The Nigerian Senate has officially approved the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), setting the stage for a robust fiscal agenda in the upcoming financial year. The document, which outlines projected revenues, expenditures, and borrowing plans, will serve as the foundation for the 2026 Appropriation Bill.
The approval came on Tuesday following the presentation of a detailed report by Senator Mohammed Sani Musa (APC – Niger East), Chairman of the Senate Committees on Finance. The passage of the MTEF/FSP clears the path for President Bola Tinubu to formally submit the 2026 national budget to the National Assembly, anticipated between now and Thursday, according to Senate President Godswill Akpabio.
Key fiscal projections highlighted in the framework include an oil benchmark price of US$64.85 per barrel, expected aggregate revenue of ₦34.33 trillion, and a fiscal deficit projected at ₦20.13 trillion. Borrowing is estimated at ₦17.88 trillion, while debt servicing obligations are projected at ₦15.52 trillion. Additionally, allocations for pensions, gratuities, and other retirees’ benefits stand at ₦1.376 trillion.
Akpabio emphasized that the MTEF/FSP serves as a preliminary guide rather than a final legislative position. “The Medium-Term Expenditure Framework is a prerequisite before the presentation of the budget. What we are discussing here is not a finality. Should circumstances change, it will be revisited for adjustments or revisions,” he stated.
The Senate’s approval of the MTEF/FSP is a critical step in Nigeria’s budgetary process, providing a structured approach to managing the nation’s resources and ensuring fiscal discipline. Analysts note that while the framework outlines ambitious revenue and expenditure targets, its real impact will depend on the subsequent budget negotiations and the government’s ability to align projected spending with actual revenue inflows.
By setting clear fiscal benchmarks, the 2026–2028 MTEF/FSP aims to guide economic planning, debt management, and social spending over the medium term, reflecting the government’s priorities while providing lawmakers and stakeholders with a roadmap for monitoring fiscal performance.
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