The Senate on Tuesday approved a downward revision of Nigeria’s crude oil benchmark to $60 per barrel for 2026, while endorsing a N54.46 trillion federal spending framework designed to shield the economy from global volatility.
The decision followed the adoption of far-reaching recommendations of the Senate Committee on Finance, presented at plenary by its Chairman, Senator Sani Musa, during a session presided over by Senate President Godswill Akpabio.
In a move reflecting heightened global uncertainty, the Senate reduced the crude oil benchmark prices earlier proposed by the executive. The revised projections now stand at:
- $60 per barrel for 2026
- $65 per barrel for 2027
- $70 per barrel for 2028
These compare with the initial proposals of $64.85, $64.30 and $65.50 per barrel for the respective years.
According to the committee, the adjustment was necessitated by geopolitical tensions in Europe and the Middle East, as well as the sensitivity of international oil prices to such developments.
Despite the conservative oil price outlook, lawmakers retained Nigeria’s crude oil production assumptions, expressing confidence in ongoing reforms to stabilise output.
The approved production projections are:
- 1.84 million barrels per day (mbpd) for 2026
- 1.88 mbpd for 2027
- 1.92 mbpd for 2028
On macroeconomic parameters, the Senate also endorsed projected exchange rates aligned with the Central Bank of Nigeria’s stabilisation strategy. The approved assumptions are:
- ₦1,512/$ for 2026
- ₦1,432.15/$ for 2027
- ₦1,383.18/$ for 2028
Lawmakers noted that the projections reflect expectations of improved fiscal and monetary policy coordination aimed at strengthening the naira over the medium term.
The Senate said the adopted framework underscores a cautious but realistic approach to budgeting, prioritising economic resilience in the face of uncertain global market conditions.
