Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun
The Federal Executive Council (FEC) on Wednesday rose from its 10th meeting in year 2025 with the approval of a $100 million African Development Bank (AfDB) loan for the Youth Investment Fund, a programme designed to support young Nigerian entrepreneurs from age 18 to 35 across micro, small and medium enterprises (MSMEs).
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who briefed newsmen after the FEC meeting presided over by President Bola Tinubu at the State House, Abuja, said the fund will offer equity, debt, grants and other forms of financial support to empower young people at the grassroots level.
He further disclosed that FEC also approved financing from the Islamic Development Bank for the UBAS Integrated Agricultural Development Project, as long-term, concessional funding from multilateral development partners aimed at boosting inclusive growth.
Edun explained that the highlight of Wednesday’s FEC meeting was the presentation of the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper.
According to him, President Tinubu commended ministers for their commitment to the Renewed Hope agenda and stressed the need for strict prioritisation in government spending.
The President, he noted, directed ministries, departments and agencies (MDAs) to channel capital expenditure into growth-enhancing projects, strategic legacy infrastructure and programmes with the highest economic impact.
Edun also referred to National Bureau of Statistics data showing Nigeria’s economy grew by 3.89% in Q3 2025 year-on-year, with agriculture and industry expanding and inflation easing, though still below the administration’s 7% annual growth target.
“The emphasis is on improving expenditure efficiency and ensuring maximum value for every naira,” the Minister said, adding that the economic management team is collating sectoral priorities for the President’s final approval.
Edun noted that the 2024 capital budget, extended for nearly a year by the National Assembly, has been “largely fulfilled.”
He added that the 2025 capital releases are progressing, with warrants issued and ministries expected to conclude utilization by December 30.
Edun said while the Ministry of Budget and Economic Planning will lead on the 2026 proposals, he remains available to support as necessary.
He highlighted the approval of a new $50 million Islamic Development Bank-financed agricultural development project for Bauchi State as part of FEC’s efforts to strengthen capital budgeting and restore the January-December budget cycle.
Shedding more light on the fiscal framework, Minister of Budget and Economic Planning, Atiku Bagudu, announced that FEC had adopted the 2026-2028 MTEF, developed in collaboration with the Economic Management Team, private sector, civil society and development partners to reflect national priorities.
He listed key assumptions including a benchmark oil price of $64.85 per barrel, production benchmark of 1.8 million barrels per day, and an exchange rate of N1,512 to the dollar for year 2026 budget.
According to him, total federal revenue is projected at N34.33 trillion, a 16% decline from the 2025 estimate, while statutory transfers are expected to cost N3 trillion, debt servicing N10.91 trillion and personnel costs N15.27 trillion. The projected deficit stands at N20.1 trillion, or 3.61% of GDP.
Bagudu said President Tinubu has directed strengthened coordination between fiscal and monetary authorities, stepped-up investment in security and training institutions, and tighter measures to plug revenue leakages in the oil, gas and solid minerals sectors.
He stressed that priority will also be given to transformative infrastructure projects capable of driving long-term growth.
“The President believes that with a stabilised macroeconomy and diligent implementation of the MTEF, Nigeria will achieve higher growth and deepen reforms under the Renewed Hope agenda,” he said.
The approval of the Medium-Term Expenditure Framework (MTEF) by the Federal Executive Council (FEC) has provided a firmer basis to conclude work on the 2026 Appropriation Bill, even as it moves to manage capital rollovers and close the persistent gap between revenue and expenditure.
Answering reporters’ questions, Bagudu said the next steps in the budget process would follow established institutional procedures.
According to him, President Tinubu, “a strong believer in institutional order,” will transmit the budget to the National Assembly once it has been finalised and forwarded to him after FEC’s consideration.
“The National Assembly determines when they are ready to receive the budget,” he said, noting that the approved MTEF, now headed to the legislature, offers clearer guidance for concluding the 2026 document.
Bagudu disclosed that a substantial portion of the 2025 capital expenditure is expected to be rolled over into 2026, acknowledging the multi-year nature of many projects.
He explained that once the National Assembly gives its approval, ministries will utilise the carried-over funds accordingly.
“Distinguishing what must be completed within one fiscal period and what naturally spills into another can be complex,” he said, adding that ongoing engagements between the Executive and lawmakers are helping to ensure alignment.
On the persistent mismatch between revenue and expenditure, Bagudu said the challenge is not unusual for any budget, national or corporate.
He pointed to fluctuating interest rates and their impact on debt-service obligations as key pressures.
Despite revenue shortfalls, 16 per cent lower than last year’s projections, and the adoption of deliberately conservative oil assumptions, he said government has continued to meet debt obligations and sustain capital spending, especially on priority infrastructure under the Renewed Hope Agenda.
Providing context on the oil benchmark in the new fiscal framework, Bagudu said the 2026 projections were intentionally conservative.
While the 2025 budget was predicated on $75 per barrel and a production benchmark of 2.06 million barrels per day, the 2026 framework assumes $64.85 per barrel and production of 1.84 million barrels per day to minimize fiscal volatility.
Emphasising on the administration’s focus on human capital, Minister of State for Health, Dr. Ishaq Salako, said sustained funding under the 2024-2028 Medium-Term Fiscal framework would continue to support the revitalisation of primary healthcare facilities nationwide.
He said work on more than 4,000 primary health centres (PHCs) had been completed, with an additional 8,000 scheduled for upgrade.
Salako highlighted significant progress in immunisation, noting that the HPV vaccine has protected over 14 million Nigerian children against cervical cancer, while the combined rubella-measles vaccine reached nearly 30 million children within a year.
“These achievements demonstrate President Tinubu’s commitment to social welfare and improved health outcomes for Nigerians,” he said.
The approvals and fiscal directives, taken together, signal a continued push for inclusive, job-rich growth, stronger security infrastructure and enhanced human capital development.
FEC also approved the establishment of service centers for agricultural mechanization across Nigeria’s six geopolitical zones, and the deployment of 4,000 communication towers to underserved communities.
Minister of Information and National Orientation, Mohammed Idris, who disclosed this at a post-council briefing, said the new agricultural mechanization centers would enhance farming activities throughout the year, supporting local communities and boosting national food production.
The minister also highlighted the government’s plans to expand digital connectivity.
He said: “About 23 million Nigerians currently lack adequate communication infrastructure. To address this, the Ministry of Communications and Digital Economy will deploy 4,000 towers to underserved areas, improving connectivity, economic activity, and security in these communities”.
The Minister noted that these initiatives complement the recently approved 2026-2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, which prioritize growth-oriented projects and social welfare programs across sectors.
“These decisions reflect the government’s commitment to inclusive development, ensuring that all Nigerians benefit from economic and technological advancements,” Idris further stated.
Earlier before the commencement of the FEC meeting, President Tinubu administered oath of office on five newly appointed Permanent Secretaries.
The President administered oath of office on Alhaji Abdulkarim Ozi Ibrahim from the North Central region; Dr. John Chidiebere Ezeamama; Dr. Abdul Sule Usman Garba from the North West; Dr. Ishiyaku Musa Mohammed representing the North East geopolitical zone; and Dr. Ukaire Binyerem Chigbowu from Abia State, representing the South East in the body of Permanent Secretaries.
The President also sworn-in the Chairman of the National Population Commission, Aminu Yusuf as well as two other Commissioners.
The Council also observed a minute silence in honour of the former Minister of Foreign Affairs and Nigeria’s Permanent Representative to the United Nations, Ambassador Joy Uche Ogwu, who died at the age of 79.
Late Ogwu served under former President Olusegun Obasanjo. -Arise
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