The Senate has approved the Central Bank of Nigeria (CBN) exchange rate projection for the 2026 fiscal year while revising downward the benchmark oil price used for budget planning.
The approval followed the consideration of the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which outlines the federal government’s macroeconomic assumptions for the 2026 budget.
Lawmakers endorsed the exchange rate proposal submitted by the CBN, noting that it reflects prevailing market realities and ongoing foreign exchange reforms. However, the Senate adjusted the crude oil price benchmark downward, citing volatility in the global oil market and the need for more realistic revenue projections.
The revised oil price is expected to guide government revenue estimates and spending priorities for the 2026 fiscal year. Senators emphasized that conservative assumptions would help reduce budget deficits and borrowing pressures.
The approval of the MTEF and FSP clears the way for the executive to begin preparation of the 2026 Appropriation Bill, which will be presented to the National Assembly at a later date.
Economic analysts say the decisions signal a cautious fiscal approach as Nigeria navigates inflation, exchange rate pressures, and global economic uncertainties.
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