FEC Approves 2026-2028 MTEF, Projects ₦34.33trn Revenue

The Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), setting out key economic assumptions, revenue projections, and fiscal priorities for the next three years.

Briefing State House Correspondents after the meeting which was presided over by President Bola Tinubu, the Minister of Budget and National Planning, Senator Atiku Bagudu, said the framework was jointly presented by the Budget Office of the Federation, led by its Director-General, alongside officials of his ministry.

Bagudu disclosed that the FEC adopted an oil production target of 2.06 million barrels per day for 2026, while a more conservative 1.8 million barrels per day will be used for budgetary purposes.

The Council also approved an oil benchmark price of $64 per barrel, alongside a projected exchange rate of ₦1,512/$1 for the 2026 fiscal year.

He explained that the exchange rate assumption took into account the fact that 2026 precedes a national election year, noting that all parameters were drawn from extensive fiscal and macroeconomic analysis undertaken by the Budget Office and other relevant agencies.

According to him, the federal government’s projected revenue for 2026 stands at ₦34.33 trillion, reflecting ongoing efforts to boost non-oil earnings, strengthen tax administration, and expand the nation’s economic base.

Bagudu added that FEC reviewed comments from ministers and subsequently approved the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which guides spending limits and helps ensure a disciplined budgeting process.

Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the MTEF formed the central focus of Wednesday’s meeting, even though the Council also considered two additional financing items.

He announced that FEC approved a $100 million African Development Bank (AfDB) facility under the Nigeria Youth Investment Fund to support entrepreneurs aged 18 to 35, particularly those operating small and medium-scale enterprises.

In addition, the Council endorsed Islamic Development Bank support for an integrated agricultural development project in Yobe State, aimed at boosting food production and strengthening rural livelihoods.

Edun said President Tinubu expressed appreciation for the Council’s work but stressed that the government must push harder for economic transformation.

While noting the recent improvement in GDP growth, the President insisted it was still below his administration’s target of 7 per cent growth.

He, therefore, directed Ministries, Departments and Agencies (MDAs) to prioritise capital expenditure on growth-enhancing and job-creating projects, warning that the government expects more measurable results from capital investments going forward.