The Senate has authorized the 2026–2028 Medium Time period Expenditure Framework (MTEF) and Fiscal Technique Paper (FSP) submitted by President Bola Tinubu, paving the best way for the presentation of the 2026 Appropriation Invoice to a joint session of the Nationwide Meeting.
As a part of the approval, the Senate revised the crude oil benchmark value for 2026 downward to $60 per barrel from the $64.85 proposed by the chief, whereas setting benchmarks of $65 and $70 per barrel for 2027 and 2028, respectively.
The higher chamber defined that the adjustment was knowledgeable by heightened geopolitical tensions in Europe and the Center East, in addition to ongoing volatility in world oil costs.
The approval adopted the consideration and adoption of the report of the Senate Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), throughout plenary.
Beneath the authorized framework, the Senate endorsed a federal expenditure estimate of N54.46 trillion for 2026, aimed toward cushioning the financial system towards world shocks.
The projected alternate fee was pegged at N1,512 to the greenback for 2026, N1,432.15 for 2027, and N1,383.18 for 2028, in step with the Central {Bank} of Nigeria’s alternate fee stability insurance policies.
Inflation is projected to say no regularly, with estimates of 16.5 per cent in 2026, 13 per cent in 2027, and 9 per cent in 2028, reflecting anticipated features from financial tightening and ongoing structural reforms.
Regardless of the conservative oil value assumptions, the Senate retained crude oil production targets of 1.84 million barrels per day for 2026, 1.88 million barrels per day for 2027, and 1.92 million barrels per day for 2028, expressing confidence in continued sector reforms and efforts to stabilise output.
Actual GDP progress projections have been additionally maintained at 4.68 per cent for 2026, 5.96 per cent for 2027, and seven.9 per cent for 2028, pushed by anticipated advantages from tax reforms and broader {economic} restructuring.
On fiscal operations, the Senate authorized federal authorities retained income of N34.33 trillion, new borrowings of N17.88 trillion, and debt service obligations of N15.52 trillion, leading to a projected fiscal deficit of N20.13 trillion for 2026.
The framework allocates N1.376 trillion for pensions, gratuities and retirees’ advantages, N20.131 trillion for capital expenditure (excluding transfers), statutory transfers of N3.152 trillion, and a Sinking Fund of N388.54 billion.
Whole recurrent (non-debt) expenditure was authorized at N15.265 trillion, whereas particular intervention funds for recurrent and capital spending have been fastened at N200 billion and N14 billion, respectively.
The Senate additionally endorsed the efficient implementation of newly enacted tax legal guidelines and authorized the introduction of a Nationwide Scanning Coverage inside the Nationwide Single Window of the Nigeria Income Service, in collaboration with related companies.
The coverage is predicted to strengthen income assurance, improve commerce facilitation, cut back leakages, enhance transparency, and enhance nationwide safety.
In his closing remarks, Senator Musa counseled lawmakers and members of the Finance Committee for his or her diligence, expressing confidence that the authorized framework would promote fiscal stability and sustainable {economic} progress.