Nigeria has endorsed a new medium-term fiscal framework that outlines a proposed federal budget of 54.5 trillion naira, equivalent to about 37.7 billion dollars, for the 2026 financial year. The approval was announced by the Minister of Budget and Planning, Atiku Bagudu, who said the plan reflects the government’s push for economic stability and growth, according to Reuters.
The fiscal framework projects total federal revenue at 34.33 trillion naira, leaving an expected deficit of 20.1 trillion naira, which represents roughly 3.61 percent of GDP. The government also estimates that debt-service obligations will reach 15.9 trillion naira, while non-recurrent debt expenditure is expected to cost 15.27 trillion naira, as reported by Reuters.
Key assumptions underpinning the plan include an oil price benchmark of 64.85 dollars per barrel and daily crude production of 1.84 million barrels. The government’s oil output target remains higher at 2.06 million barrels per day, but officials noted that conservative estimates were adopted in line with current production realities. The framework also uses an exchange rate of 1,512 naira to the dollar and anticipates GDP growth of 4.68 percent in 2026, according to Reuters.
The proposal forms part of the Medium-Term Expenditure Framework covering 2026 to 2028, which aims to balance fiscal consolidation with strategic investment in infrastructure and social services. Officials said the plan is designed to help Nigeria navigate global economic uncertainty while maintaining a pathway toward long-term fiscal sustainability.
