The Federal Government has requested the National Assembly’s approval for a N9.09tn increase to the 2026 budget, signaling a major adjustment to Nigeria’s fiscal framework. President Bola Ahmed Tinubu’s proposal aims to finance the expansion through crude oil gains influenced by the US-Iran conflict, as well as new domestic and foreign loans. The request, delivered in a letter read on the Senate floor by Senate President Godswill Akpabio, is intended to enhance fiscal transparency and support the implementation of priority national programs.
The National Assembly subsequently passed the 2026 Appropriation Bill, raising total expenditure to N68.32tn from the initially proposed N58.18tn. This figure surpasses even the President’s requested increase, reflecting lawmakers’ decision to fund legacy obligations, infrastructure, healthcare, and preparations for the 2027 elections. According to Solomon Adeola, Chairman of the Senate Committee on Appropriations, the revision also accounts for unfinished capital projects from 2025 and ensures alignment with prevailing economic realities while maintaining macroeconomic stability.
The revised budget outlines allocations of N32.287tn for capital projects, N15.427tn for recurrent expenditure, and N15.809tn for debt servicing. Priority interventions include rail projects in Lagos, Kano, Kaduna, and Ogun States, feasibility studies for new urban rail systems, and upgrades to the Calabar–Maiduguri corridor. The health sector received an additional $344.83m (≈N482.76bn) for bilateral agreements, while the judiciary was allocated increased funding to handle election-related disputes. Lawmakers emphasized the importance of addressing unfinished projects and introducing new strategic investments in these key sectors.
To cover the expanded budget, the government plans a combination of higher oil benchmark revenues, increased contributions from the telecom sector, and an uptick in external borrowing. The Senate and House also approved a $6bn loan package, including a $5bn facility from Abu Dhabi Bank and a $1bn UK export finance loan, aimed at bridging the fiscal gap and funding priority infrastructure projects. Proceeds from these loans will target budget implementation, debt repayment, and the modernization of critical ports, including Tin Can Island and Lagos Port Complex.
Economic experts have emphasized strategic deployment of the budget expansion. Aliyu Ilias, CEO of CSA Advisory, called for prioritizing security and economic productivity, noting that stability is key to sustaining growth. Professor Adeola Adenikinju highlighted urgent needs in the power sector, social investment programs, infrastructure, and agriculture to alleviate inflationary pressures and improve citizens’ welfare. Both experts stress that the effectiveness of the N9tn budget increase will depend on timely implementation, transparent oversight, and targeted interventions that address Nigeria’s structural challenges.
source: punch