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The Federal Government has unveiled a proposed budget plan of N54.43 trillion ($36.2 billion) out of which debt service alone will consume 29.2 per cent of the entire 2026 budget.
The FG projects total revenue of N50.74 trillion for 2026, alongside a targeted economic growth rate of 4.68 per cent.
This comes after the Federal Executive Council approved the 2026 to 2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper on Wednesday.
The Minister of Budget and Economic Planning, Atiku Bagudu, briefed State House correspondents after the meeting and confirmed that the document would be forwarded to the National Assembly on Monday.
Bagudu said the draft was built on a cautious oil price benchmark of 64.85 dollars per barrel and an exchange rate estimate of N1,512 to one dollar for 2026. He explained that the assumptions followed consultations with ministries, private sector operators, civil society groups and development partners.
He revealed that the government adopted dual crude production figures for the first time. The oil industry has been tasked to deliver 2.06 million barrels per day, while a more conservative benchmark production of 1.8 million barrels per day will guide the budget.
The difference provides a safety buffer of 12.6 per cent in case of output disruptions. Bagudu said the benchmark price of $64.85 was lower than what Nigeria usually earns for Bonny Light crude but insisted that caution was necessary.
The MTEF/FSP, a statutory three-year fiscal guide, sets the assumptions that will underpin the 2026 Appropriation Bill, including oil/output benchmarks, revenue profiles, deficit limits, and the spending mix.
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