Echotitbits – Nigeria News

Tag: MTEF

  • Budget tussle: lawmakers split over crude benchmark for 2026–2028 plan

    Budget tussle: lawmakers split over crude benchmark for 2026–2028 plan

    Photo Credit: Punch / File
    2025-12-19 11:00:00

    From Punch coverage of the fiscal plan, Nigeria’s lawmakers are reportedly divided over the crude oil price benchmark proposed in the 2026–2028 Medium-Term Expenditure Framework (MTEF).

    The benchmark matters because it shapes revenue projections, borrowing needs and how aggressively government can fund infrastructure and social programmes.

    Verification: BusinessDay reported the disagreement over the benchmark, while Reuters-based reporting (via Channels TV) has highlighted weak oil market dynamics that could complicate pricing assumptions.

    Quotes: BusinessDay: “Reps, Senate disagree over… crude benchmark…” Channels TV: “Nigerian oil struggles to find buyers…”

    Analysis/Echotitbits take: Nigeria’s fiscal credibility rises or falls on realistic oil assumptions. Watch revised benchmark levels, production assumptions versus theft/vandalism realities, and whether non-oil revenue plans become concrete.

    Source: The Punch — 2025-12-19 — https://punchng.com/mtef-reps-senate-disagree-over-crude-benchmark/

    The Punch 2025-12-19

  • Debt Service and Salaries Outstrip Federal Revenue in 2025 Budget Data

    Debt Service and Salaries Outstrip Federal Revenue in 2025 Budget Data

    2025-12-18 00:00:00

    According to Punch, official budget documents show that debt service and personnel costs consumed more than the Federal Government’s total revenue in the first seven months of 2025, underscoring the pressure on fiscal space.

    The report says earnings came in well below pro-rata targets, forcing deep cuts to capital spending and tightening the room for new projects without additional borrowing or revenue reforms.

    The figures add weight to growing concerns about budget credibility, cash-backing of appropriations, and the need for stronger domestic revenue mobilisation.

    BusinessDay reported that “debt servicing and personnel costs consumed more than the Federal Government’s entire revenue” for the period, citing official budget documents. (BusinessDay)

    Another report on the same figures said Nigeria earned far below targets between January and July and that the gap hit capital releases hard. (Legit.ng)

    Analysis/Echotitbits take: When “fixed” obligations swallow revenue, the real economy suffers via delayed infrastructure and weak service delivery. Watch for 2026 revenue measures, credible subsidy/accounting reforms, and how government aligns spending plans with cash realities.

    Source: Punch — December 18, 2025 (https://punchng.com/salaries-debt-service-gulp-105-of-govt-revenue/)

    Photo credit: Punch

  • Senate backs ₦54.46trn 2026 spending framework, cuts oil price benchmark to $60

    Senate backs ₦54.46trn 2026 spending framework, cuts oil price benchmark to $60

    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/

     

  • Senate tells FIRS to raise 2026 revenue target to ₦35trn, slams “multiple budgets”

    Senate tells FIRS to raise 2026 revenue target to ₦35trn, slams “multiple budgets”

    Photo credit: PunchNG (image on article page)
    2025-12-15

    According to The Punch, the Senate Committee on Finance criticised the Federal Government’s habit of running multiple budgets within a single fiscal year, warning it weakens fiscal discipline and planning.

    The report says the committee directed the Federal Inland Revenue Service (FIRS) to lift its 2026 revenue projection from ₦31tn to ₦35tn during discussions around the 2026–2028 MTEF/FSP.

    It also referenced a claimed revenue gap in the 2025 budget cycle, fueling arguments that rollovers and repeated revisions are becoming systemic.

    BusinessDay: “at least ₦35 trillion in revenue in 2026.”

    TheCable: “raise the 2026 target to N35 trillion from N31 trillion.”

    Analysis/Echotitbits take: This looks like early pressure-setting for 2026 budget negotiations. Watch whether FIRS follows with compliance tech, base-broadening, and enforcement—rather than new rate hikes—and whether the Executive adopts the higher benchmark.

    Source: The Punch — December 15, 2025 (https://punchng.com/senate-kicks-against-multiple-budgets-orders-firs-to-deliver-n35tn-revenue/)

  • Tinubu Sends 2026–2028 MTEF/FSP to Senate for Approval

    Tinubu Sends 2026–2028 MTEF/FSP to Senate for Approval

    Photo Credit:The Nation

    President Bola Tinubu has transmitted the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper to the Senate, seeking expeditious approval ahead of the 2026 budget presentation. The document, already cleared by the Federal Executive Council, proposes a crude benchmark of $64.85 per barrel and an exchange rate of ₦1,512 to the dollar for the 2026 cycle.

    Deputy Senate President Jibrin Barau referred the framework to the Finance Committee with a deadline for its report. Under Nigeria’s Fiscal Responsibility Act, the MTEF/FSP provides the foundation for annual budgets, guiding revenue targets, borrowing limits and expenditure priorities across sectors.

    Source: The Nation – 12 Dec 2025

    2025-12-12 10:00:00 The Nation – 12 Dec 2025 2025-12-12

  • FG’s ₦4tn Power Bond to Be Captured in MTEF

    The Federal Government says its ₦4tn power-sector liquidity bond will be fully reflected in the Medium-Term Expenditure Framework, increasing public debt but assuring investors of sovereign backing. The bond aims to clear long-standing debts to GenCos.

    PUNCH

    11 Dec 2025