The Senate has greenlit a record-breaking ₦68.32 trillion aggregate expenditure for the 2026 fiscal year.
This follows the rapid adoption of President Tinubu’s request for a ₦9.09 trillion upward revision, a move designed to regularize legacy projects and consolidate national debt.
The fiscal framework allocates ₦32.29 trillion to capital expenditure, nearly doubling the ₦15.43 trillion set aside for recurrent spending.
However, the weight of Nigeria’s financial obligations remains evident, with ₦15.81 trillion earmarked for debt servicing and ₦4.80 trillion for statutory transfers.
While the massive capital injection signals a aggressive push for infrastructure, the debt service figure highlights the persistent fiscal strain on the federation’s accounts.
Recurrent expenditure remains significant, covering personnel and administrative costs, while statutory transfers will fund key institutions, including the judiciary and other constitutionally backed bodies.
The budget approval comes alongside the Senate’s consideration of sweeping adjustments requested by President Bola Ahmed Tinubu, aimed at addressing outstanding capital commitments and funding strategic national projects.
A major component of the adjustment is the inclusion of ₦5.71 trillion in legacy capital obligations carried over from the 2025 fiscal cycle, alongside ₦2 trillion earmarked for priority projects across key sectors.
The move is intended to prevent delays in project execution and ensure continuity in government programmes.
The President also proposed several strategic interventions across infrastructure, health, and governance.
Under the Ministry of Finance Incorporated (MOFI) framework, the government is seeking ₦478.60 billion in equity contributions for light rail projects in Lagos, Kano, Kaduna, and Ogun States, as well as feasibility studies for rail projects in Enugu and Maiduguri and expansion of the national rail network.
Additionally, ₦8.96 billion has been proposed for feasibility studies on the Calabar–Maiduguri Corridor and the Maiduguri–Sokoto Superhighway, part of a broader infrastructure expansion plan.
The health sector is also set for significant funding, with US$344.83 million (about ₦482.76 billion) allocated to priority interventions linked to existing bilateral commitments.
In the judiciary, ₦98.50 billion has been proposed for the Court of Appeal, ₦36.7 billion for the Supreme Court, and an additional ₦268.54 billion to strengthen the judiciary’s budget ceiling and support new judicial appointments ahead of the 2027 general elections.
Altogether, the adjustments total ₦9.09 trillion, reflecting a significant expansion of the 2026 fiscal framework.
To finance the expanded budget, the federal government is relying on a mix of revenue enhancements and borrowing.
An increase in the oil benchmark by $10 per barrel is expected to generate ₦2.592 trillion, while reforms in the telecommunications sector are projected to boost tax revenues, with major operators such as MTN Nigeria and Airtel Nigeria expected to contribute about ₦874 billion in corporate income tax.
To bridge the resulting funding gap, the federal government intends to secure an additional ₦6.163 trillion through external borrowing.
With these provisions, the ₦68.32 trillion 2026 budget is designed as a primary lever for infrastructure development, institutional reform, and economic expansion.
However, the plan continues to face scrutiny from economists who remain concerned about long-term debt sustainability and the maintenance of a healthy fiscal balance.
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