By Mercy Gadia Adi
President Bola Tinubu has forwarded the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the House of Representatives, setting the stage for preparations of next year’s federal budget.
The Deputy Speaker, Benjamin Kalu, read the President’s letter addressed to Speaker Abbas Tajudeen during wednesday day’s plenary, signalling the formal transmission of the administration’s fiscal assumptions and spending priorities for the next three years.
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In the communication, President Tinubu noted that the documents were approved at the Federal Executive Council meeting of 3 December, adding that the 2026 national budget would be framed entirely around the parameters contained in the MTEF and FSP. He urged lawmakers to ensure “expeditious legislative action” in line with statutory timelines.
He said:“It is with pleasure that I forward the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF and FSP) for the kind consideration and approval of the House of Representatives.
“The 2026–2028 MTEF and FSP were approved during the Federal Executive Council meeting on December 3, 2025. The 2026 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2026–2028 MTEF and FSP.”
He further solicited the cooperation of the National Assembly for expeditious legislative action on the submission.
Part II, Section 11(1) of the Fiscal Responsibility Act 2007 provides that:
“The Federal Government, after consultation with the states, shall not later than six months from the commencement of this Act, cause to be prepared and laid before the National Assembly, for its consideration, a Medium-Term Expenditure Framework for the next three financial years; and thereafter, not later than four months before the commencement of the next financial year, cause to be prepared a Medium-Term Expenditure Framework for the next three financial years.
(2) The framework so laid shall be considered for approval, with such modifications, if any, as the National Assembly finds appropriate, by a resolution of each House of the National Assembly.
(3) The medium-term expenditure framework shall contain: a Macro-Economic Framework setting out the macroeconomic projections for the next three financial years, the underlying assumptions for those projections, and an evaluation and analysis of the macroeconomic projections for the preceding three financial years.”
As provided by the Act, the Fiscal Strategy Paper shall set out:
The Federal Government’s medium-term financial objectives;
Policies of the Federal Government for the medium term relating to taxation, recurrent (non-debt) expenditure, debt expenditure, capital expenditure, borrowings and other liabilities, lending, and investment;
Strategic economic, social, and developmental priorities of the Federal Government for the next three financial years; and
An explanation of how the financial objectives, strategic priorities, and fiscal measures relate to the economic objectives set out in Section 16 of the Constitution.
It shall also include an expenditure and revenue framework detailing:
Estimates of aggregate revenues for the Federation for each financial year, based on the predetermined Commodity Reference Price and tax revenue projections;
Aggregate expenditure projections for the Federation for each financial year over the next three financial years;
Aggregate tax expenditure floors for the Federation for each financial year in the next three financial years.
These estimates and expenditures must:
Be based on reliable and consistent data certified under Section 13(2)(b) of the Act;
Target the achievement of the macroeconomic projections set out in subsection (2)(a);
Be consistent with the underlying assumptions, objectives, policies, and strategic priorities outlined in the MTEF and Fiscal Strategy Paper;
Include a consolidated Debt Statement describing the fiscal significance of the Federal Government’s debt and measures to reduce it;
Include a statement describing the nature and fiscal significance of contingent liabilities and quasi-fiscal activities, and measures to prevent their crystallization.
Section 12(1) also provides that:
The estimates of aggregate expenditure and the aggregate amount appropriated by the National Assembly for each financial year shall not exceed the estimated aggregate revenue plus a deficit not exceeding three per cent of the estimated Gross Domestic Product, or any sustainable percentage as may be determined by the National Assembly for each financial year.
Aggregate expenditure for the financial year may exceed this ceiling if, in the opinion of the President, there is a clear and present threat to the national security or sovereignty of the Federal Republic of Nigeria.