The Federal Executive Council has approved a crucial budget framework for Nigeria, setting the stage for the country’s economic planning for 2026. In a significant development, the council has adopted an exchange rate of N1,512 to the US dollar for the preparation of the 2026 budget. This decision was announced by Minister of Budget and Economic Planning, Atiku Bagudu, following a council meeting where the 2026-2028 Medium-Term Expenditure Framework was also adopted.
According to Minister Bagudu, the Federal Government is projecting a total revenue of N34.33 trillion for 2026, which includes N4.98 trillion expected from government-owned enterprises. This figure represents a reduction of N6.55 trillion compared to earlier estimates. The government’s allocation is projected at N9.4 trillion, a decrease of 16 percent from the 2025 budget estimate, while statutory transfers are expected to be around N3 trillion. The total Federal Government revenue from all sources is projected at N34.33 trillion, inclusive of N4.98 trillion returned by government-owned enterprises.
In the oil sector, the council approved a production target of 2.6 million barrels per day for 2026, but a more conservative 1.8 million barrels per day will be used as the basis for budgeting, with an oil benchmark price of $64 per barrel. This decision reflects the government’s cautious approach to revenue projections, given the volatility of the global oil market.
The adoption of the Medium-Term Expenditure Framework and the budget projections for 2026 are significant steps in Nigeria’s economic planning process. The framework provides a roadmap for the government’s spending priorities and revenue projections over the next three years. The budget projections for 2026, in particular, will have a significant impact on the country’s economic development, as they will determine the allocation of resources to various sectors, including infrastructure, education, and healthcare.
The approval of the budget framework and the exchange rate for the 2026 budget is a critical step towards ensuring the effective implementation of the government’s economic plans. As the government moves forward with the budgeting process, it will be essential to closely monitor the implementation of the Medium-Term Expenditure Framework and the budget projections to ensure that they align with the country’s economic development goals.