The Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF) with a ₦34.33 trillion revenue target.
The council approved the MTEF during its meeting on Wednesday, December 3, at the State House, Abuja, presided over by President Bola Tinubu.
The Minister of Budget and Economic Planning, Atiku Bagudu, made this known to journalists.
He hinted that the federal government has projected to generate ₦34.33 trillion in revenue in 2026.
“So, accordingly, 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,” Bagudu said.
He explained that the projected revenue is N6.55 trillion lower than earlier estimates, hinting that federal allocations are expected to drop by about N9.4 trillion.
This will represent a 16 per cent decline compared to the 2025 budget.
“And the federal government expenditure breakdown by major heads shows that the statutory transfers will be around N3 trillion,” Bagudu said.
READ ALSO: Nigeria’s GDP Grows by 3.98% in Q3 Says NBS
Pinnacle Daily reports that MTEF is a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years.
Pegged oil benchmark at 2.06mbpd
According to the minister, the FEC adopted an oil production target of 2.06 million barrels per day (mbpd) for 2026, noting that a lower 1.8 mbpd would be used for budgeting.
He said the council also approved an oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar.
READ ALSO: 7 Subsectors Post Mild Contractions in Economic Activities – CBN
The exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections.
He explained that the exchange rate assumption took into account economic and political developments ahead of the 2027 general elections.
According to the minister, all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies.
Bagudu added that the FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
