The Federal Government, through the Federal Executive Committee (FEC), on Wednesday approved a $100 million loan to the Youth Investment Fund by the African Development Bank (AfDB). The Youth Investment Fund is a program aimed at supporting young Nigerian entrepreneurs between the ages of 18 and 35 across the Micro, Small and Medium Enterprises (MSME).
The approval was announced after the 10th council meeting in 2025 presided over by Mr. Bola Tinubu at the Abuja State House of Assembly.
Minister of Finance and Coordinating Minister for the Economy, Wale Edun, said the Youth Investment Fund will provide a mix of equity, debt, grants and other forms of financial support with the aim of empowering youth, especially at the grassroots level.
Edun said the initiative aims to unlock the productive capacity of Nigeria’s youth by improving access to finance, reducing barriers faced by start-ups and supporting sustainable growth of enterprises across sectors.
He further disclosed that the FEC had also approved a loan from the Islamic Development Bank for the UBAS Integrated Agricultural Development Project, which he described as long-term concessional funding from multilateral development partners aimed at promoting inclusive economic growth.
Mr. Edun explained that the main highlight of the conference was the presentation of the Medium-Term Expenditure Framework (MTEF) for 2026-2028 and the Fiscal Strategy Paper, which sets the tone for government spending priorities for the next three years.
He said President Tinubu commended the Cabinet for its commitment to the A New Hope challenge and stressed the need for rigorous prioritization of public expenditure given current fiscal constraints.
President Edun said he has directed ministries and agencies to direct capital expenditures to growth-promoting projects, strategic legacy infrastructure and programs with the highest possible economic impact.
Mr. Edun gave an overview of recent economic performance, citing data from the National Bureau of Statistics showing that the Nigerian economy grew by 3.89% year-on-year in the third quarter of 2025.
He said overall performance remained below his administration’s annual growth target of 7%, but growth was supported by agricultural and industrial expansion, along with easing inflationary pressures.
“The focus is on improving spending efficiency and ensuring maximum value for each naira,” Edun said, adding that the economic management team is currently collating sectoral priorities for the president’s final approval.
He also pointed out that the 2024 capital budget, which was extended by the National Assembly by almost a year, has been largely implemented, reflecting progress in the execution of capital projects.
For fiscal year 2025, Edun said capital releases are underway and warrants have already been issued, with the ministries expected to complete utilization by Dec. 30.
He added that the Ministry of Budget and Economic Planning will lead the preparation of the 2026 proposal, while the Ministry of Finance can continue to provide the necessary support throughout the process.
Mr. Edun also highlighted the approval of a new $50 million agricultural development project for Bauchi State, financed by the Islamic Development Bank, which he described as part of efforts to strengthen the capital budget and restore the January-December budget cycle.
Shedding further light on the fiscal framework, Minister of Budget and Economic Planning Atiku Bagudu said the FEC had adopted the 2026-2028 MTEF, which was developed in collaboration with the economic management team, private sector stakeholders, civil society and development partners.
Bagudu explained that the framework reflects the nation’s priorities and aligns fiscal planning with the administration’s broader economic reform agenda.
He cited key assumptions underlying the framework, including the 2026 budget’s benchmark crude oil price of $64.85 per barrel, crude oil production index of 1.8 million barrels per day, and exchange rate of $1 = 1,512 naira.
According to him, total federal government revenue in 2026 is projected to be N34.33 trillion, which is a 16 percent decrease compared to the 2025 estimate.
He said statutory provisions are expected to reach N3 trillion, while debt servicing is expected to be N10.91 trillion and personnel costs are expected to be N15.27 trillion.
The projected budget deficit is N20.1 trillion, equivalent to 3.61% of gross domestic product, Bagudu said.
He added that President Tinubu had directed stronger coordination between fiscal and monetary authorities, increased investment in security and training institutions, and stricter measures to stem revenue leakage in the oil, gas and solid minerals sectors.
Mr. Bagudu stressed that priority will also be given to innovative infrastructure projects that can foster long-term economic growth and improve national competitiveness.
“The President believes that with macroeconomic stability and diligent implementation of the MTEF, Nigeria will achieve higher growth and deepen reforms under the New Hope Agenda.”
Bagudu said the FEC’s approval of the MTEF provides a firmer foundation for the government to complete work on the 2026 spending bill even as it manages capital rollovers and addresses persistent gaps between revenue and spending.
In response to questions from reporters, he said the next steps in the budgeting process would follow established institutional procedures.
Describing President Tinubu as a “strong believer in institutional order,” Bagudu said the budget bill will be sent to the National Assembly once it is finalized and sent to the President after consideration by the FEC.
“Parliament will decide when we will be ready to receive the budget,” he said, noting that the approved MTEF, which now belongs to Parliament, provides clearer guidance for finalizing the 2026 budget document.
He acknowledged the multi-year nature of many government projects and revealed that a significant portion of 2025 capital expenditure is expected to be rolled over into 2026.
Once approved by Parliament, ministries and agencies will utilize the carryover funds in line with agreed priorities, he said.
“It can be complex to distinguish between what must be completed within one fiscal period and what naturally spills over into another fiscal period,” Bagudu said, adding that continued engagement between government and lawmakers is helping ensure alignment.
Regarding the challenge of mismatch between revenue and expenditure, he said this problem is common to many budgets, whether national or corporate.
He pointed to changes in interest rates and their impact on debt service obligations as the main pressure on public finances.
Despite a revenue shortfall estimated to be 16% lower than last year’s forecast and the use of deliberately conservative oil assumptions, Bagudu said the government continues to meet its debt obligations and sustain capital spending, particularly on priority infrastructure projects under the “New Hope” agenda.
He provided further background on the oil benchmark and said the 2026 forecast is intentionally conservative to reduce fiscal volatility.
The 2025 budget was based on production of 2.06 million barrels per day at a price of $75 per barrel, while the 2026 framework envisages production of 1.84 million barrels per day at a price of $64.85 per barrel.
Health Minister Ishak Salako underlined his administration’s focus on human capital development and said sustained funding under the medium-term financial framework for 2024-2028 will continue to support the revitalization of primary health facilities across the country.
He said more than 4,000 primary health centers have been completed across the country, and another 8,000 are scheduled for renovation.
Salako highlighted progress in immunization, noting that the HPV vaccine has protected more than 14 million Nigerian children from cervical cancer.
He also said that within a year, nearly 30 million children had been vaccinated with the combined rubella-measles vaccine.
“These achievements demonstrate President Tinubu’s commitment to social welfare and improving the health status of Nigerians,” Salako said.
Officials said the meeting’s approvals and fiscal directives demonstrate a continued push for inclusive and job-rich growth, strengthening security infrastructure and strengthening human capital development.
The 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 Mohamed Idris made this known at a press conference after the Council meeting.
He said the new agricultural mechanization center is expected to enhance year-round agricultural activities, support local communities and boost the country’s food production.
The minister also outlined plans to expand digital connectivity, noting that about 23 million Nigerians currently lack adequate communications infrastructure.
“To address this, the Ministry of Communications and Digital Economy will deploy 4,000 towers in underserved areas to improve connectivity, economic activity and security in these communities,” Idris said.
He noted that this initiative complements the recently approved 2026-2028 MTEF and fiscal strategy document, which prioritizes growth-oriented projects and social welfare programs across sectors.
“These decisions reflect the government’s commitment to inclusive development that ensures that all Nigerians benefit from economic and technological advancements,” Idris added.
Earlier, President Tinubu administered the oath of office to five newly appointed permanent secretaries prior to the start of the FEC meeting.
The person who took the oath was Alhaji Abdulkarim Oji Ibrahim from the North Central region. Dr. John Chidibele Ezeama. Dr. Abdul Sule Usman Garba from the North West; Dr. Isiyaq Musa Mohamed, representing the Northeast; and Dr. Ukaile Binielem Chigbowu of Abia State representing the South East.
The President also administered the oath to the Chairman of the National Population Commission, Aminu Yusuf, and two other members.
During the meeting, the Council observed a minute’s silence in honor of Ambassador Joy Uche Ogwu, former Minister of Foreign Affairs and Permanent Representative of Nigeria to the United Nations.
Ogwu, who died at the age of 79, served under former President Olusegun Obasanjo.
