Senate Amends MTEF, Sets 2026 Oil Benchmark At $64.85pb

The Senate has approved an amendment to the oil price benchmark contained in the 2026–2028 Medium-Term Expenditure Framework (MTEF), raising it from the earlier approved $60 per barrel to more realistic projections for the three-year period.

The amendment followed a motion sponsored by Senator Sani Musa (Niger East), who invoked Order 1(b) of the Senate Standing Orders, which empowers the Senate to regulate its procedure on matters not expressly provided for in existing rules.

Addressing the chamber, Senator Musa explained that further engagements and findings by relevant committees revealed the need to adjust some of the fiscal parameters on which the MTEF and the proposed budget were predicated.

According to him, retaining the earlier benchmark would make revenue projections, borrowing plans and deficit financing unrealistic and difficult to balance.

“Our findings showed that if we continue with the existing parameters, revenue projections, borrowing and deficit figures will not align. It is therefore better to make the necessary adjustments at this stage so that the budget will be based on sound and realistic data,” he said.

Senator Musa disclosed that consultations were held with the Budget Office and the economic management team, leading to a consensus to retain all parameters submitted by President Bola Tinubu, except for the oil price benchmark.

He clarified that the only amendment sought was to the oil price benchmark, stressing that all other assumptions in the MTEF would remain unchanged.

The approved amendment revised the oil price benchmarks for 2026 from $60 per barrel to $64.85 per barrel; 2027 – $64.3 per barrel and $65.5 per barrel for 2028.

After the amendment was read on the floor, the Deputy Senate President, Barau Jibril, put it to a voice vote. The “ayes” carried the day, and the amendment was unanimously adopted.

Jibril thereafter ruled that the MTEF had been duly amended in line with the new oil price benchmarks and directed that the changes be reflected in the final budget and fiscal policy documents.