…FG projects N54.5 trillion by 2026
The Federal Government is proposing a budget plan of approximately N54.5 trillion for 2026 amid the ongoing implementation of the 2024 overlay budget and 2025 budgets.
The disclosure occurred when the Presidency sent the Medium-Term Expenditure Framework and the Fiscal Strategy Document (FSP) for 2026-2028 to the Senate on Thursday.
The MTEF/FSP had already been approved by the Federal Executive Council (FEC) at its meeting on December 3.
In 2025, the country budgeted N54.99 trillion.
The MTEF/FSP sets out the government’s spending plans for the next three years, generally incorporating key sources of revenue, oil production expectations and the dollar/naira exchange rate, among others.
In a letter read to senators by the Deputy President of the Senate, Senator Barau Jibrin, President Bola Tinubu wrote: “Given that the Federal Government budget for 2026 will be prepared based on the MTEF and FSP fiscal parameters and assumptions approved for 2026-2028, I request the cooperation of the National Assembly for expeditious legislative action on the presentation.”
By 2026, the document estimates Nigeria’s total revenue at approximately N34.33 trillion.
This implies that the government will have to purchase another N20 trillion to address the deficit, and a debt servicing implication of about N15.9 trillion.
Crude oil production, the main source of income, is estimated at 1.84 million/bpd and the benchmark is $64.85 per barrel.
The MTEF projects recurrent/non-debt expenditure for 2026 of N15.27 trillion.
Other projections include a dollar/naira exchange rate of $1 to $1,512 and Gross Domestic Product (GDP) growth of 4.68 percent.
The MTEF 2026-2028 arrived late to the National Assembly, as Section 11(1)(b) of the Fiscal Responsibility Act 2007 states that the document must reach the Legislature no later than four months before the beginning of the next financial year.
It states: “The Federal Government, after consultation with the states: (a) not later than six months after the commencement of this Act, cause to be prepared and presented to the National Assembly, for its consideration, a Medium-Term Expenditure Framework for the next three financial years; and (b) thereafter, not later than four months before the beginning of the next financial year, cause to be prepared a Medium-Term Expenditure Framework for the next three financial years.”
The country faces some confusion arising from the overlapping 2024 and 2025 budgets.
For now, the capital components of the 2024 main budget and the 2024 supplementary budget remain implemented, having been extended until December 31.
Meanwhile, the execution of the 2025 budget, especially the capital component, is delayed until 2026.
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