Akpabio says n’assembly will receive N54trn 2026 budget this week as senate passes MTEF

The senate has passed the 2026–2028 medium-term expenditureframework (MTEF) and fiscal strategy paper (FSP), paving the way for PresidentBola Tinubu to present the 2026 appropriation bill estimated at N54.4 trillion. Senate President Godswill Akpabio announced the passage onTuesday after lawmakers considered the report of the senate committee onfinance. The report was presented by Sani Musa, senator representingNiger east and chairman of the committee. The Musa-led committee had on Monday, faulted theimplementation of multiple budgets in a single fiscal year, citing the federalgovernment’s experience in 2025. Committee members also asked the Federal Inland RevenueService (FIRS) to raise its projected revenue target for 2026 to N35 trillionfrom N31 trillion. OIL PRICE BENCHMARK, PRODUCTION TARGETS Lawmakers said the approved parameters were aimed atpromoting macroeconomic stability, strengthening fiscal discipline andsupporting the federal government’s economic reforms. The senate approved a downward review of the crude oilbenchmark price for 2026 to $60 per barrel, from $64.85. However, lawmakers endorsed oil price benchmarks of $65 perbarrel for 2027 and $70 per barrel for 2028. The committee said the conservative adjustment for 2026 wasdue to heightened geopolitical tensions in Europe and the Middle East, as wellas continued volatility in the global oil market. Despite the cautious price outlook, the senate retainedcrude oil production projections of 1.84 million barrels per day for 2026, 1.88million barrels per day for 2027 and 1.92 million barrels per day for 2028. Lawmakers expressed optimism that improved security,industry reforms and increased investment would support higher output. EXCHANGE RATE, INFLATION, GDP GROWTH On exchange rate assumptions, the senate approvedprojections of N1,512 to the dollar for 2026, N1,432.15/$ for 2027 andN1,383.18/$ for 2028. The upper chamber said the figures align with the CentralBank of Nigeria’s (CBN) policy direction and efforts to stabilise the nairathrough improved coordination of fiscal and monetary policies. The senate also approved inflation projections of 16.5percent for 2026, 13 percent for 2027 and 9 percent for 2028. Lawmakers said the outlook reflects expected tighteningmeasures by monetary authorities. Real gross domestic product growth projections of 4.68percent for 2026, 5.96 percent for 2027 and 7.9 percent for 2028 were alsoretained. Senators expressed confidence that recent tax and structuralreforms would begin to deliver measurable economic benefits from 2026. REVENUE MEASURES AND TAX REFORMS To boost revenues, the senate urged the strictimplementation of newly enacted tax laws. Lawmakers described the tax reforms as critical to economicgrowth and development. The upper chamber also recommended the adoption of anational scanning policy under the national single window of the NigeriaRevenue Service to curb leakages, improve trade facilitation, boosttransparency and enhance national security. On fiscal aggregates, the senate approved a total federalbudget size of N54.46 trillion for 2026. The figure comprises retained revenue of N34.33 trillion andnew borrowings of N17.88 trillion from domestic and external sources. Debt service was pegged at N15.52 trillion. Pensions, gratuities and retirees’ benefits were estimatedat N1.37 trillion. The framework also includes an overall fiscal deficit ofN20.13 trillion. Lawmakers endorsed capital expenditure of N20.13 trillion,statutory transfers of N3.15 trillion, a sinking fund of N388.54 billion andrecurrent non-debt spending of N15.265 trillion. The committee thanked the senate for its support andexpressed optimism that the approved framework would support sustainableeconomic growth and long-term prosperity. ‘FURTHER REVIEWS COULD BE MADE’Akpabio said the MTEF is a statutory prerequisite for thepresentation of the national budget and does not represent the final positionof the legislature. “The medium-term expenditure framework is only aprerequisite before the presentation of the budget,” he said. “What we are discussing here is not a finality. Ifcircumstances change, it will be brought back to us to rejig, react or act.” Akpabio said the approval of the framework would enable thenational assembly to receive the 2026 budget proposal within the week. He added that the MTEF is not set in stone, noting thatfurther reviews could be made when the budget is formally presented. The senate president expressed hope that the projectionscontained in the framework would be realistic enough to support theimplementation of the renewed hope agenda. Tahir Monguno, senate chief whip and senator representingBorno north, said the MTEF clearly outlined key fiscal parameters, which hedescribed as realistic. Monguno said the projected crude oil production benchmark of1.84 million barrels per day was achievable. He also described the reduction of the oil price benchmarkto $60 per barrel from $64 as prudent, given current market rea

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