President Bola Tinubu has transmitted the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2026–2028 to the House of Representatives for approval.
This comes as the House of Representatives called on the federal government, through the Central Bank of Nigeria (CBN), Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance Bank, and the Federal Ministry of Finance, to immediately suspend all deductions on N419.42 COVID-19 intervention loans.
The President’s communication on the MTEF and FSP, addressed to Speaker Abbas Tajudeen, was read by the Deputy Speaker, Hon. Benjamin Kalu, during on Wednesday’s plenary.
Tinubu, while expressing his pleasure in submitting the 2026–2028 MTEF and FSP to the House for its consideration and approval, explained that the Federal Executive Council had endorsed the documents on December 3, 2025, and noted that the federal government’s 2026 budget would be prepared using the fiscal assumptions and parameters contained in the approved framework.
He also appealed to the National Assembly to act swiftly on the submission.
He cited Part II, Section 11(1) of the Fiscal Responsibility Act 2007, which requires the federal government, after consulting the states, to prepare and lay before the National Assembly a Medium-Term Expenditure Framework for the next three financial years within six months of the Act’s commencement; and subsequently no later than four months before each new financial year begins, to prepare another three-year framework.
Subsection (2) of the Act stated that the framework submitted must be reviewed and approved, along with any amendments deemed necessary through resolutions passed by both chambers of the National Assembly.
Subsection (3) mandated that the MTEF must include a Macro-Economic Framework outlining economic projections for the next three years, the assumptions supporting those projections, and an analysis of macroeconomic performance over the previous three years.
As required by the Act, the FSP must present the federal government’s medium-term financial objectives; its policies concerning taxation, recurrent (non-debt) spending, debt servicing, capital expenditure, borrowing, lending, and investment; its economic, social, and developmental priorities for the next three years; and an explanation of how these goals and policies align with the economic objectives set out in Section 16 of the Constitution.
The document must also contain a revenue and expenditure framework, including projected total revenues for each financial year based on an agreed Commodity Reference Price and expected tax revenues; projected total spending for each of the next three years; and minimum tax expenditure thresholds for each of those years.
These projections must be based on reliable, consistent data certified under Section 13(2)(b) of the Act; aim to achieve the macroeconomic targets listed in subsection (2)(a); align with the assumptions, objectives, policies, and priorities in the MTEF and FSP; a consolidated Debt Statement detailing the fiscal implications of the federal government’s debt and proposed strategies for reducing it and a statement outlining the nature and fiscal significance of any contingent liabilities and quasi-fiscal activities as well as measures to prevent them from materialising.
Section 12(1) further states that the National Assembly’s approved aggregate expenditure for each financial year must not exceed the projected total revenue plus a deficit capped at three percent of the estimated Gross Domestic Product, unless the National Assembly sets another sustainable limit.
However, the expenditure ceiling may be surpassed if, in the President’s judgment, there is an imminent threat to Nigeria’s national security or sovereignty.
Meanwhile, the House of Representatives has called on the federal government, through the CBN, NIRSAL Microfinance Bank, and the Federal Ministry of Finance, to immediately suspend all deductions on the N419.42 COVID-19 intervention loans.
It also urged the federal government, in collaboration with the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, the Federal Ministry of Finance, NIRSAL Microfinance Bank, and CBN, to grant a total waiver on the outstanding COVID-19 intervention loans owed by vulnerable households and micro-businesses, in recognition of their inability to repay under current harsh economic conditions.
The resolutions of the House were sequel to the adoption of a motion moved at the plenary on Wednesday by Sponsor Hon. Saidu Abdullahi.
Moving the motion, the lawmaker explained that the federal government, through the CBN and the NIRSAL Microfinance Bank, introduced the COVID-19 Targeted Credit Facility (TCF) during the pandemic, disbursing N419.42 billion to households, micro, small, and medium enterprises to cushion the devastating socioeconomic impact of the global lockdown.
He added that the programme reached 792,936 beneficiaries nationwide; 674,972 households and 117,964 small businesses, with women accounting for 45 per cent of beneficiaries (about 330,128 women supported with N159.21 billion).
Abdulahi added that the TCF was credited with creating or sustaining about 1,585,872 jobs, underscoring its significant impact on livelihoods and enterprise stability during and after the pandemic.
The lawmaker expressed concern that as of September 2023, N261.07 billion (about 62 per cent) of the loans remained unpaid, while N378.03 billion was classified as outstanding, reflecting widespread inability to repay among vulnerable households and micro-enterprises.
Abdullahi noted that recent CBN surveys showed rising default rates across household and enterprise lending in Q4 2024 and Q2 2025, driven by inflation above 24 per cent, severe food insecurity, loss of purchasing power, business closures, and shrinking household incomes.
He said despite the high default figures reported in 2023, substantial recoveries have been made through the unplanned automatic deductions from beneficiaries’ bank accounts between late 2023 and December 2025.
This, he stated, suggested that the current outstanding exposure might be significantly lower and therefore fiscally manageable for a structured waiver.
Abdulahi stressed that the COVID-19 TCF was fundamentally a survival support loan, not a conventional business facility, as many households used the funds for essential needs such as food, shelter, healthcare, and school fees during the lockdown, making repayment unrealistic for those who have not recovered economically.
He acknowledged that Nigeria has a strong domestic precedent of leniency in the Anchor Borrowers Programme, where, despite its commercial nature and a default rate exceeding 50 per cent, the federal government has repeatedly provided restructuring and partial waivers.
He recalled that loan waivers for pandemic-era support align with international best practices; countries such as the United States, Canada, Germany, South Africa, and India forgave or waived significant portions of their COVID-19 relief loans or adopted extended moratoriums, recognising the humanitarian context of the pandemic.
The lawmaker expressed worry that the continued automatic debits and aggressive recoveries are inflicting severe hardship on vulnerable Nigerians, risking the collapse of small businesses, worsening unemployment, and heightening social instability.
The House resolved to, “Urge the federal government, through the Central Bank of Nigeria, NIRSAL Microfinance Bank, and the Federal Ministry of Finance, to immediately suspend all deductions on COVID-19 intervention loans:
“Direct the House Committees on Banking Regulations, Finance and Poverty Alleviation to liaise with the Central Bank of Nigeria(CBN), Federal Ministry of Finance, SMEDAN, and NIRSAL Microfinance Bank to ensure transparent, equitable, and efficient implementation of the waiver and restructuring framework.”
Adedayo Akinwale, Juliet Akoje
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