The Federal Government has requested an upward review of the 2026 budget by ₦9.09 trillion, aiming to finance the increase through oil windfalls from rising crude prices and new borrowing facilities. President Bola Ahmed Tinubu’s request, formally conveyed to the National Assembly, is designed to enhance fiscal transparency, accommodate legacy obligations, and support priority national projects.
The National Assembly subsequently approved a revised 2026 budget of ₦68.32 trillion, up from the original ₦58.18 trillion proposal, signaling a significant expansion in public spending. The additional funds are intended to clear outstanding obligations, fund key infrastructure projects, strengthen the judiciary, boost healthcare, and support preparations for the 2027 general elections.
Budget allocations include ₦32.287 trillion for capital projects, ₦15.427 trillion for recurrent (non-debt) expenditure, ₦15.809 trillion for debt servicing, and ₦4.799 trillion for statutory transfers. A major component of the increase covers ₦7.71 trillion in capital projects rolled over from the 2025 budget. Strategic provisions have also been made for rail infrastructure, urban transport feasibility studies, healthcare interventions, and judicial funding to ensure timely election-related dispute resolution.
To finance the expanded budget, the government will rely on a combination of revenue generation and borrowing. A $10 per barrel increase in the oil benchmark is expected to generate an additional ₦2.592 trillion, while revenue from the telecommunications sector is projected at ₦874 billion. The Federal Government also secured approval to borrow $6 billion in fresh external loans, including $5 billion from First Abu Dhabi Bank for budget financing and $1 billion from UK export finance for port rehabilitation projects.
Economic experts have emphasized the need to prioritise spending on security, electricity, social investment programmes, infrastructure, and agriculture. Chief Executive Officer of CSA Advisory, Aliyu Ilias, urged that security and economic productivity be the foremost focus, while Professor Adeola Adenikinju highlighted power sector reform, social protection, road infrastructure, and support for farmers as critical to sustaining economic growth and improving citizens’ welfare.
The 2026 budget aims to strengthen macroeconomic stability, improve the business environment, create jobs, and reduce poverty. Lawmakers also stressed the need for timely execution, improved oversight, and collaboration between the executive and legislature to ensure that the expanded budget translates into tangible development outcomes.
