President Bola Tinubu on Friday presented a ₦58.18 trillion federal budget for 2026, telling lawmakers that the government will need to borrow about ₦23.85 trillion to cover the gap between what it plans to spend and what it expects to earn.
In simple terms, the government is planning to spend far more money than it will collect, adding to Nigeria’s debt burden at a time when revenue remains weak. Tinubu expects a budget deficit worth 4.28% of gross domestic product in 2026.
Addressing a joint session of the National Assembly in Abuja, Tinubu said the budget was designed to stabilise the economy and push growth after painful reforms.
“The 2026 budget is anchored on realism, prudence and growth orientation,” Tinubu told lawmakers. “We will spend with purpose, manage debt with discipline, and pursue growth that is broad-based, not narrow, and sustainable, not temporary.”
The ₦23.9 trillion shortfall means Nigeria will rely heavily on borrowing again in 2026 – money future taxpayers will have to repay with interest.
Nigeria is already on course to miss its 2025 revenue target by almost ₦30 trillion, raising questions about how realistic the 2026 funding plan is.
A large share of government income is already used to repay old debts, leaving less money for schools, hospitals and infrastructure.
Where the money will go
Under the new plan, ₦15.52 trillion will go to servicing existing debts, while ₦26.08 trillion is set aside for projects like roads, power, security, schools and hospitals.
Top spending areas include:
– Defence and security: ₦5.41 trillion
– Infrastructure: ₦3.56 trillion
– Education: ₦3.52 trillion
– Health: ₦2.48 trillion
Oil target
The government says higher security spending is needed to unlock farming, mining and manufacturing activity across the country.
The budget assumes oil will sell at about $64.85 per barrel and that Nigeria will produce 1.84 million barrels per day. Because oil still brings in most of Nigeria’s foreign income, any drop in prices or production could widen the budget gap.
The government also expects the naira to average about ₦1,400 to the dollar in 2026.
Tinubu told lawmakers that inflation has eased and foreign reserves have grown.
“These outcomes are not accidental. They reflect difficult but deliberate policy choices,” he said.
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