Nigeria has increased its 2026 budget to ₦68.30 trillion from the ₦58.47 trillion initially proposed in December by Bola Ahmed Tinubu following approval by the National Assembly.
Lawmakers approved the increase following deliberations by appropriation committees in both chambers of the National Assembly.
The expansion is aimed at addressing carry-over obligations from previous budget cycles, ensuring that unresolved capital projects do not weigh on the implementation of the 2026 fiscal programme.
Alongside the budget approval, lawmakers also cleared a $6 billion external borrowing plan to support the enlarged spending framework.
The loan is expected to cover infrastructure development, debt servicing, and legacy capital commitments, with at least 40 percent earmarked for capital projects across the 2025 and 2026 budgets.
Under the borrowing plan, Nigeria intends to secure $5 billion from the First Abu Dhabi Bank and $1 billion from Citigroup.
Despite the increased spending, fiscal pressures are expected to intensify as the budget deficit is projected to exceed 6 percent of gross domestic product, or approximately ₦31.46 trillion, compared with an earlier estimate of 4.28 percent before the upward revision.
The government is targeting economic growth of 4.68 percent in 2026, slightly above the 4.4 percent forecast by the World Bank.
The growth projection reflects expectations that ongoing reforms, including subsidy removal, exchange rate adjustments, and tax restructuring, will improve public finances and stimulate economic activity.
Since taking office, President Tinubu has implemented one of Nigeria’s most aggressive reform agendas in decades. Key measures include the removal of fuel subsidies, the liberalisation of the foreign exchange market, and efforts to broaden the tax base to boost revenue generation.
While these reforms are designed to strengthen fiscal sustainability over the long term, the immediate impact has been higher inflation and increased cost of living, raising concerns about the social and economic implications of expanded government spending.
The approval of a larger budget and additional borrowing underscores the government’s commitment to infrastructure development and economic expansion. However, it also highlights the growing reliance on debt to finance fiscal operations amid constrained revenue.
The 2026 budget will now be transmitted to the president for assent before implementation begins.
