Abuja, Nigeria
President Bola Tinubu is scheduled to present a record-breaking N54.46 trillion (approx. $32bn) budget proposal for 2026 to a joint session of the National Assembly on Friday. In a letter read by the Speaker of the House of Representatives, Abbas Tajudeen, on Thursday, the President requested an audience at noon on December 19 to formally lay the “Appropriation Bill” before the lawmakers.
The proposed 2026 budget represents a significant increase in spending, even as the government grapples with a substantial fiscal deficit and rising debt-servicing costs. According to the 2026–2028 Medium-Term Expenditure Framework (MTEF) currently being reviewed by parliament, the government expects to retain N34.33 trillion in revenue, leaving a shortfall that will necessitate massive new borrowings.
Budget at a Glance: The 2026 Fiscal Outlook
The proposal outlines a ambitious spending plan, balanced against the reality of Nigeria’s current economic challenges:
- Total Budget Size: N54.46 trillion
- Projected Revenue: N34.33 trillion
- Fiscal Deficit: N20.13 trillion
- New Borrowing: N17.88 trillion (Comprising both domestic and foreign loans)
- Debt Servicing: N15.52 trillion
- Capital Expenditure: N20.13 trillion (Investing in infrastructure and long-term projects)
- Recurrent Expenditure: N15.265 trillion (Non-debt costs, including salaries and administration)
Analysis: The budget highlights the tightening fiscal space in Africa’s most populous nation. With nearly N16 trillion earmarked for debt servicing alone, the government remains heavily reliant on new loans to fund its N20 trillion capital development projects.
The presentation on Friday will mark a critical moment for the Tinubu administration as it seeks to balance infrastructure growth with the need for fiscal sustainability and debt management.
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