The Federal Government has increased its 2026 borrowing projection to N29.20 trillion as rising expenditure and a widening fiscal deficit push financing needs higher, according to official budget documents.
The revised figure marks a substantial jump from the earlier estimate of N17.89 trillion outlined in the 2026 Abridged Budget Call Circular, reflecting a difference of over N11 trillion following updates to the Appropriation Bill approved by the National Assembly.
Brandspur Banking News Desk reports that the latest budget framework shows a total fiscal deficit of N31.46 trillion, driven by projected government spending of N68.32 trillion against expected revenues of N36.87 trillion.
The financing structure indicates a heavy reliance on borrowing to bridge the gap, with debt instruments accounting for the bulk of deficit funding. Additional financing sources include N189.16 billion expected from privatisation and asset sales, alongside N2.05 trillion from multilateral and bilateral project-tied loans.
Revenue projections show contributions from multiple streams, including N25.92 trillion from federation accounts, N4.31 trillion from independent government revenues, and N5.85 trillion from government-owned enterprises. Grants and aid are estimated at N1.37 trillion, while special funds are expected to contribute N300 billion.
On the expenditure side, debt servicing remains a major component of the budget at N15.81 trillion, underscoring the growing cost of managing existing obligations. Capital expenditure is projected at N32.29 trillion, while recurrent non-debt spending is estimated at N15.43 trillion. Statutory transfers are set at N4.80 trillion.
Further breakdown shows domestic debt servicing obligations at N10.16 trillion and external debt servicing at N5.36 trillion, highlighting the increasing burden of both local and foreign liabilities.
The Federal Government had earlier sought legislative approval to expand the 2026 Appropriation Bill from N58.4 trillion to N67.4 trillion, with additional revenue measures including adjustments to oil benchmarks and expected gains from the telecommunications sector.
Despite these measures, lawmakers approved increased borrowing to close the financing gap, reinforcing concerns about Nigeria’s rising debt profile and the sustainability of its fiscal framework amid expanding expenditure commitments.
