By Nchetachi Chukwuajah
Nigeria will borrow N17.88 trillion between 2026 and 2028 following the Senate’s approval of the Federal Government’s 2026-2028 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).
The Senate approved the expenditure framework with a total spending of N54.46 trillion and a new borrowing plan of N17.88 trillion, constituting both domestic and foreign borrowings, during plenary on Tuesday, December 16.
The approval followed the consideration of a report presented by Chairman of the Senate Committee on Finance, Sani Musa.
The fiscal framework projects a revenue of N34.33 trillion, debt servicing of N15.52 trillion, and capital expenditure of N20.13 trillion.
The approved paper also estimates exchange rate benchmarks of N1,512/$1 for 2026, N1,432.15/$1 for 2027, and N1,383.18/$1 for 2028.
It also set oil price benchmarks at $60 per barrel for 2026, $65 per barrel for 2027, and $70 per barrel for 2028.
According to the paper, the Federal Government aims to achieve an oil production target of 2.06 million barrels per day for 2026, with a more conservative 1.8 million barrels per day benchmark for actual budget planning.
The MTEF/FSP was considered at the Senate Committee on Supply chaired by the Senate President, Godswill Akpabio.
Recall that President Bola Tinubu transmitted the 2026-2028 plan to the National Assembly for approval last week and was read on the floor of the Senate last Thursday.
President Tinubu said the MTEF and FSP were approved by the Federal Executive Council (FEC) on December 3.
The president urged lawmakers to expedite legislative action on the document as the 2026 budget will be prepared on the basis.
The fiscal framework was subsequently referred to the Senate Committee on Finance for further action.
The committee held a public hearing on the framework on Monday, during which members of the federal government’s economic team addressed lawmakers’ concerns on borrowing, foreign exchange projections, and other macroeconomic assumptions.
