December 03, (THEWILL) — The Federal Executive Council (FEC) on Wednesday approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), outlining the Federal Government’s fiscal direction, revenue targets and spending priorities for the next three years.
Briefing State House correspondents after the meeting presided over by President Bola Tinubu, Minister of Budget and Economic Planning, Atiku Bagudu, said the government projects ₦34.33 trillion in total revenue for 2026, including ₦4.98 trillion expected from government-owned enterprises.
He noted that the new projection is ₦6.55 trillion lower than the previous estimate, while the Federal Government’s share — put at ₦9.4 trillion — represents a 16% drop compared to the 2025 budget benchmark.
Bagudu added that statutory transfers are expected to cost about ₦3 trillion. He explained that all key fiscal parameters contained in the MTEF were derived from macroeconomic analyses conducted by the Budget Office and other relevant agencies.
According to him, the Council adopted a crude oil production target of 2.6 million barrels per day (mbpd) for 2026, but a lower figure of 1.8 mbpd will be used for budgeting to reflect current realities.
The Council also approved a benchmark oil price of $64 per barrel and an exchange rate of ₦1,512 to the US dollar.
Bagudu stated that the exchange rate assumption factored in the anticipated fiscal pressures ahead of the 2027 general elections.
He added that the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets spending limits across government, also received FEC approval following cabinet-wide consultations.
Earlier, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that FEC had approved a $100 million African Development Bank (AfDB) facility under the Nigeria Youth Investment Fund (NYIF).
The fund targets entrepreneurs aged 18 to 35 engaged in small and medium-scale enterprises.
Edun also disclosed that the Council approved an Islamic Development Bank (IsDB) facility for an integrated agricultural development project in Yobe State.
Both facilities, he said, are concessional with long-term repayment periods.
He added that President Tinubu acknowledged improvements in GDP growth but maintained that the pace remains below expectations, directing Ministries, Departments and Agencies (MDAs) to prioritise capital projects that boost productivity and create jobs.
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