Nigeria’s National Assembly has approved an increase in the 2026 national budget to ₦68.30 trillion, up from the ₦58.47 trillion earlier proposed by President Bola Ahmed Tinubu, following deliberations by appropriation committees in both legislative chambers.
The revised fiscal plan incorporates additional allocations intended to address outstanding obligations from previous budget cycles, ensuring continuity of capital projects that were not fully executed in prior years.
Lawmakers also approved a $6 billion external borrowing programme to support the expanded budget framework, with funds expected to be directed toward infrastructure development, debt servicing, and legacy capital commitments.
Brandspur Banking News Desk reports that at least 40 percent of the approved external borrowing is earmarked for capital expenditure across the 2025 and 2026 fiscal periods, reflecting the government’s focus on funding infrastructure while managing fiscal pressures.
Under the borrowing arrangement, Nigeria plans to raise $5 billion from the First Abu Dhabi Bank and an additional $1 billion from Citigroup, further highlighting the country’s reliance on international financing sources to bridge its budgetary gap.
The approved budget expansion has, however, widened Nigeria’s fiscal deficit, which is now projected to exceed 6 percent of gross domestic product, equivalent to approximately ₦31.46 trillion, compared with an earlier estimate of 4.28 percent before the revision.
Economic projections tied to the 2026 budget indicate that the government is targeting a growth rate of 4.68 percent, slightly above the World Bank’s forecast of 4.4 percent for the same period.
The growth outlook is anchored on ongoing macroeconomic reforms, including the removal of fuel subsidies, exchange rate liberalisation, and efforts to broaden the tax base in order to improve revenue generation and strengthen public finances.
Since assuming office, President Tinubu’s administration has implemented a series of structural reforms aimed at stabilising the economy and improving fiscal sustainability, though these measures have contributed to higher inflation and increased living costs in the short term.
The approval of the enlarged budget underscores the government’s commitment to infrastructure investment and economic expansion, even as it continues to rely heavily on borrowing to finance its fiscal operations amid constrained revenue performance.
Following legislative approval, the 2026 budget will now be transmitted to the President for assent before implementation commences, marking the next phase in Nigeria’s fiscal planning process for the year.
