The National Assembly on Tuesday approved a N68.32 trillion budget for 2026, representing a significant expansion from the N58.18 trillion originally proposed by President Bola Ahmed Tinubu. The increase follows a formal request from the President for an additional N9.09 trillion, intended to finance critical projects, address legacy obligations from previous fiscal years, and enhance fiscal transparency in the execution of national programmes.
President Tinubu’s request was conveyed in a letter read on the Senate floor by Senate President Godswill Akpabio during plenary. The President explained that the adjustment would allow the government to capture existing public debt obligations more accurately within the fiscal framework, provide for a limited number of strategic priority projects, and align the 2026 financing plan to safeguard macroeconomic stability while reducing pressure on the domestic financial market. “The proposed adjustment is aimed at strengthening fiscal transparency and ensuring the effective implementation of priority national programmes,” the letter read.
An analysis by BrandIconImage showed that adding the President’s requested N9.09 trillion to the original proposal would bring the budget to approximately N67.3 trillion. However, the approved figure of N68.32 trillion reflects an additional increase of about N1 trillion, which lawmakers said would help clear legacy obligations, fund key infrastructure, strengthen the judiciary, boost healthcare interventions, and support preparations for the 2027 general elections.
Chairman of the Senate Committee on Appropriations, Solomon Adeola, said the increase was necessary to regularise outstanding commitments from previous fiscal years, align the budget with prevailing economic conditions, and maintain macroeconomic stability. He emphasised that the upward revision also accommodates expenditures that were omitted in the initial proposal and prevents unresolved obligations from undermining the 2026 fiscal plan. A major component of the adjustment is the rollover of N7.71 trillion in outstanding capital obligations from the 2025 budget, as approximately 70 per cent of capital projects under the 2025 Appropriation Act were affected by revenue shortfalls, creating the need for carryover into the new fiscal year to avoid project abandonment and rising costs.
In addition to addressing legacy liabilities, the budget incorporates new provisions for strategic interventions across key sectors. N478.6 billion was allocated as the Federal Government’s equity contribution under the Ministry of Finance Incorporated framework to support rail projects in Lagos, Kano, Kaduna, and Ogun States. Funding was also provided for feasibility studies for urban rail systems in Enugu and Maiduguri and upgrades to the narrow-gauge rail network. The committee approved N8.96 billion for feasibility studies on the Calabar–Maiduguri corridor and the Maiduguri–Sokoto superhighway under the Tinubu National Beltway Initiative.
The health sector received an additional $344.83 million, equivalent to about N482.76 billion, earmarked for priority interventions under bilateral agreements to enhance healthcare infrastructure and service delivery. The judiciary also benefited from increased funding, with N98.5 billion allocated to the Court of Appeal, N36.7 billion to the Supreme Court, and N268.54 billion to restore its budget ceiling and accommodate the appointment of additional judges ahead of the 2027 elections. Lawmakers stressed that strengthening the judiciary was essential for handling election-related disputes and ensuring timely justice.
To finance the expanded budget, a combination of revenue measures and borrowing was proposed. The oil benchmark was increased by $10 per barrel, projected to generate an additional N2.592 trillion. Improved contributions from the telecommunications sector following tariff adjustments and policy reforms are expected to yield N874 billion, with MTN Nigeria projected to contribute N724 billion in company income tax and Airtel Nigeria N150 billion. Despite these measures, lawmakers approved an increase in external borrowing by N6.163 trillion to bridge the financing gap, noting that the borrowing remains within manageable limits.
The 2026 budget, as approved, is designed to strengthen macroeconomic stability, improve the business environment, create jobs, and reduce poverty. Priority sectors include security, infrastructure, health, education, and human capital development. The Senate recalled that it had debated the general principles of the bill in December 2025 and engaged in detailed scrutiny, including consultations with the President’s economic team. A public hearing held on February 9, 2026, themed “From Budget to Impact,” drew inputs from government agencies, civil society organisations, development partners, and private sector stakeholders. Lawmakers also raised concerns over delays in fund releases and other bureaucratic bottlenecks that affected the implementation of the 2025 budget, warning that such challenges could weaken the impact of the 2026 fiscal plan. The committee recommended stronger collaboration between the executive and legislature and improved oversight to ensure timely project execution. It also proposed extending the 2025 Appropriation Act to June 30, 2026, to allow the completion of ongoing projects.
The House of Representatives, presided over by Speaker Tajudeen Abbas, also passed the N68.30 trillion Appropriation Bill, including the extension of the capital component of the 2025 budget from March 31 to June 30, 2026. The proposed total expenditure of N68.30 trillion includes projected revenue of N34.33 trillion, leaving a budget deficit of N23.85 trillion, representing 4.28 per cent of Gross Domestic Product. The macroeconomic assumptions include an oil benchmark of $64.85 per barrel, a production target of 1.84 million barrels per day, and an exchange rate of N1,400 to the dollar. The Federal Government’s share of the main revenue pool is projected at N21.62 trillion, while revenue targets from tax and non-tax sources are N124.25 trillion and N845.98 billion, respectively. The government expects to generate N1.37 trillion from foreign aid and grants, with government-owned enterprises projected to contribute N10.27 trillion to the revenue pool.
The budget also includes allocations for regional development and statutory transfers. The Niger Delta Development Commission received N618.13 billion, the North-East Development Commission N244.07 billion, and the North-West Development Commission N145 billion. The South-West, South-South, South-East, and North-Central Development Commissions each received N140 billion. Other statutory transfers include N577.85 billion for the National Assembly, N1 trillion for the Independent National Electoral Commission, N20 billion for the National Human Rights Commission, and N29.46 billion for the Public Complaints Commission. Domestic debt servicing, including ways and means, was allocated N10.16 trillion, while foreign debt servicing received N5.36 trillion. Key federal ministries and offices received appropriations including the Presidency (N142.42 billion), Ministry of Defence (N2.69 trillion), Ministry of Foreign Affairs (N287.90 billion), and Office of the Head of the Service of the Federation (N17.17 billion), among others.
Addressing lawmakers shortly before passage, House Committee on Appropriations Chairman Abubakar Bichi emphasised that all appropriated funds must be released from the Consolidated Revenue Fund of the Federation solely for purposes specified in the executive bill. On virement, he noted that any project requiring adjustments in funding must first receive prior National Assembly approval. He also directed the Accountant General of the Federation to maintain a separate record for revenues accruing to the Consolidated Revenue Fund in excess of the oil price benchmark, including monies from the sale of government crude oil above the approved benchmark, the Petroleum Profit Tax, and royalties on oil and gas.
With both chambers having passed the budget, it is expected to be transmitted to President Tinubu for assent in the coming days, setting the stage for the implementation of Nigeria’s largest-ever fiscal plan and marking a significant milestone in the country’s economic strategy for 2026.
$6 Billion External Loans for Budget and Infrastructure
The National Assembly has granted approval for President Bola Tinubu to secure fresh external loans totaling $6 billion, a move aimed at bridging fiscal gaps and funding critical infrastructure projects across the country.
The decision followed presentations by the chairmen of the Senate and House Committees on Local and Foreign Debts—Aliyu Wamakko and Abubakar Nalaraba—whose reports were considered during plenary sessions on Tuesday.
The Senate acted just hours after the President formally wrote to lawmakers requesting backing for the facilities, highlighting the Executive’s urgent push to secure financing for priority sectors.
In a letter addressed to Senate President Godswill Akpabio, Tinubu requested approval to borrow $5 billion from First Abu Dhabi Bank in the United Arab Emirates. The facility, he said, would be released in tranches to support budget deficit financing, meet existing debt obligations, and provide liquidity for urgent financial commitments.
“The purpose of this letter is to request the approval and resolution of the National Assembly pursuant to the provisions of Sections 21(1) and 27(1) of the Debt Management Office Establishment Act 2003 to establish a structured total return swap derivative external financing programme of up to $5 billion,” the letter stated.
According to the President, the funds will be directed toward budget implementation, key infrastructure development, and repayment of relatively expensive domestic and foreign debts. He added that the loan will also enable the federal government to respond promptly to unforeseen financial needs.
Tinubu noted that Nigeria’s total public debt currently stands at $110.3 billion (approximately N159.2 trillion) as of December 31, 2025.
In a separate letter, the President sought approval for a $1 billion loan facility from UK Export Finance, arranged through Citibank, London. The funds are intended for the modernization and rehabilitation of the Lagos Port Complex and Tin Can Island Port, addressing longstanding operational challenges and enhancing the country’s maritime sector.
“The rehabilitation of the ports project is a strategic modernization initiative of the Federal Government through the Nigerian Ports Authority to restore and upgrade two of Nigeria’s most vital ports, which have reached critical engineering failures,” the letter explained.
Following the submission of the requests, Senate President Akpabio referred the letters to the Senate Committee on Local and Foreign Debts, directing the panel to expedite review. The House of Representatives followed a similar procedure, referring the requests to the Committee on Aids, Loans, and Debt Management before considering the reports in a Committee of Supply session.
House committee chairman Nalaraba emphasized the importance of the $5 billion total return swap with First Abu Dhabi Bank to support federal funding and fiscal liquidity management. He noted that the loan would be collateralized with naira-denominated Federal Government Securities, with provisions for margin payments if the collateral value fluctuates.
The committees recommended that the loan be drawn in tranches, with each tranche accompanied by the necessary confirmation and ancillary agreements, and that the proceeds be used for budget execution, priority infrastructure projects, and repayment of high-cost debt.
After returning from the Committee of Supply, both chambers unanimously approved the loans, marking another step in the government’s ongoing strategy of combining domestic and external financing to meet budgetary and infrastructure needs.
Economists Urge FG to Prioritise Security, Power, and Social Support in N9 Trillion Budget Expansion
Experts have weighed in on the proposed N9 trillion budget expansion, urging the Federal Government to focus on security, economic productivity, and targeted support measures to ensure the additional funds translate into tangible benefits for Nigerians.
Aliyu Ilias, Chief Executive Officer of CSA Advisory and a development economist, stressed that stabilising the country’s security situation must be the foremost priority, arguing that economic growth cannot thrive amid insecurity.
“The first sector these funds should be channelled into is security. Once we stabilise security, then we can focus on the economy, particularly trade and industry, to make things actually work,” Ilias said in a telephone interview.
He also called for targeted interventions to mitigate the impact of rising crude oil prices on citizens, including subsidies or support mechanisms for households and critical industrial players.
“I expect some form of relative subsidy to help people cope with higher petrol prices. Support could even extend to key players like Dangote to leverage broader economic benefits if funds are directed to that sector,” he added.
Ilias noted that the proposed budget review aligns with Nigeria’s historical pattern of adjusting fiscal plans during the year and highlighted structural challenges in previous budgets, such as low capital project implementation. He also cited fluctuating global oil prices as a factor creating room for upward budget adjustments.
While supporting a larger fiscal framework, Ilias emphasised that revenue generation must be strengthened to sustain increased spending. “I advocate for a bigger budget, but only if we can bolster revenue. A larger budget allows for more project implementation and development,” he said.
He further stressed the need to increase capital expenditure, warning that global economic volatility could exacerbate Nigeria’s debt profile. “The effectiveness of the budget review will ultimately depend on how well these additional funds are utilised,” Ilias noted.
Similarly, Professor Adeola Adenikinju, an economist, urged the government to prioritise the power sector, social investment programmes, infrastructure, and agriculture to address pressing economic challenges and improve citizens’ welfare.
“The power sector is critical because electricity underpins economic growth and general welfare,” Adenikinju said. Although the sector has been privatised, he pointed to persistent challenges, including legacy debts and tariff-related issues, that require urgent attention.
He emphasised the need to modernise transmission and distribution infrastructure to improve service delivery. Beyond power, Adenikinju highlighted the importance of stronger social protection measures to cushion vulnerable Nigerians from the effects of economic reforms.
“The reforms initiated under President Bola Ahmed Tinubu’s administration, such as subsidy removal and single-unit pricing, have intensified inflationary pressures, affecting household welfare. Targeted relief for the poorest is essential,” he said.
Adenikinju also identified poor infrastructure, particularly road networks, as a driver of high food prices, calling for investments in rural–urban transport links to ease the cost of moving food from production areas to cities.
“Road infrastructure must be improved, especially routes from food-producing areas to urban centres,” he said, adding that agricultural support—through provision of seeds and subsidised fertilisers—is crucial to sustaining food production.
“The rising cost of fertilisers due to global factors is affecting local production. Government support in this area is essential,” Adenikinju concluded.
Both experts agree that while the expanded budget offers an opportunity to drive development, its success will depend on prioritised spending, strategic interventions, and effective implementation.