FEC approves 2026–2028 MTEF, projects ₦34.33trn revenue

—Proposes 1.8n barrel per day
—$64.85 per barrel
—-Fixes exchange rate at ₦1, 512

By Johnbosco Agbakwuru

ABUJA —THE Federal Executive Council, FEC, on Wednesday approved the 2026–2028 Medium-Term Expenditure Framework MTEF, outlining revenue projections, fiscal assumptions and spending priorities that will guide the government’s economic direction over the next three years.

Briefing State House correspondents at the end of the FEC meeting presided over by President Bola Tinubu, Minister of Budget and Economic Planning, Senator Atiku Bagudu, said the document was jointly presented by the Budget Office of the Federation, led by its Director-General, Tanimu Yakubu, in collaboration with officials of his ministry.

Flanked by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Bagudu said the Council 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 budget planning.

An oil benchmark price of $64.85 per barrel was approved, alongside a projected exchange rate of ₦1,512 to the dollar.

He noted that the exchange rate assumption factored in the fiscal outlook ahead of the 2027 general elections, explaining that all parameters were drawn from extensive macroeconomic analysis by the Budget Office and other relevant agencies.

According to the minister, the federal government expects to generate ₦34.33 trillion in revenue in 2026, reflecting efforts to deepen non-oil earnings, improve tax administration, and broaden the national economic base.

He further stated that the Council also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets spending limits and reinforces fiscal discipline.

Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the MTEF dominated Wednesday’s discussions, although Council also considered two financing proposals.

He disclosed that FEC approved a $100 million African Development Bank facility under the Nigeria Youth Investment Fund to support entrepreneurs aged 18 to 35, especially those operating small and medium-scale businesses.

Council further endorsed an Islamic Development Bank facility for an integrated agricultural development project in Yobe State to bolster food production and rural livelihoods.

Edun said President Tinubu commended the Council’s work but emphasised that the administration must intensify efforts toward economic transformation.

While acknowledging recent improvements in GDP growth, the President was quoted as insisting that current growth levels fall short of his target of 7 percent.

He therefore directed Ministries, Departments and Agencies (MDAs) to focus capital spending on growth-enhancing and job-creating projects, warning that the government expects more measurable outcomes from capital investments in the months ahead.

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