillion.
FEC adopted an oil production target of 2.6 million barrels per day for 2026, with a lower figure of 1.8 million barrels per day used for budgeting. An oil benchmark price of $64 per barrel and an exchange rate of N1,512 to the dollar were also approved. The exchange rate assumption considers the fiscal outlook ahead of the 2027 general elections. The minister noted that all parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies.
Bagudu stated that FEC reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, announced that the Council approved a $100 million African Development Bank facility under the Nigeria Youth Investment Fund to support entrepreneurs aged 18 to 35 engaged in small and medium-scale ventures.
Edun also mentioned the approval of an Islamic Development Bank facility for an integrated agricultural development project in Yobe State. He highlighted that the funding from these multilateral development partners is concessional, affordable, and long-term. President Bola Tinubu acknowledged improvements in GDP growth but noted that the current figures remain below his target.