The House of Representatives on Thursday 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, higher than the $60 benchmark adopted by the Senate.
The House also approved a total proposed 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.
The approval followed the adoption of the report of 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.
Key fiscal parameters outlined in the framework include debt service estimated at N15.52 trillion, pensions and retirees’ benefits of N1.376 trillion, and a fiscal deficit of N22.63 trillion. The House also approved capital expenditure (exclusive of transfers) of N20.13 trillion, statutory transfers of N3.152 trillion, and a sinking fund of N388.54 billion. Total recurrent (non-debt) expenditure was sustained at N15.27 trillion, with special interventions for recurrent and capital spending pegged at N200 billion and N14 billion, respectively.
With the passage of the MTEF and FSP, all legislative requirements have been concluded, clearing the way for President Bola Tinubu to present the 2026 budget estimates to a joint session of the National Assembly on Friday. Speaker Tajudeen Abbas read a letter from the President confirming he would lay the budget personally at 2 pm in accordance with the 1999 Constitution.
Deputy Speaker Kalu explained that the joint committees made 10 recommendations, all of which were adopted unanimously by the House. These included 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 projections of 1.84mbpd, 1.88mbpd, and 1.92mbpd over the same period.
The committees also recommended projected exchange rates of N1,512, N1,432, and N1,383 for 2026, 2027, and 2028, respectively, alongside inflation targets of 16.5 per cent, 13 per cent, and 9 per cent. Real GDP growth rates were projected at 4.68 per cent, 5.96 per cent, and 7.9 per cent, reflecting anticipated gains from tax reforms.
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Additionally, the committees recommended implementing a National Scanning Policy within the Nigeria Single Window of the Nigeria Revenue Service to enhance revenue assurance, improve trade facilitation, reduce leakages, and strengthen transparency and national security.
Speaker Abbas announced that the House would reconvene on Tuesday, December 23, 2025, to consider the report of the House Committee on Appropriations on the repeal and re-enactment of the N43.56 trillion 2024 budget.
Meanwhile, President Tinubu has transmitted the 2025 statutory budget proposal of the Niger Delta Development Commission (NDDC) to the National Assembly. The proposal aligns with the Federal Government’s fiscal and developmental priorities under the Renewed Hope Agenda and prioritises youth employment, energy, education, industrial development, health security, and agricultural productivity.