FG Expands 2026 Budget, Raises Borrowing Plan to ₦29.2 Trillion
FG Expands 2026 Budget, Raises Borrowing Plan to ₦29.2 Trillion
The Federal Government (FG) has increased its borrowing plan for 2026 to ₦29.2 trillion following an expansion of the national budget approved by the National Assembly.
The revised borrowing figure represents an ₦11.31 trillion increase from the earlier ₦17.89 trillion projection contained in the 2026 Budget Call Circular. The update is captured in the Appropriation Bill and the House of Representatives Order Paper dated March 31, 2026.
Under the new framework, total expenditure is projected at ₦68.32 trillion, while expected revenue stands at ₦36.87 trillion, resulting in a deficit of ₦31.46 trillion. The shortfall is expected to be largely financed through borrowing, with additional contributions of ₦189 billion from asset sales and privatisation, and ₦2.05 trillion from project-linked loans.
Debt servicing is estimated at ₦15.81 trillion, including ₦10.16 trillion for domestic debt and ₦5.36 trillion for foreign obligations. Recurrent (non-debt) expenditure is projected at ₦15.43 trillion, while capital expenditure is set at ₦32.29 trillion.
Lawmakers said the upward review aims to clear outstanding obligations, fund infrastructure, strengthen the judiciary, improve healthcare, and support preparations for the 2027 general elections.
To boost revenue, the FG raised the oil benchmark by $10 per barrel, a move expected to generate an additional ₦2.59 trillion. It also projected increased tax contributions from the telecommunications sector, including ₦724 billion from MTN and ₦150 billion from Airtel.
Despite these measures, external borrowing rose by ₦6.16 trillion, with the Senate already approving President Bola Ahmed Tinubu’s request for a fresh $6 billion loan.
The move has attracted criticism from opposition figures and economic experts.
Former Vice President Atiku Abubakar warned that excessive borrowing, backed by weak legislative oversight, could pose risks to the country’s future.
Economists such as Muda Yusuf and Aliyu Ilias also cautioned that widening deficits may fuel inflation, weaken fiscal stability, and heighten the risk of a debt crisis.
Civil society groups shared similar concerns. A representative of BudgIT said the pattern of borrowing has yet to translate into meaningful development, urging stricter monitoring to ensure funds are invested in impactful projects rather than recurrent spending.
