Photo Credit: Punch
2025-12-16
Lawmakers in the Senate have approved the 2026–2028 medium‑term expenditure and fiscal strategy framework, endorsing a ₦54.46 trillion 2026 spending plan and lowering the crude oil benchmark for 2026 to $60 per barrel.
According to reports on the debate, the lower benchmark reflects caution about global oil volatility, even as output assumptions remain aggressive. The framework also keeps key macro assumptions such as the exchange‑rate projection and multi‑year inflation and growth targets.
The decisions matter because they set the ‘envelope’ for the 2026 budget — shaping how much government can borrow, what it can spend on capital projects, and how it prioritises debt servicing and social spending.
Markets will be watching whether the conservative oil price assumption reduces revenue disappointment — and whether reforms, including tax administration changes, can realistically close the gap between projections and collections.
BusinessDay: Musa said the adjustment was necessary “in recognition of the global geopolitical tensions in Europe and the Middle East and the sensitivity of global crude oil prices.”
THISDAY: “A key decision was the downward review of the crude oil benchmark price for 2026 from $64.85 per barrel to $60.”
Analysis/Echotitbits take: A lower oil benchmark can improve budget credibility — but only if production and revenue assumptions aren’t over‑optimistic. Watch the final budget draft, borrowing plans, and how the government hedges against oil‑price and FX shocks.
Source: Punch — December 17, 2025 — https://punchng.com/senate-lowers-oil-benchmark-approves-n54-46tn-budget/
