By Our Correspondent
Ahead of 2026 budget presentation by President Bola Ahmed Tinubu to the two chambers of National Assembly,
Senate on Tuesday reduced the $64.8 oil price benchmark for the projected N54.46trillion 2026 budget to $60 per barrel but retained all other projections and parameters stated in the 2026 – 2028 Medium Term Expenditure Frame Work ( MTEF) and Fiscal Strategy Paper ( FSP) .

Reduction of the earlier proposed oil price benchmark for the 2026 fiscal year by the Senate , followed recommendations made to that effect by its committee on Finance in a report presented by Chairman of the committee, Senator Sani Musa ( Niger East ) .

Senator Sani Musa in his explanation for the reduction , said it was made in recognition of the global geopolitical tensions in Europe and the Middle East and the sensitivity of global crude oil prices .

Recommended adjustments of $64.30 and $65.50 per barrel oil price benchmark for 2027 and 2028 fiscal years to $65 and $70 per barrel respectively by the committee were also approved by the Senate.

It however sustained domestic crude oil production projections of 1.84 million barrels per day (mbpd) for 2026, 1.88mbpd for 2027 and 1.92mbpd for 2028, expressing confidence in ongoing reforms and efforts to stabilise output.

On macroeconomic assumptions, the Senate endorsed projected exchange rates of N1,512 to the dollar in 2026, N1,432.15 in 2027 and N1,383.18 in 2028, aligning with the Central Bank of Nigeria’s policy direction to stabilise the naira through effective fiscal and monetary policy coordination.

Inflation is projected to moderate steadily over the medium term, with rates of 16.5 per cent in 2026, 13 per cent in 2027 and 9 per cent in 2028. The committee anchored these projections on the commitment of monetary authorities to tame inflationary pressures.

Similarly, the Senate sustained real GDP growth projections of 4.68 per cent for 2026, 5.96 per cent for 2027 and 7.9 per cent for 2028, citing ongoing economic reforms and the anticipated gains from tax reforms expected to take firmer effect from 2026.

A major plank of the report was the emphasis on effective implementation of newly enacted Tax Acts as veritable instruments for economic reform, growth and development.

In this vein, the committee recommended that the Federal Government implement a National Scanning Policy within the National Single Window of the Nigeria Revenue Service, in collaboration with relevant agencies.

The policy, it said, would enhance revenue assurance, improve trade facilitation, reduce leakages, strengthen transparency and bolster national security.

On fiscal operations, the Senate approved the 2026 Federal Government budget framework with proposed total expenditure of N54.46 trillion. Of this amount, FGN retained revenue is estimated at N34.33 trillion, while new borrowings—both domestic and foreign—are put at N17.88 trillion. Debt service obligations are projected at N15.52 trillion.

The framework also provides N1.376 trillion for pensions, gratuities and retirees’ benefits, while the fiscal deficit is pegged at N20.13 trillion.

Capital expenditure, exclusive of transfers, was sustained at N20.131 trillion, alongside statutory transfers of N3.152 trillion and a Sinking Fund provision of N388.54 billion.

Total recurrent (non-debt) expenditure was approved at N15.265 trillion, with special intervention funds for recurrent and capital spending set at N200 billion and N14 billion, respectively.

In concluding remarks, the committee expressed profound appreciation to the Senate and members of the Committee on Finance for their commitment in discharging what it described as a critical national assignment.

It expressed optimism that approval and diligent implementation of the recommendations would serve as a catalyst for sustainable economic prosperity in Nigeria.

In his remarks , the President of the Senate , Godswill Akpabio , commended the committee for a job well-done which according to him, serves as veritable platform for presentation of the 2026 budget by President Bola Ahmed Tinubu before 31st of December this year .

By Our Correspondent

Ahead of 2026 budget presentation by President Bola Ahmed Tinubu to National Assembly,Senate Monday through its committee on Finance , expressed displeasure with multiple budgets implementation in a fiscal year by the federal government as experienced in 2025 .

It consequently tasked the Federal Inland Revenue Service ( FIRS) , to increase its projected revenue target for 2026 from N31trillion to N35trillion even as the federal government lamented shortfalls of N30trillion from N40trillion revenue target for 2025 .

Displeasure of Senators on multiple budgets implementations in a fiscal year , came to the fore during interactive session the Finance Committee , Chaired by Senator Sani Musa ( Niger East), had with leading Managers of the Nation’s economy on the 2026 – 2028 Medium Term Expenditure Framework ( MTEF) and Fiscal Strategy Paoer ( FSP) .

The Minister of Finance and Coordinating Minister of the Economy , Wale Edun , had in his contextual explanations on projections for 2026 budget and implementation of the 2024 and 2025 budgets , informed the committee that while revenues for 2024 budget have been met, that of 2025 have not been met .

” Funding for the capital components of the 2024 budget have been met through realization of the total projection of N26trillion revenue but that of 2025 have not been met .

” Out of projected N40trillion revenue for 2025 fiscal year , only N10trillion have been realized, leaving a shortfall of N30trillion and consequently , making the federal government roll over 70% of capital projects captured in 2025 fiscal year to 2026 “, he said .

Worried by the submission , some members of the committee like Senators Danjuma Goje ( Gombe Central ) , Olalere Oyewumi ( Osun West) , Victor Umeh ( Anambra Central ) , Aminu Iya Abbas ( Adamawa Central ) etc , expressed displeasure with multiple budget implementations in a fiscal year .

Specifically , Senator Goje in his remarks said the practice of implementing multiple budgets in a single year is unacceptable to Nigerians .

” This ugly situation we found ourselves on multiple budget implementations should please end by this year . It is not acceptable. Things must be normalized from next year “, he said .

Senator Oyelere in his comment told the Minister that since budgetary proposals were not given to the government by the governed , government should please present realizable proposals to avoid non – implementations which usually dove tailed into multiple implementations in subsequent years .

Senator Victor Umeh and Ireti Kingibe in their remarks , wondered why the federal government did not fill the missing gaps in revenue targets , with borrowings approved for it from time to time by the Senate and by extension, the National Assembly .

Senator Sani Musa in his capacity as Chairman, however came to the rescue of the Minister by assuring his colleagues and by extension, Nigerians that the required normalization in budget projections and implementation shall be done from 2026 .

He added that 3 – man ad – hoc committee shall be set up by the committee to laise with the Minister and the Accountant – General of the Federation on payment of local contractors for projects executed in 2024 before expiration of the budget on 31st of this month.

For FIRS , Senator Sani Musa tasked its Chairman, Zacch Adedeji , to work towards realizing N35trillion as target revenue for 2026 fiscal year and not the earlier projected N31trillion mentioned by the Chairman.

The FIRS boss had in making the projection said the agency under him, realized N20.2trillion revenue in 2024 and N25.2trillion in 2025 .

He however said that the huge revenue being realized by FIRS and other agencies like Customs , are being swallowed and made insufficient by multiple budget implementations in a fiscal year.

The Minister of Budget and Economic Planning , Senator Atiku Bagudu and Minister of State ( Petroleum ) , Senator Heineken Lokpobiri in their submissions , defended the parameters set for the N54. 4trillion 2026 budget .

The parameters are 1.84million oil production per day , $64.85 oil price benchmark , N1, 512.00 to 1USD as exchange rate etc .

By George Mgbeleke

The Federal Inland Revenue Service (FIRS), is targeting N31 trillion revenue collection for the year 2026.

The FIRS Executive Chairman, Dr Zacch Adedeji disclosed this at the National Assembly, Abuja on Monday, during an interactive session with the Senate Committee on Finance.

The disclosure by Adedeji followed a demand by the chairman of the Senate Finance Committee, Senator Sani Musa, who insisted on getting an answer from the FIRS chairman.

Adedeji had earlier told the committee that he would not be able to fix revenue performance target for 2026 in isolation of other intervening factors.

The chairman and members of the committee however, urged him to set a target, reminding him that the Service exceeded its 2025 revenue generation target of N25.2 trillion by 16 percent.

Dr Adedeji took time to clarify the controversy generated by the Memorandum of Understanding (MoU) signed by FIRS and with France’s Direction Générale des Finances Publiques, at the French embassy in Abuja.

The agreement was formalised by FIRS’ Dr. Zacch Adedeji, and the French Ambassador in Nigeria, Marc Fonbaustier.

The MoU establishes a framework for collaboration between the two agencies, focusing on strengthening tax administration, advancing digital processes, and building institutional capacity.

Explaining the MoU further, Adedeji said the FIRS Establishment Act approved such collaboration with relevant international tax agencies for mutual benefits.

According to him, there is nothing new in the MoU with the French agency, saying that FIRS had similar collaboration with relevant agencies in South Africa, United Kingdom and Singapore at one point or the other in the past.

The FIRS chair dismissed claims in some quarters that information on tax data of Nigerians could be exposed through such collaboration with foreign agencies.

Adedeji said, “Nobody can reveal or release anybody’s tax data to another person or any foreign agency. The French agency they are taking about cannot have access to the tax data of a single Nigerian so the fears are unfounded.”