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House of Reps approves MTEF/FSP with $64.85 crude oil benchmark for 2026
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Senate adopts lower $60 benchmark, creating divergence between chambers
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Approval clears way for Tinubu to present 2026 budget to National Assembly
The House of Representatives has approved the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), endorsing a crude oil benchmark of $64.85 per barrel for the 2026 fiscal year, a figure higher than the $60 per barrel earlier adopted by the Senate.
The House also approved a total federal expenditure of N54.46 trillion for 2026, comprising N31.83 trillion as Federal Government retained revenue and N20.38 trillion in new borrowings, covering both domestic and foreign loans.
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The approval followed the adoption of a report by the joint Committees on Finance and National Planning during plenary, after the House dissolved into the Committee of Supply, chaired by Deputy Speaker Benjamin Kalu.
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Under the approved framework, key fiscal parameters were retained, including debt service estimated at N15.52 trillion, pensions and retirees’ benefits of N1.376 trillion, and a fiscal deficit of N22.63 trillion.
Also approved were capital expenditure of N20.13 trillion (exclusive of transfers), statutory transfers of N3.152 trillion, and a sinking fund projected at N388.54 billion.
The House further sustained recurrent (non-debt) expenditure of N15.27 trillion, alongside special intervention funds of N200 billion for recurrent spending and N14 billion for capital expenditure.
With the passage of the MTEF and FSP, all legislative requirements have now been completed, paving the way for President Bola Ahmed Tinubu to present the 2026 Appropriation Bill to a joint session of the National Assembly on Friday.
Earlier, Speaker Tajudeen Abbas read a letter from the President confirming his readiness to personally lay the budget before lawmakers, in line with the 1999 Constitution (as amended). According to the letter, Tinubu will present the budget estimates at 2:00 pm on Friday.
Speaking before the report was considered, Deputy Speaker Kalu disclosed that the joint committees made 10 recommendations, all of which were unanimously adopted.
The committees recommended sustaining projected crude oil prices of $64.85, $64.30, and $65.50 per barrel for 2026, 2027, and 2028, respectively, as well as domestic crude oil production estimates of 1.84mbpd, 1.88mbpd, and 1.92mbpd for the same years.
On exchange rates, the House sustained projections of N1,512, N1,432, and N1,383 to the dollar for 2026, 2027, and 2028, respectively, in line with efforts to stabilise the naira. Inflation forecasts of 16.5%, 13%, and 9% for the three-year period were also retained.
The report further projected GDP growth rates of 4.68%, 5.96%, and 7.9% for 2026, 2027, and 2028, citing expected gains from ongoing tax reforms.
Meanwhile, President Tinubu has transmitted the 2025 statutory budget proposal of the Niger Delta Development Commission (NDDC) to the National Assembly, barely days to the end of the year.
In his accompanying letter, the President said the proposal aligns with the Renewed Hope Agenda, adding that the NDDC would prioritise youth employment, energy and power supply, education, health security, agriculture, and enterprise development to drive inclusive growth and poverty reduction.
