The Federal Government says it is projecting to generate about ₦34.33 trillion in revenue in 2026 as the Executive Council of the Federation (FEC) approved the 2026–2028 Medium-Term Expenditure Framework (MTEF) on Wednesday.
The MTEF is the document that sets government’s fiscal and budgetary objectives to align expenditure with current economic realities on expected income and expenditure.
The Minister of Budget and Economic Planning, Atiku Bagudu, who disclosed this in Abuja at the end of the FEC meeting, said the revenue projection, which includes revenues from all sources, inclusive of N4.98 returned by government-owned enterprises.
He said the figure was lower that the provision in the previous year’s budget by about N6.55 trillion, with the Federal Government allocation lower by N9.4 trillion, or 16% percent than the 2025 budget estimate.
Also, the Minister said the Federal Government expenditure, including statutory transfers of about N3 trillion, would be based on approved benchmarks of oil production target of 2.6 million barrels per day, from an average of 1.8 million barrels per day in the 2025 budget.
With an average oil benchmark price of $64 per barrel and an exchange rate of ₦1,512 to the dollar, the Minister said FEC took into account fiscal outlook ahead of the 2027 general elections.
All the parameters, he pointed out, were were based on macroeconomic analysis by the Budget Office and other relevant agencies.
Besides, Bagudu said FEC also approved the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits, after reviewing the opinions of cabinet members.
Earlier, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Council approved a $100 million African Development Bank (ADB) facility under the Nigeria Youth Investment Fund to support entrepreneurs aged 18 to 35 engaged in small and medium-scale businesses.
Edun said FEC also approved an Islamic Development Bank facility for an ongoing integrated agricultural development project in Yobe State, adding that both multilateral development partners were offering the funding at concessional rates, which are relatively affordable and long-term.
Edun said President Bola Tinubu, who presided over the meeting, acknowledged improvements in gross domestic product (GDP) growth at about 3.98 percent, but maintained that the current figures remained below his target of 7 percent.
He said the president directed Ministries, Departments and Agencies (MDAs) to ensure that they prioritized capital spending on projects that stimulate growth and generate employment for the people. (NAN)
