FEC Approves 2026–2028 Fiscal Plan

The Federal Executive Council (FEC) on Wednesday approved the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), setting the tone for next year’s budget planning and key economic priorities.

The approval followed a detailed presentation by the Ministry of Budget and Economic Planning during the weekly council meeting chaired by President Bola Tinubu at the State House.

The session also witnessed the swearing-in of five cabinet members three representing geopolitical zones and two representing states as well as the inauguration of a new chairman and two commissioners of the National Population Commission.

Council members observed a minute of silence in honour of the late Ambassador Joy Ogwu, former Minister of State for Foreign Affairs, who passed away on October 13, 2025.

Briefing State House correspondents, the Minister of Finance said President Tinubu emphasized the need for greater efficiency in public spending and a sharper focus on projects that stimulate national productivity and job creation.

The president also reaffirmed his 7 percent annual GDP growth target, noting that recent economic indicators show progress but further improvements are required.

The Minister of Finance highlighted two additional approvals: a $100 million African Development Bank loan under the Youth Investment Fund aimed at supporting entrepreneurs aged 18 to 35 with equity, loans, and grants; and Islamic Development Bank financing for an Integrated Agricultural Development Project in Yobe State.

He stressed that both facilities offer long-term, concessional terms to boost agriculture and small-business growth.

Providing details of the newly approved MTEF/FSP, the Minister of Budget and Economic Planning said the fiscal framework was developed with input from government agencies, private sector stakeholders, civil society and development partners.

Key assumptions for 2026 include a conservative crude oil benchmark price of $64.85 per barrel, an exchange rate of ₦1,512 to $1, and a 4.68 percent GDP growth projection.

While oil production is targeted at 2.06 million barrels per day, budget planning will be based on a benchmark output of 1.8 million barrels per day to minimize revenue shortfalls.

Federation revenue is projected at ₦50.74 trillion, with the federal government expected to receive ₦22.6 trillion, states ₦16.3 trillion, and local governments ₦11.85 trillion.

The deficit is estimated at ₦20.1 trillion, representing 3.61 percent of GDP.

The minister added that council deliberations reinforced the president’s call for tighter coordination of fiscal and monetary policies, improved security spending, stronger revenue protection in extractive sectors, and continued infrastructure investment to sustain Nigeria’s economic reforms.