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 ₦34.33 trillion in revenue in 2026.
Bagudu said, “So, accordingly, the total Federal Government of Nigeria revenue from all sources is projected at N34.33 trillion, inclusive of N4.98 returned by government-owned enterprises.
“And this figure is lower by N6.55 trillion. So, according to the Federal Government, the federal government allocating it will be N9.4 trillion, or 16% lower than that of the 2025 budget estimate.
“And the federal government expenditure breakdown by major heads shows that the statutory transfers will be around N3 trillion.”
He said FEC adopted an oil production target of 2.6 million barrels per day for 2026, while a lower 1.8 million barrels per day would be used for budgeting.
According to him, an oil benchmark price of $64 per barrel and an exchange rate of ₦1,512 to the dollar were also approved.
He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies.
Bagudu said FEC also 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, said Council approved a $100 million African Development Bank facility under the Nigeria Youth Investment Fund.
He said the fund would support entrepreneurs aged 18 to 35 engaged in small and medium-scale ventures.
Edun said FEC also approved an Islamic Development Bank facility for an integrated agricultural development project in Yobe State.
He added, “There was also approval for an Islamic Development Bank support for Yobe State, and it’s an integrated ADP, an integrated agricultural development project.
“And in both cases, these are multilateral development partners. Their funding is concessional. It is relatively affordable and long-term.”
Edun said President Bola Tinubu acknowledged improvements in GDP growth but maintained that the current figures remain below his target.
He said, “The president directed MDAs to prioritise capital spending on projects that stimulate growth and generate employment.
