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 adopted an exchange rate of N1,512 to the US dollar for the preparation of the 2026 budget. Minister of Budget and Economic Planning Atiku Bagudu announced the decision after a council meeting that also adopted the 2026‑2028 Medium‑Term Expenditure Framework.
According to Minister Bagudu, the federal government projects total revenue of N34.33 trillion for 2026, including N4.98 trillion expected from government‑owned enterprises. This figure represents a reduction of N6.55 trillion compared with earlier estimates. Government allocation is projected at N9.4 trillion, a 16 percent decrease from the 2025 budget estimate, while statutory transfers are expected to be around N3 trillion. The total federal revenue from all sources therefore remains at N34.33 trillion, inclusive of the 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 figure of 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 2026 budget projections are significant steps in Nigeria’s economic planning process. The framework provides a roadmap for the government’s spending priorities and revenue expectations over the next three years, while the 2026 budget will determine the allocation of resources to sectors such as infrastructure, education, and healthcare. Approving the budget framework and the exchange rate for the 2026 budget is a critical step toward ensuring effective implementation of the government’s economic plans. As the budgeting process proceeds, close monitoring of the Medium‑Term Expenditure Framework and the budget projections will be essential to ensure they align with the country’s economic development goals.
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