•Oil Price Pegged at $60, Production at 1.84mbpd for 2026
••Exchange Rate Benchmark Fixed at ₦1,512/$
-2026 budget to be presented on or before December 31 – Akpabio
The Senate on Thursday approved the 2026-2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), paving the way for a proposed ₦54.46 trillion budget for the 2026 fiscal year.
The approval, which followed the consideration and adoption of the report from the Senate Committee on Finance, chaired by Senator Sani Musa, sets the macroeconomic foundations for the next three annual budgets.
In his concluding remarks, the President of the Senate, Senator Godswill Akpabio, disclosed that President Bola Tinubu is expected to present the 2026 Appropriation Bill to the National Assembly on or before December 31 of this year.
Key benchmarks approved for the 2026 budget include a crude oil production benchmark of 1.84 million barrels per day (mbpd), an oil price benchmark of $60 per barrel, and an exchange rate of ₦1,512 to the US dollar. The framework also projects a Gross Domestic Product (GDP) growth rate of 4.68% for 2026.
The Red Chamber revised the executive’s proposed oil price downwards for 2026, citing global geopolitical tensions in Europe and the Middle East and the sensitivity of crude prices. The approved price is $60 for 2026, rising to $65 in 2027 and $70 in 2028.
On revenue, the framework projects Federal Government retained revenue at ₦34.33 trillion, creating a significant deficit. To finance this, new borrowings of ₦17.88 trillion—covering both domestic and foreign loans—were approved. Debt servicing is projected to gulp ₦15.52 trillion.
Other major fiscal provisions include ₦1.376 trillion for pensions and gratuities, a fiscal deficit of ₦20.13 trillion, and statutory transfers of ₦3.152 trillion.
Presenting the report, Senator Musa expressed hope that the approved framework would “serve as a catalyst for sustainable economic prosperity in this country.”
Senator Akpabio emphasised that the approved MTEF-FSP remains a working document subject to review if circumstances change, but its passage was critical to allow the executive arm commence the formal preparation of the 2026 budget.
