Senate Approves $60 Oil Benchmark, Endorses ₦54.46 Trillion 2026 Budget Framework.
The Nigerian Senate has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), allowing President Bola Tinubu to present the 2026 Appropriation Bill, projected at ₦54.4 trillion, later this week.
In Abuja, the FCT the Nigerian Senate has approved a $60 per barrel oil price benchmark for the 2026 fiscal year and endorsed a ₦54.46 trillion federal budget framework, marking a key step in the country’s medium-term economic planning.
The approval followed the adoption of the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), as presented by the Senate Committee on Finance. The framework sets out the macroeconomic assumptions and fiscal parameters that will guide the preparation of the 2026 Appropriation Bill.
Lawmakers agreed to revise the oil price benchmark downward from earlier executive projections, citing volatility in global crude oil markets and the need for conservative fiscal planning. The Senate also approved projected benchmarks of $65 per barrel for 2027 and $70 per barrel for 2028.
Under the approved framework, total federal expenditure for 2026 is estimated at ₦54.46 trillion, with projected retained revenue of about ₦34.33 trillion. The remaining gap is expected to be financed through a combination of domestic and external borrowing, estimated at ₦17.88 trillion.
Other key assumptions endorsed by the Senate include a crude oil production target of 1.84 million barrels per day for 2026 and an exchange rate projection of approximately ₦1,512 to the US dollar. Inflation is expected to moderate over the medium term, while real GDP growth is projected to improve gradually.
Senators emphasized that the approved parameters are intended to promote fiscal discipline, improve revenue forecasting, and protect the economy from external shocks. The framework will now serve as the basis for the formal presentation and legislative consideration of the 2026 federal budget.
The adoption of the MTEF and FSP is a statutory requirement and represents a critical stage in Nigeria’s annual budget cycle, enabling detailed budget preparations to proceed across government ministries, departments, and agencies.
